KeyBank Real Estate Capital secures $81M construction loan

KeyBank Real Estate Capital arranged an $81 million construction and permanent financing loan for the development of South Range Crossing Apartments, an affordable housing property in Parker.

Al Beaumariage of KeyBank’s Commercial Mortgage Group and Kelly Frank of KeyBank’s Community Development Lending and Investment team worked on behalf of the borrower, Dominium, a Minnesota-based developer and manager of affordable housing, to structure the financing.

The loan includes $50 million of construction financing and a $31 million Freddie Mac Tax-Exempt Loan forward commitment. Lending partner CREA LLC provided a 4% low-income housing tax-credit equity investment, while the Colorado Housing Finance Agency issued the bonds and allocated the credits.

The 204-unit, garden-style affordable housing complex will feature one-, two- and three-bedroom apartments. Sitting on 11 acres of land between J. Morgan Boulevard and Ironstone Way, the property will comprise eight three-story residential buildings when completed. It also will feature luxury amenities, including a business center, pool and spa area, playground and fitness center. All units will be affordable to residents earning up to 60% of the area median income. Construction on the property is expected to wrap up in 2021.

Featured in the September 16-October 6, 2020, issue of CREJ