Community Preservation Partners (CPP) and Hampstead Development Partners have secured financing to acquire and renovate an affordable senior housing property in New Haven, Connecticut.
KeyBank Community Development Lending and Investment (CDLI) and KeyBank Real Estate Capital’s (KBREC’s) Commercial Mortgage Group (CMG) provided $37.5 million of capital for the deal.
The capital comprises $12.5 million of low-income housing tax credit (LIHTC) equity, a $6 million equity bridge loan, a $19 million public bond offering, and $19 million of Fannie Mae tax-exempt bond collateral, reported the bank.
Originally built in 1973, Fairbank Apartments, a Section 8 property on 1 acre of land, consists of 106 one- and 15 two-bedroom apartments in a nine-story building. The property, which has a KeyBank branch on the ground floor, will have a Housing Assistance Payment (HAP) contract covering 112 units for 20 years. The nine other units also will operate as tax credit units.
In addition to the HAP agreement, the property will operate under a new bond regulatory agreement requiring 40% of the units be restricted to 60% of the area median income (AMI) and a new LIHTC land-use regulatory agreement from the Connecticut Housing Finance Authority restricting 96 units to 60% of the AMI and 25 units to 50% of the AMI.
The New Haven Housing Authority issued the tax-exempt bonds.
Based in Irvine, California, CPP is an affordable housing rehabilitation company with more than 7,200 units throughout the United States.
Hampstead Development Partners, with offices in San Diego and Bethesda, Maryland, develops and repositions properties using conventional financing, bond financing, LIHTCs, and historic tax credits with state, and local participation.
Jonathan Wittkopf of KeyBank’s CDLI team, Robbie Lynn of KBREC’s CMG team, and Victoria O’Brien and John-Paul Vachon of Key Community Development Corp. structured the financing. Sam Adams of KeyBanc Capital Markets’ Public Finance Group served as the bond underwriter.