KeyBank Provides $54.9 Million of Financing for Affordable Multifamily Housing in Jersey City

Apr 9, 2024 9:00 AM ET
Grandview Terrace Apartments exterior.
Grandview Terrace Apartments. Photo Credit: Linda Pedroso

CLEVELAND, April 9, 2024 /3BL/ – KeyBank secured $54.9 million for Hudson Valley Property Group to refinance Grandview Terrace Apartments, a 283-unit affordable multifamily property located in Jersey City, New Jersey. Grandview Terrace will target family households with incomes between 60% and 90% of area median income (“AMI”).

KeyBank Commercial Mortgage Group’s Affordable Housing Team arranged the HUD Section 223(f) program loan, structured with a 35-year fully amortizing term. The subsidy granted by the Jersey City Housing Authority provides assistance to 267 units (94%) via project-based vouchers.

Grandview Terrace was formerly designated as a HUD Section 202 development, which helps expand the supply of affordable housing with supportive services for the elderly. The property was also subject to flexible subsidy loans, pursuant to Section 201. Hudson Valley Property Group has extended the term of the Section 201(p) flexible use agreement to preserve and extend Grandview Terrace’s affordability for decades to come and avoid tenant displacement.

The HUD 223(f) loan was used to refinance a KeyBank Community Development Lending and Investment (CDLI) acquisition/construction loan, which facilitated renovations of approximately $50,000 per unit. This rehabilitation was undertaken to preserve the long-term viability of this valuable affordable housing asset and included unit upgrades to flooring, appliances, and finishes. Common area upgrades include façade repairs, elevator upgrades, new ACs, repainting and providing access control to residents.

Grandview Terrace Apartments are located in the Journal Square neighborhood, approximately five miles west of Manhattan across the Hudson River. The property is readily accessible by public transportation. The PATH rail system provides service to midtown and downtown Manhattan. The New Jersey Transit bus line contains multiple stops near Grandview Terrace along John F. Kennedy Blvd. Newark Liberty International Airport is located approximately 9 miles away. Recent development of large-scale residential and mixed-use properties have been key to the revitalization of the city’s central business district.

Leslie Meyers of KeyBank Commercial Mortgage Group’s Affordable Housing Team structured the financing for the transaction to pay off the acquisition/construction loan financed by Eric Steinberg of KeyBank CDLI.

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 10 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 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 $188 billion at December 31, 2023. 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 KeyBank is Member FDIC.