Sunset Garden Apartments is an affordable seniors housing property in Puyallup, WA.
SEATTLE—The Washington Low Income Housing Alliance reports that more than 200,000 Washington households must choose between food, household and rent obligations. This is a startling number.
The lack of affordable housing continues to impact a number of Americans including the elderly in the Puget Sound. With those needs firmly in view, however, there are signs of support.
Two recent financing transactions are examples of this assistance. In the larger of the two, KeyBank provided both construction and permanent financing supporting AVS Communities' plan to construct The Villas at Arlington, a 312-unit mid-rise apartment complex with 17 three-story residential buildings. The property is also subject to Section 42 of the low-income housing tax credit/LIHTC program and will make affordable housing options available to families earning less than 60% area median income in Arlington, WA.
KeyBank's community development lending and investment team provided a $65.3 million construction loan which will be taken out by a $51.5 million Freddie Mac TEL permanent loan provided by KeyBank's Commercial Mortgage Group. The Freddie Mac fixed-rate permanent loan was a 24-month forward commitment and upon conversion, the permanent loan will have a 15-year term and 35-year amortization schedule.
“The Villas at Arlington's 312 units will have a material impact on this small community, offering new well-appointed units at below-market rates, which will allow working families to have a comfortable and affordable place to call home,” Victoria Quinn, vice president and senior relationship manager of KeyBank Real Estate Capital, tells GlobeSt.com. “KeyBank helps address the affordability problem by financing the construction of this affordable housing property that serves families earning less than 60% area median income. The Villas at Arlington demonstrates KeyBank's commitment to support a project from start to finish by providing the full range of financing–from construction to permanent.”
The Washington State Housing Finance Commission provided the tax-exempt bonds for the project and Alliant Capital Ltd. is the LIHTC investor. Quinn and Fred Dockweiler of KeyBank's Commercial Mortgage Group partnered to coordinate the financing.
In the second transaction, KeyBank provided both construction and permanent financing to support the Senior Housing Assistant Group/SHAG with the acquisition and rehabilitation of Sunset Garden Apartments, an affordable seniors housing property serving those aged 62 or older in Puyallup, WA. The 276-unit community is reserved for seniors making between 50 to 60% area median income, given its Section 42 designation under the LIHTC program.
KeyBank's community development lending and investment team provided a $28.5 million construction loan and KeyBank's Commercial Mortgage Group arranged the permanent takeout loan, a $24 million fixed-rate Fannie Mae loan with a 24-month forward commitment. The mortgage loan includes a 15-year term with a two-year interest only period and 35-year amortization.
The Washington State Housing Finance Commission issued the tax-exempt bonds, with KeyBank's public finance group serving as bond underwriter. Quinn and Dockweiler again partnered to coordinate the financing.
The Washington State Housing Finance Commission provided the bonds for as part of its bond/tax credit program to support affordable housing development. All LITHC deals must go through the commission.
“KeyBank is committed to serving the communities where we live and work in Washington State by preserving or constructing safe, decent and affordable housing,” Quinn tells GlobeSt.com.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
