KeyBank and Fannie Mae Partner on Inaugural Healthy Housing Rewards Enhanced Resident Services™ Rehabilitation

KeyBank and Fannie Mae Partner on Inaugural Healthy Housing Rewards Enhanced Resident Services™ Rehabilitation

Financing will Allow for the Rehabilitation of Two Affordable Housing Projects in Newark, NJ
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KeyBank Community Development Lending & Investment, is proud to partner with #FannieMae for the inaugural loan for Omni New York's acquisition and rehabilitation of Garden Spires and Spruce Spires apartments in Newark, N.J. #affordablehousing @Key_B2B
Wednesday, September 26, 2018 - 2:35pm

CAMPAIGN: Key Supports Affordable Housing

CONTENT: Press Release

CLEVELAND, September 26, 2018 /3BL Media/ - KeyBank Real Estate Capital (KBREC) and KeyBank Community Development Lending & Investment (CDLI) have provided a first-of-its-kind Fannie Mae Healthy Housing Rewards Enhanced Resident Services loan to Omni New York LLC for the acquisition and rehabilitation of two affordable housing properties in Newark, NJ. The financing totaled $98.4 million, with a $59 million Fannie Mae Reduced Occupancy Affordable Rehab (ROAR) loan and a $23.8 million Economic, Redevelopment and Growth (ERG) bridge loan secured by Garden Spires Apartments and a $15.6 million Fannie Mae Affordable Mortgage loan secured by Spruce Spires Apartments.

“Through our relationship with Fannie Mae, KeyBank is able to invest in affordable housing that will have a long-lasting impact on communities by improving the quality of life for residents, families and surrounding neighborhoods,” said Rob Likes, national manager of KeyBank’s CDLI team. “The rehabilitation of Garden Spires and Spruce Spires Apartments will preserve and improve the quality of 656 affordable housing units in the greater Newark community.”

Built in 1963, Garden Spires Apartments is a 544-unit affordable housing, high-rise apartment complex comprised of two, 20-story apartment buildings. The property offers six different floor plans consisting of one-, two- and three-bedroom units.

Built in 1920, Spruce Spires Apartments is a 112-unit subsidized housing property with all units included in a project-based Section 8 Housing Assistance Payment (HAP) contract. The property also benefits from New Jersey’s PILOT program. The apartment complex is comprised of six, five-story buildings.

“At Fannie Mae, we believe that providing resident support services at affordable rental housing properties can improve the health and well-being of the people who call those properties home,” said Bob Simpson, vice president of affordable and green financing at Fannie Mae. “KeyBank has been a great partner for our first Healthy Housing Rewards Enhanced Resident Services loan and we are thrilled to support developers, like Omni New York, who are committed to ensuring that renters and their families have greater access to health, education, and other community services.”  Fannie Mae’s Healthy Housing Rewards Enhanced Resident Services program offers incentives to borrowers who provide resident services at their affordable multifamily properties.

“Omni New York is proud to partner with KeyBank on the preservation and rehabilitation of Garden Spires and Spruce Spires Apartments,” added Eugene Schneur, managing director of Omni New York. “Access to affordable housing can have a transformative impact on neighborhoods, and our partnership with KeyBank reflects our commitment to providing quality housing and lifestyle solutions to this community.”

Both properties will undergo extensive rehabilitation, including renovating lobby areas, replacing and upgrading building mechanics, modernizing elevators, installing new roofs and doors, improving common areas, replacing boilers, and overhauling and installing new security cameras. The in-unit capital improvements will include installing new floors and windows and replacing kitchen cabinets, appliances, countertops, light fixtures, bathroom vanities, sinks, faucets, bathtubs and tiles.

In addition, both properties will offer resident services supported in part by Fannie Mae’s Healthy Housing Rewards Enhanced Resident Services initiative. At these properties, residents will have access to a variety of services, including programming for health and wellness, nutrition and healthy food access, workforce development, adult and youth education support, and community engagement.

Dirk Falardeau of Key’s Commercial Mortgage Group and Kyle Kolesar of Key’s CDLI group arranged the financing for both properties.

About Key Community Development Lending/Investment

KeyBank Community Development Lending and Investment (CDLI) helps fulfill Key’s purpose to help clients and communities thrive by financing projects that stabilize and revitalize communities. Experts in complex tax credit lending and investing, Key is one of a handful of affordable housing lenders in the country with a platform that brings together balance sheet, equity, and permanent loan offerings. CDLI has a substantial investment and loan portfolio worth more than $2 billion, 90% of which is Low Income Housing Tax Credit (LIHTC) projects. For its ability to lend to, invest in, and serve its communities –especially low-to-moderate income communities – KeyBank has earned nine consecutive “Outstanding” ratings on the Community Reinvestment Act exam, from the Office of the Comptroller of the Currency.

About KeyBank Real Estate Capital

KeyBank Real Estate Capital is a leading provider of commercial real estate finance. Its professionals, located across the country, provide a broad range of financing solutions on both a corporate and project basis. The group provides interim and construction finance, permanent mortgages, commercial real estate loan servicing, investment banking and cash management services for virtually all types of income producing commercial real estate. As a Fannie Mae Delegated Underwriter and Servicer, Freddie Mac Program Plus Seller/Servicer and FHA approved mortgagee, KeyBank Real Estate Capital offers a variety of agency financing solutions for multifamily properties, including affordable housing, seniors housing and student housing. KeyBank Real Estate Capital is also one of the nation’s largest and highest rated commercial mortgage servicers.

About KeyCorp

KeyCorp's roots trace back 190 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 $137.8 billion at June 30, 2018. 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 1,200 branches and more than 1,500 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 KeyBank is Member FDIC.

Media Contact: Laura Mimura 216-471-2883