KeyBank Provides $12M for Cleveland Adaptive Reuse Project
Snavely Group will use the financing to create 38 affordable units at Forest City Square Apartments, an environmentally friendly housing development.
KeyBank Community Development Lending and Investment (CDLI) has closed an $11.5 million loan for Snavely Group. The company intends to create 38 affordable housing units at Forest City Square Apartments in Cleveland. The project targets low- and moderate-income families earning between 30 and 60 percent of the area’s median income.
Located at 1400 W. 25th St. and 2519 Detroit Ave., the property is close to the Cuyahoga River and within an eight-minute drive of downtown Cleveland. The one-century-old building will be repurposed in an environmentally responsible manner. Moreover, the developer plans to include high-performance design and a solar array that will offset 75 percent of the energy consumed in the building.
The financing includes a $9.9 million construction loan and a $1.5 million, nine percent state historic tax credit bridge loan. Additional sources of funding included low-income housing tax credit, state and federal historic tax credit as well as solar and energy tax credit equity.
Kyle Kolesar, senior vice president at KeyBank CDLI, arranged the financing. Last year, KeyBank provided an inaugural loan for the acquisition and rehabilitation of two multifamily assets in Newark, N.J.
Image via Google Street View