Developers have secured important financing to build a 160-unit mixed-income housing community in Tallahassee, Florida.
Magnolia Family II will provide 128 affordable units with income restriction at 33% and 60% of the area median income and 32 market-rate units. It’s the second phase of the redevelopment of a public housing complex constructed between 1971 and 1972 and operated by the Tallahassee Housing Authority.
KeyBank Community Development Lending and Investment (CDLI) and KeyBank Real Estate Capital (KBREC) is providing $49 million of financing to Columbia Residential, a partner of the housing authority, in this deal.
The CDLI financing involves a $33 million construction loan and a $15.9 million Freddie Mac forward commitment permanent loan to fund the new construction of Magnolia Family II.
The project also received support from RBC Community Investments, which provided a $19.5 million equity investment through the low-income housing tax credit program as well as approval from the Tallahassee Housing Authority for project-based voucher assistance.
Residents will receive supportive services at no cost, including access to employment assistance workshops, a financial management program, and adult literacy lessons.
The project’s first phase, which is scheduled to be completed by Nov. 1, also received financing from CDLI and KBREC, according to officials.
Reginald Fenn of CDLI and Leslie Meyers of KBREC structured the financing.