Submitted by Laura Suter, KeyBank.
KeyBank provided and arranged 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 – 60% area median income (AMI), given its Section 42 designation under the Low-Income Housing Tax Credit (LIHTC) program.
KeyBank’s Community Development Lending & Investment (CDLI) 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.
Victoria Quinn of KeyBank’s CDLI team and Fred Dockweiler of KeyBank’s Commercial Mortgage Group partnered to coordinate the financing.