Affordable TN Properties Receive $59M in Loans

The Millenia Cos. landed construction-to-permanent financing” for the rehabilitation of two Memphis properties adding up to 400 units.
Cavalier Court Apartments
Cavalier Court Apartments

KeyBank’s Community Development Lending & Investment (CDLI) team has provided $59.2 million in combined construction to permanent loan financing to The Millenia Cos. The company intends to rehabilitate two affordable properties in Memphis, Tenn., encompassing 400 units.

CDLI provided a two-year, $18.5 million construction loan with a six-month extension that will convert to a 15-year, $12.3 million tax-exempt permanent loan to support the rehabilitation of Cavalier Court Apartments. The same team arranged a two-year, $17.4 million construction loan convertible to a 15-year, $10 million tax-exempt permanent loan for an overhaul at Gospel Gardens.

Both loans will utilize proceeds of tax-exempt multifamily revenue bonds issued by The Health, Education and Housing Facility Board of the City of Memphis and 4 percent low-income housing tax credit equity provided by WNC.

Senior banker Kelly Frank of KeyBank’s CDLI team originated the financing for both properties. In October, Frank and her colleagues Jeff Rodman and Victoria O’Brien also facilitated a combined $39.4 million loan for the redevelopment and preservation of an affordable property in Cleveland.

Image courtesy of KeyBank