JT Klein Co. Lands $29M for Wisconsin Affordable Housing Project

Limestone Ridge Apartments. Image courtesy of KeyBank

JT Klein Co. has received a $29.3 million financing package from KeyBank for the construction of Limestone Ridge Apartments, a 116-unit affordable housing project in Fitchburg, Wis. KeyBank Community Development Lending and Investment provided the borrower with a $16 million construction loan, while KeyBank’s Commercial Mortgage Group secured a $13.3 million, fixed-rate forward tax-exempt loan through Freddie Mac.

Limestone Ridge will take shape on a 3.8-acre parcel at 6270 Limestone Lane. Upon completion, the four-story building designed by JLA Architects will house one-, two- and three-bedroom apartments, with all units restricted to households earning between 50 and 80 percent of the area’s median income. Amenities will include a fitness center and playground. Delivery is slated for 2022.

The development site is some 4 miles northwest of downtown Fitchburg just south of Orchard Pointe shopping mall, having several other dining and shopping options nearby. The location is easily accessible through public transportation.

Steve Sparks of KeyBank’s CDLI team worked together with Robbie Lynn of KeyBank’s Commercial Mortgage Group in structuring the financing. In June, the duo provided LEDG Capital with $25 million in Fannie Mae financing for a 127-unit affordable community in Chandler, Ariz.

Limestone Ridge financing details

The Freddie Mac note carries an initial 30-month term with two six-month extension options. After the conversion, the permanent financing will become a 15-year loan with a 35-year amortization schedule and a 12-month interest-only period.

Other financing sources include $6 million in 4 percent low-income housing tax credits from Cinnaire and $4.3 million of soft funding from the U.S. Department of Housing and Urban Development, through its HOME Investment Partnerships Program and Dane County, through its Workforce Housing Fund and the Housing Authority.