CFY Development JV Lands $78M for Sacramento Affordable Project
- Nov 20, 2020
CFY Development and Capitol Area Development Authority have received a $78 million financing package from KeyBank for 1717 S. St., a 159-unit affordable housing project in Sacramento, Calif. KeyBank Community Development Lending and Investment provided $54.5 million in construction financing, while KeyBank Real Estate Capital secured a $23.3 million tax-exempt, fixed-rate loan through Freddie Mac. The community is slated for a 2022 delivery.
The 4 percent low-income housing tax credit project benefits from various other sources of financing. Alliant Capital Ltd. and Sugar Creek Capital provided $30.3 million in federal and state tax-credit equity. The California Housing Finance Agency awarded $7.9 million of soft, subordinate debt through its Mixed-Income Program and issued the tax-exempt debt. CADA also contributed with $3.3 million of soft, subordinate debt.
Kuchman Architects PC designed the six-story building at 1717 S. St. to include 11,300 square feet of ground-floor retail. The unit mix will feature studio, one- and two-bedroom units restricted to households earning between 50 and 80 percent of the area’s median income. Amenities will comprise a fourth-floor sky lounge and a 4,200-square-foot community center.
The 1.2-acre development site is roughly 1 mile southeast of downtown Sacramento within the R Street corridor. Situated just north of Lincoln Highway, the location is also accessible through public transportation.
Andrew Nathenson and Keven Ruf of KeyBank’s CDLI team worked together with Jonathan Woodland and Jay Small of KBREC’s Commercial Mortgage Group to secure the financing. In June, a KeyBank team which included Ruf provided $16 million in financing for two Oregon affordable communities.