A 159-unit housing development in Sacramento, California, has secured $78 million in financing from KeyBank Community Development Lending and Investment (CDLI) and KeyBank Real Estate Capital (KBREC).
The financing will help Sacramento-based CFY Development to build the 1717 S Street project, which will feature a mix of studio, one-, and two-bedroom units for residents between 50% and 80% of the area median income.
CDLI provided a $54.5 million construction loan, and KBREC secured a $23.3 million tax-exempt loan from Freddie Mac with a fixed-rate forward commitment.
Additional financing for the 4% low-income housing tax credit project includes:
- $30.3 million of federal and state tax credit equity proceeds from Alliant Capital and Sugar Creek Capital;
- $3.3 million of soft, subordinate debt from the Capitol Area Development Authority; and
- $7.9 million of soft, subordinate debt from the California Housing Finance Agency (CalHFA) through its Mixed-Income Program. CalHFA also is issuing the tax-exempt debt.
The project is a key piece in the long-term redevelopment of the R Street corridor as a vibrant, transit-oriented, mixed-use, mixed-income neighborhood.
Andrew Nathenson and Keven Ruf of KeyBank’s CDLI team, and Jonathan Woodland and Jay Small of KBREC’s Commercial Mortgage Group structured the financing.