Real Estate Capital

KeyBank has financed a $26 million first mortgage, Fannie Mae loan for the acquisition of Springhouse apartments in Louisville, KY. Built in 2016, the 224-unit garden style apartment complex consists of nine, three- and four-story residential buildings, situated on 15.245 acres of land. The loan is structured with a 10-year term, subsequent to a 7-year interest-only period, and was used for financing the acquisition.

Springhouse is Green Globes certified, and therefore eligible for Fannie Mae Multifamily Green Financing which encourages the increased environmental and health performance of buildings. The complex offers one-, two-, and three-bedroom units, with a wide range of amenities that include a clubhouse, business center, fitness center and pool. Springhouse was built on farmland. The old farmhouse that anchored the property still stands today at the center and is on the national registry of historic places.

The transaction includes a $14,838,000 ($121,623/unit) non-recourse, first mortgage loan secured by a 122-unit conventional multifamily apartment complex known as Casa Tierra located in Albuquerque, NM. The Property consists of 2, non- contiguous parcels, situated on a 5.488-acre land. The loan is structured with a 5-year term, and subsequent to a 3-year interest only period, amortizes on a 30-year schedule.

The transaction includes a $62,541,000 ($64,343/unit) non-recourse, first mortgage loan secured by a 972-unit hi-rise affordable apartment community known as Lafayette Boynton Apartments located in Bronx, NY. Built in 1969 and renovated in 2010, the Property consists of four, 19-story residential buildings, situated on 15.75 acres of land. The proposed loan will be used for acquisition. The loan is structured with a 10-year interest only term.

The transaction includes a $74,630,000 ($118,838/unit) non-recourse, first mortgage loan secured by a 628-unit garden style apartment complex known as Lakes at 8201 located in Merrillville, IN. Built in between 1992 to 1993, the Property consist of 628, 1- 2- and 3-bedroom units in 20 residential buildings. Additional buildings include an office/clubhouse, and 13 garages (245 garage spaces), situated on a 36.66-acre land. The proposed loan will be used for acquisition. The loan is structured with a 7-year term, and subsequent to a 4-year interest only period, amortizes on a 30-year schedule.

KeyBank has financed a $4.6 million first mortgage, Fannie Mae loan for the acquisition of Briarwood Apartments (the Property) in Ocala, FL. Built in 1973 and renovated in 2021, the 55-unit garden style apartments consist of five, two-story residential buildings, situated on a 2.22 acres of land. The loan is structured with a 10-year term carrying a 10-year interest only period.

The Sponsor, RJC Legacy Investments, has allocated substantial resources to renovate and update the Property through a concerted capital improvements program. The anticipated renovations will modernize the Property’s mechanical operations and aesthetic, driving expected rent growth across the Property, while improving tenant satisfaction.

Briarwood Apartments, located in Ocala, Florida, is directly adjacent to the city’s central business district (CBD), as well as Historic Downtown Ocala. Ocala, a popular destination for both tourists and local residents, supports a range of restaurants, boutique retail offerings, and commercial developments. The 55-unit property offers a wide range of apartment mixes featuring one, two, and three bedrooms with up to two bathrooms.

The transaction includes a $28,426,000 ($201,603/unit) non-recourse, first mortgage loan secured by 141-unit garden style apartments known as Lucia Apartments located in Pico Rivera, CA. Built in 1971 and renovated in 2021, the property consists of 4, three-story residential buildings and 1 single-story clubhouse, situated on a 3.77-acre land. The proposed loan will be used for refinancing the existing debt. The loan is structured with a 5-year term, and subsequent to a 3-year interest only period, amortizes on a 35-year schedule.

The transaction includes a $2,333,000 ($98 PSF) non-recourse, first mortgage secured by a 23,925 square foot, 401-unit self-storage facility known as Mini U Storage – Landmark located in Alexandria, VA. The Property was built in 1977. The Property consists of (4), two-story buildings and a leasing office/manager's apartment situated on a 0.69-acre land. The proposed loan will be used for refinancing the existing debt. The loan is structured with a 10-year, interest only, term.

The transaction includes a $43,850,000 ($149,150/unit/sf/room) non-recourse, first mortgage loan secured by 294-unit/sf/room garden style apartments known as The Verge 8200 located in Reno, NV. Built in 1989, the property consists of 41, two-story residential buildings, situated on a 19.54-acre land. The proposed loan will be used for refinancing the existing debt. The loan is structured with a 5-year term, and subsequent to a 3-year interest only period, amortizes on a 30-year schedule.

At the end of the first quarter, Key closed on two HUD loans with long-term client, DLTC. The loans, a $3,931,900 non-recourse, first mortgage loan secured by an Intermediate Care facility known as “Bella Point Bridgton," located in Bridgton, ME; and a $4,672,100 non-recourse, first mortgage loan secured by an Intermediate Care facility known as “Bella Point Fryeburg," located in Fryeburg, ME, represent the culmination of three years of work by Key’s Business Banking and Commercial Mortgage Teams to bridge a portfolio of turnaround assets. Navigating through the COVID crisis and recent economic turbulence, the client secured a low fixed rate on both loans. Adding to 12 deals already closed with Key, the two deals represent a strong business model for Key’s bridge to HUD program in seniors housing.

At the end of the first quarter, Key closed on two HUD loans with long-term client, DLTC. The loans, a $3,931,900 non-recourse, first mortgage loan secured by an Intermediate Care facility known as “Bella Point Bridgton," located in Bridgton, ME; and a $4,672,100 non-recourse, first mortgage loan secured by an Intermediate Care facility known as “Bella Point Fryeburg," located in Fryeburg, ME, represent the culmination of three years of work by Key’s Business Banking and Commercial Mortgage Teams to bridge a portfolio of turnaround assets. Navigating through the COVID crisis and recent economic turbulence, the client secured a low fixed rate on both loans. Adding to 12 deals already closed with Key, the two deals represent a strong business model for Key’s bridge to HUD program in seniors housing.

82-unit garden-style apartment complex known as “The Wilson Apartments” located in Kent, WA. Built in 2001, the Property consists of five, three-story apartment buildings, situated on 3.91 acres of land.

216-unit garden-style apartment complex known as “Buttonwood Tree Apartments” located in Wichita, KS. Built in 1982 and renovated in 2002, the property is comprised of 21, one- and two-story residential buildings, situated on 17.46 acres of land.