KeyBank Provides $23M Financing for Pennsylvania Affordable Community

The adaptive reuse project will transform a former school into a 50-unit property catering to seniors 62 and over.
Canonsburg Senior Lofts. Rendering courtesy of KeyBank

Affordable housing developer MVAH Partners LLC, along with non-profit partner Blueprints, has secured financing for its upcoming 50-unit Canonsburg Senior Lofts property in Canonsburg, Pa. KeyBank Community Development Lending and Investment (CDLI) has provided an $11 million construction loan, while Key Community Development Corp. secured $12 million in 9 percent LIHTC equity for the project.

With an estimated cost of $14.8 million, the planned community comprises the adaptive reuse of a former elementary school, as well as its expansion. The mixed-income property is expected to include 42 units catering to seniors earning between 20 and 60 percent of AMI, along with eight market-rate apartments. Completion is set for spring 2022.

Additional financing comes from the Pennsylvania Housing Affordability and Rehabilitation Enhancement program, with $1 million of realty transfer tax and housing trust funds. Furthermore, the Pennsylvania Housing Finance Agency provided a $1.3 million permanent loan.

Situated at 803 First St., the site is in proximity to Interstate 79 and 20 miles southwest of downtown Pittsburgh. Canonsburg Senior Lofts will comprise one- and two-bedroom floorplans, for seniors 62 and over. Community amenities will include a fitness center, lounge area and rooftop viewing deck. Blueprints, which mobilizes resources to enable low-income individuals in becoming self-sufficient, will provide supportive services for residents. The organization serves 20,000 residents across Greene and Washington counties, as well as West Virginia.

KeyBank’s Recent Activity

David Lacki and Laura Janosko of the KeyBank CDLI structured the financing, while Ryan Olman was in charge of securing the equity. Last February, KeyBank provided a nearly $30 million financing package for the construction of a 116-unit affordable housing project in Fitchburg, Wis. Limestone Ridge Apartments is slated to offer one-, two- and three-bedroom options to households earning between 50 and 80 percent of AMI.

In a recent interview with Multi-Housing News, Carolyn Nazdin, senior vice president & healthcare mortgage banker at KeyBank Real Estate Capital, discussed senior housing financing issues brought upon by the pandemic, as well as the industry’s coping strategies. More effective use of technology and the development of an affordable assisted living model are among the most important current trends within the sector, according to Nazdin.