KeyBank Delivers $161M for Age-Restricted Portfolio

Structured in a variety of ways, the Fannie Mae funding refinances 13 age-restricted housing properties totaling 1,500 units in four states.

The Summit at Viewcrest
The Summit at Viewcrest, Kansas City, Mo.

KeyBank Real Estate Capital has provided $161.5 million in Fannie Mae DUS and balance-sheet financing to Calamar Enterprises Inc. The funding was provided to refinance a portfolio of 13 age-restricted housing properties totaling 1,500 units across of New York, New Hampshire, Missouri and Nebraska.

A total of $113.3 million in debt was provided through the Fannie Mae DUS program and structured as two cross-collateralized pools with seven- and 12-year terms. Another $48.3 million was furnished through the KeyBank balance sheet.

We at KeyBank did 13 loans in one closing,” KeyBank Real Estate Capital’s Boston-based senior vice president Dirk Falardeau told MHN. Falardeau and David Pyc of Key’s income property and commercial mortgage groups originated the loan for the sponsor, Calamar Enterprises Inc.

The first 10 were Fannie Mae loans, with six of them in one pool and a seven-year term. All were cross collateralized. The second Fannie Mae pool included four loans with PILOT (payment in lieu of tax) agreements on them; all were in New York State, with 12-year terms “to make the exit strategy more feasible.”

The last three loans were undertaken on KeyBank’s balance sheet. “They were handled that way because they were still in lease-up and didn’t have sufficient occupancy to qualify for Fannie Mae,” Falardeau said, noting the loans closed on Dec. 28, 2017.

Structuring Challenges

The difficulty was structuring the loans, deciding which would be seven years, which would be 12 years and which would be on our balance sheet. Not all of the Fannie Mae loans were stabilized. Four were done as part of Fannie Mae’s Near-Stabilization program, which made it possible to close those loans prior to (the properties) being 90 percent occupied.”

Through its integrated platform, KeyBank Real Estate Capital was able to provide Calamar with the financing solution it needed to complete a transaction that involved assets in various stages of lease-up.

“It was a privilege to work with Calamar Enterprises and be a part of this transaction,” Falardeau said. “They are a best-in-class operator of this asset class, and provide high-quality housing to senior communities throughout the U.S.”

Image courtesy of after55.com