Herman & Kittle Scores $59M for Indianapolis Affordable Project
- Jun 15, 2020
A few months after opening an affordable Indiana community, Herman & Kittle Properties has received a $59.3 million financing package for the development of The Reserve at White River, a 210-unit affordable project in Indianapolis.
KeyBank Community Development Lending and Investment secured the package, which consists of a $27.7 million construction loan, $13.2 million of 4 percent low-income tax credit equity and $18.4 million of forward tax-exempt permanent financing through Freddie Mac. The Indiana Housing and Community Development Authority issued the multifamily housing revenue notes that finance the tax-exempt portion of the project.
Catering to adults aged 55 and older, The Reserve at White River will come online at 2333 Lafayette Road adjacent to Lafayette Landing at Kessler, another Herman & Kittle development. The 11-acre property is some 4 miles northwest of downtown Indianapolis, in the Wayne East submarket. Upon completion, the community will encompass two four-story and 14 single-story residential buildings, as well as a 5,000-square-foot clubhouse. The unit mix will feature one- and two-bedroom floorplans, with 21 units fully accessible for residents with special needs.
All apartments will be set aside for tenants earning between 50 and 70 percent of the area’s median income. Additionally, the property will be subject to a standard land use restriction agreement that will maintain its affordability for the following 30 years, with a 15-year compliance period and an additional 15-year extended-use period.
Kyle Kolesar and Victoria O’Brien of KeyBank CDLI worked together with Robbie Lynn of Key’s Commercial Mortgage Group to structure the financing.