KeyBank Provides $64.7 Million of Financing for New Affordable Housing in Salt Lake City

Rhea-AI Summary

KeyBank has provided $64.7 million in financing for the construction of Silos Apartments, a new affordable housing project in Salt Lake City, Utah. The financing includes $16.6 million in low-income housing tax credit equity, a $21.3 million construction loan, and $6.3 million taxable equity bridge. The project will add 180 units of affordable housing for families earning up to 60% of the area median income. KeyBank's Commercial Mortgage Group also originated a $20.5 million permanent loan, while KeyBanc Capital Markets secured $21.3 million in Utah Housing Multifamily Housing Revenue Bonds.

Silos Apartments is part of a larger master-planned development in the Granary District, aiming to address Utah's substantial need for affordable housing. The project is sponsored by Blaser Ventures, a local affordable housing developer. KeyBank's involvement in this project aligns with its commitment to community development and affordable housing initiatives.

Positive

• KeyBank provided $64.7 million in financing for affordable housing in Salt Lake City
• The project will add 180 units of affordable housing for families earning up to 60% AMI
• KeyBank secured $21.3 million in Utah Housing Multifamily Housing Revenue Bonds
• The project addresses the substantial need for affordable housing in Utah
• KeyBank has earned 11 consecutive 'Outstanding' ratings on the Community Reinvestment Act exam

Negative

• None.

News Market Reaction

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Silos Apartments will add 180 units of much needed affordable housing for families

CLEVELAND, OH / ACCESSWIRE / July 22, 2024 / KeyBank Community Development Lending and Investment (CDLI) provided $16.6 million in low income housing tax credit equity (state and federal), a $21.3 million construction loan and $6.3 million taxable equity bridge for the construction of Silos Apartments, a new affordable housing high rise building in Salt Lake City, Utah.

Silos is also a 180-unit tax exempt bond project with 4% Low Income Housing Tax Credit (LIHTC) integrated into the master planned 8.5-acre Silos development at Salt Lake City's entrance from highway I-15.

KeyBank's Commercial Mortgage Group originated a $20.5 million privately placed forward committed rate locked permanent loan. KeyBanc Capital Markets also secured and sold $21.3 million in Utah Housing Corporation Multifamily Housing Revenue Bonds for the transaction.

The sponsor for the project, Blaser Ventures (fka BCG Affordable Residential Communities), is an affordable housing developer based in Salt Lake City.

Silos Apartments will provide 180 apartments consisting of 60 studio units, 100 one-bedroom units and 20 two bedroom units for individuals and families earning no more than 60% of the area median income (AMI). The development will also include a separate garage financed by the Catalyst Opportunity Fund. This project is the first phase in a larger master mixed use development.

Silos development is in the Granary District, one of the oldest mixed-use neighborhood with shopping and recreational amenities within walking distance.

"In addition to becoming one of the city's most vibrant neighborhoods, the Granary District will also help to address the substantial need for affordable housing in Utah," said Robert Likes, president of KeyBank Community Development Lending and Investment (CDLI). "KeyBank is invested in the expansion of its community impact, and we continue to provide more capital to low-income communities throughout the country."

Kortney Brown and Jeremiah Drake of KeyBank CDLI structured the financing for the transaction. Hector Zuniga of KeyBank Commercial Mortgage Group facilitated the permanent loan placement and Sam Adams of KeyBanc Capital Markets underwrote the tax-exempt bonds.

About KeyBank Community Development Lending and Investment

KeyBank Community Development Lending and Investment (CDLI) finances projects that stabilize and revitalize communities across all 50 states. As one of the top affordable housing capital providers in the country, KeyBank's platform brings together construction, acquisition, bridge-to-re-syndication, and preservation loans, as well as lines of credit, Agency and HUD permanent mortgage executions, and equity investments for low-income housing projects, especially Low-Income Housing Tax Credit (LIHTC) financing. KeyBank has earned 11 consecutive "Outstanding" ratings on the Community Reinvestment Act exam, from the Office of the Comptroller of the Currency, making it the first U.S. national bank among the 25 largest to do so since the Act's passage in 1977.

About KeyBanc Capital Markets

KeyBanc Capital Markets is a leading corporate and investment bank providing capital markets and advisory solutions to dynamic companies capitalizing on opportunities in changing industries. Our deep industry expertise, broad capabilities and unique ideas are seamlessly delivered to companies across the Consumer & Retail, Diversified Industries, Healthcare, Industrial, Oil & Gas, Real Estate, Utilities, Power & Renewables, and Technology verticals. With over 800 professionals across a national platform, KeyBanc Capital Markets has more than $50 billion of capital committed to clients and an award-winning Equity Research team that provides coverage on nearly 500 publicly traded companies. Securities products and services are offered by KeyBanc Capital Markets Inc., member FINRA/SIPC, and its licensed securities representatives, who may also be employees of KeyBank N.A. Banking products and services, are offered by KeyBank N.A.

About KeyCorp

KeyCorp's roots trace back nearly 200 years to Albany, New York. Headquartered in Cleveland, Ohio, Key is one of the nation's largest bank-based financial services companies, with assets of approximately $187 billion at June 30, 2024. Key provides deposit, lending, cash management, and investment services to individuals and businesses in 15 states under the name KeyBank National Association through a network of approximately 1,000 branches and approximately 1,300 ATMs. Key also provides a broad range of sophisticated corporate and investment banking products, such as merger and acquisition advice, public and private debt and equity, syndications, and derivatives to middle market companies in selected industries throughout the United States under the KeyBanc Capital Markets trade name. For more information, visit https://www.key.com/. KeyBank is Member FDIC.

Photo Credit: Architecture Belgique

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Contact Info:
Spokesperson: KeyBank
Website: https://www.3blmedia.com/profiles/keybank
Email: info@3blmedia.com

SOURCE: KeyBank

View the original press release on accesswire.com

FAQ

What is the total financing amount provided by KeyBank for the Silos Apartments project in Salt Lake City?

KeyBank provided a total of $64.7 million in financing for the Silos Apartments project in Salt Lake City, including $16.6 million in low-income housing tax credit equity, a $21.3 million construction loan, and $6.3 million taxable equity bridge.

How many affordable housing units will the Silos Apartments project in Salt Lake City create?

The Silos Apartments project in Salt Lake City will create 180 affordable housing units, consisting of 60 studio units, 100 one-bedroom units, and 20 two-bedroom units.

What is the income requirement for residents of the Silos Apartments in Salt Lake City?

The Silos Apartments in Salt Lake City will be available to individuals and families earning no more than 60% of the area median income (AMI).

Who is the sponsor for the Silos Apartments project in Salt Lake City?

The sponsor for the Silos Apartments project in Salt Lake City is Blaser Ventures (formerly known as BCG Affordable Residential Communities), an affordable housing developer based in Salt Lake City.