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CLEVELAND, November 2, 2023 /3BL/ – KeyBank Community Development Lending and Investment (CDLI) provided $11.3 million for 9% tax credit equity to finance the new construction of Garrett Square Apartments, a 49-unit affordable seniors housing project located in the Glenville neighborhood of Cleveland, Ohio. KeyBank will provide a $9 million construction loan and a $2.3 million permanent loan. Additional permanent financing sources include secondary soft loans of $1.7 million provided through the City of Cleveland’s American Rescue Plan Act, $900,000 from City Home, and $450,00 from the County ERA fund.
Garrett Square will be a four-story midrise building serviced by two elevators located at 1282 E. 125th & 12417 Superior Avenue in Cleveland, available to seniors aged 55 and older. The site is currently occupied with a parking lot and vacant freestanding retail building which will be razed prior to development. The immediate neighborhood consists of single-family homes and commercial uses, with access to public transit and shopping. The project will be partially subsidized with 19 units (39% of the total units) supported by 20-year Project Based Vouchers provided through Cuyahoga Metropolitan Housing Authority (CMHA).
The project sponsor, Volker Development Inc (Volker), is owned and run by a team of experienced real estate development professionals headquartered in Wisconsin with a focus on affordable multifamily projects. Marous Brothers Construction is the general contractor for the project and is one of the leading construction firms in the Midwest.
The Famicos Foundation, a nonprofit organization with more than 20 years of experience managing affordable housing properties, will serve as the property management company of Garrett Square. Famicos will also offer supportive services to enhance resident autonomy, self-determination, and independence. The staff will work alongside the property management team to ensure residents have access to a wide array of programs and social activities to enjoy an improved quality of life. These include financial literacy, cooking classes, gardening programs, emergency preparedness workshops, food delivery and distributions, neighborhood events, healthcare referrals, tax preparation, and access to their legal clinic “Famicos CARES.”
Derek Reed and Greg Kiger of KeyBank CDLI structured the tax credit equity and debt financing for the transaction.
About KeyBank Community Development Lending and Investment
KeyBank Community Development Lending and Investment (CDLI) finances projects that stabilize and revitalize communities across all 50 states. As one of the top affordable housing capital providers in the country, KeyBank’s platform brings together construction, acquisition, bridge-to-re-syndication, and preservation loans, as well as lines of credit, Agency and HUD permanent mortgage executions, and equity investments for low-income housing projects, especially Low-Income Housing Tax Credit (LIHTC) financing. KeyBank has earned 10 consecutive “Outstanding” ratings on the Community Reinvestment Act exam, from the Office of the Comptroller of the Currency, making it the first U.S. national bank among the 25 largest to do so since the Act’s passage in 1977.
About KeyCorp
KeyCorp's roots trace back nearly 200 years to Albany, New York. Headquartered in Cleveland, Ohio, Key is one of the nation's largest bank-based financial services companies, with assets of approximately $188 billion at September 30, 2023. Key provides deposit, lending, cash management, and investment services to individuals and businesses in 15 states under the name KeyBank National Association through a network of approximately 1,000 branches and approximately 1,300 ATMs. Key also provides a broad range of sophisticated corporate and investment banking products, such as merger and acquisition advice, public and private debt and equity, syndications, and derivatives to middle market companies in selected industries throughout the United States under the KeyBanc Capital Markets trade name. For more information, visit https://www.key.com/. KeyBank is Member FDIC.
