Finance W Minnesota

KeyBank closes $32 million loan for affordable housing in Minnesota

KeyBank closes $32 million loan for housing project in Minnesota,ph01

KeyBank Real Estate Capital arranged a $32.4 million forward committed Freddie Mac Tax Exempt Loan and a taxable tail of $7.1 million for the construction of Legends of Minnetonka in Minnetonka, Minnesota.

The affordable housing property will be comprised of one six-story residential building, totaling 262 age-restricted units, encumbered by a standard Land Use Restriction Agreement for Low-Income Housing Tax Credits and a tax-exempt bond regulatory agreement.

The agreements will restrict 100% of units to 60% AMI and the LURA will span 30 years, structured as a 15-year compliance period, with an additional 15 years for the extended-use period.

Jeff Rodman of Key’s Commercial Mortgage Group arranged the fixed-rate financing with a three-year forward commitment. Upon conversion, the permanent loan term will have a 15-year term and a 35-year amortization schedule.