KeyBank Secures $25M for Phoenix-Area Affordable Asset
- Jun 12, 2020
KeyBank Real Estate Capital has secured $25 million in Fannie Mae financing on behalf of LEDG Capital for the acquisition and renovation of Chandler Village Apartments, a 127-unit affordable community in Chandler, Ariz. Robbie Lynn of KBREC Commercial Mortgage Group and Steve Sparks with the firm’s Community Development Lending team structured the loan.
The 17-year, fixed-rate mortgage carries a 35-year amortization schedule. According to Yardi Matrix data, Community Builders Group sold the asset for $18.2 million. Chandler Village was subject to a land-use restriction agreement (LURA) that expired in December 2019.
As part of the transaction, the Arizona Department of Housing will grant new 4 percent low-income housing tax credits and sign a new LURA that will preserve the property’s affordability fora 15-year compliance period and a 15-year extended-use period. As a result, all units will remain restricted to tenants earning no more than 50 percent of the area median income.
Situated on 8 acres at 598 N. McQueen Road, the community consists of 11 two-story buildings developed in 1972 and renovated in 2004. The unit mix features one- to four-bedroom floorplans averaging 999 square feet, Yardi Matrix shows. Amenities include a playground, a basketball court and laundry facilities. The property is less than 2 miles from the city center, across from Pima Park.
In April, another KeyBank team secured $16 million in financing for two affordable communities in Oregon. Brett Sheehan and Keven Ruf were instrumental in the deal.