KeyBank has secured $38.4 million for the construction of an affordable community in Austin, Texas. The project, dubbed Del Valle Apartments, will be developed in a public-private partnership between The NRP Group and Strategic Housing Finance Corp. of Austin County.
The community will total 302 units, 286 of which will be reserved for residents earning 60 percent or less of the area’s median income (AMI). In addition, seven units will be reserved for residents earning 40 percent of the AMI and nine units for households earning 30 percent.
KeyBank’s Commercial Mortgage Group secured a $29.4 million Freddie Mac Tax Exempt Loan (TEL) that follows a three-year commitment with one six-month extension. Upon conversion to a permanent loan, the TEL will carry a fixed rate and a 35-year amortization schedule. KeyBank Community Development Lending and Investment also provided a $9 million equity bridge loan for the development.
Kyle Kolesar and Jeff Rodman of KeyBank arranged the project’s financing. Navistone Partners and U.S. Bank provided additional sources of financing for the development.