Related Cos. JV Lands $38M for Ohio Affordable Senior Housing
- Sep 22, 2020
The joint venture of St. Mary Development Corp. and Related Cos. has received a $38 million financing package for the renovation of Biltmore Towers Senior Living, a 230-unit affordable community for seniors in downtown Dayton, Ohio. KeyBank arranged a $6 million equity bridge loan from KeyBank Community Development Lending and Investment and a $16 million fixed-rate, Fannie Mae loan from KeyBank Real Estate Capital’s Commercial Mortgage Group. Additionally, Key Community Development Corp. provided $16 million in low-income housing tax credits and historic tax credit equity.
Originally built in 1929 as the 500-key Dayton Biltmore Hotel, Biltmore Towers was redeveloped to residential housing for adults aged 55 and over in 1981. The 18-story historic landmark at 210 N. Main St. includes more than 23,000 square feet of community space and more than 14,000 square feet of retail. The unit mix features one- and two-bedroom apartments ranging from 429 to 713 square feet. Amenities include a community room, business center and covered parking.
The property is currently subject to an existing land use restrictive agreement which restricts all units to residents earning 45 percent of the area’s median income, with a new LURA aiming to restrict all units to those earning 60 percent of AMI. All units are covered under a Housing Assistance Program contract that was renewed for 20 more years.
Biltmore Towers is near Monument Avenue, one block west of Memorial Hall and just south of RiverScape Park. The immediate area has several dining, shopping and cultural, such as The Loft Theatre and the public library.
Extensive property renovations
With an estimated total cost of up to $18.5 million, the renovation program will include upgrades to apartment interiors, common areas and community spaces, with some 55 percent of the budget allocated for interior improvements. Apartments will receive new cabinets, counters, fixtures, appliances, showers, toilets, flooring and offices. The program will add a new fitness center, as well as clinic areas for physical therapy. Exterior improvements will feature windows and façade repairs, but also landscaping. The developer estimates tenants will not be permanently displaced during the 18-month renovation process.
The Biltmore Towers renovations participates in Fannie Mae’s Green Rewards Program with a green improvement budget of $1.5 million, as planned improvements will help reduce energy costs by 20 percent and water costs by 30 percent. The project is also included in Fannie Mae’s Healthy Housing Rewards Enhanced Resident Services Program.
Project funding also includes a partially assumed loan, existing reserves and a deferred developer fee. As public financial partners, Dayton-Montgomery County Port Authority provided the tax-exempt bond volume cap, while The Ohio Housing Finance Agency allocated the LIHTCs. Additionally, KeyBanc Capital Markets served as bond underwriter.
Kyle Kolesar and Victoria O’Brien of KeyBank’s CDLI team worked together with Tabare Borbon of KBREC’s Commercial Mortgage Group to structure the financing package. Kolesar and O’Brien were also instrumental in the $59.3 million financing of a 210-unit affordable senior housing project in Indianapolis.