NYC Community Lands $42M Fannie Mae Loan

KeyBank’s Community Development Lending and Investment team has closed a second round of financing for the renovation of Twin Parks West, a 311-unit, 10-story affordable apartment property in the Bronx.
Twin Parks West. Image courtesy of KeyBank

KeyBank has closed a $42 million second round of Fannie Mae financing for the renovation of Twin Parks West in New York City, a New York City Housing Authority (NYCHA) property. Under NYCHA’s Permanent Affordability Commitment Together (PACT) program, the authority plans to finance, renovate and manage 62,000 units on a rolling basis by 2028. This 311-unit property located at 365 Ford St. in the Bronx is part of that initiative.

KeyBank Community Development Lending and Investment (CDLI) closed the financing for the renovation, which will be undertaken by a joint venture development team of Gilbane Development Co., Kraus Management, Apex Building Group and Dantes Partners. The loan was used to refinance existing debt on the property.

Fully restricted

The PACT program is New York City’s implementation of the federal Rental Assistance Demonstration (RAD) program. Following closing, Twin Parks West will be fully restricted under a new 20-year Section 8 contract.

The KeyBank CDLI team’s senior mortgage banker Tabare Borbon arranged the fixed-rate financing with a 15-year term, five-year interest-only period and 35-year amortization schedule. The effort is part of KeyBank’s partnership with the Gilbane Development Company to preserve safe and affordable housing.

In recent months, KeyBank CDLI has been active in providing financing for, among others, an adaptive reuse affordable housing project created in a century-old building in Cleveland, Ohio; an affordable housing rehabilitation of two buildings in Memphis, Tenn.; and the first phase of a long-awaited Baltimore apartment community development featuring affordable units.

Under the PACT program, KeyBank has closed a total of $66.5 million in a joint venture led by Gilbane Development Company.