Higher Education Finance Quarterly

KeyBanc Capital Markets served as Joint Lead Arranger on the successful close of $770 million Senior Secured Credit Facilities in relation to a hospital real estate portfolio recapitalization. 

A joint venture between Medical Properties Trust and Blue Owl Real Estate recapitalized its Utah hospital portfolio — a five-asset, 692-bed hospital portfolio located in Utah. The hospitals are leased by Catholic Health Initiatives (CHI), a subsidiary of CommonSpirit Health and a member of its obligated group under the Master Trust Indenture governing its bonds. The triple net master lease terms include annual rental increases with the backing of CommonSpirit’s obligated group. The portfolio is situated in a high-value healthcare market and is expected to see continued growth.

Cain Brothers, a division of KeyBanc Capital Markets, served as exclusive financial advisor to the County of Santa Clara in the acquisition of Regional Medical Center from HCA Healthcare (NYSE: HCA).

On April 1, 2025, Santa Clara County completed the acquisition of Regional Medical Center from HCA Healthcare, integrating RMC into the County of Santa Clara Health System. The acquisition strengthens its commitment to the health and well-being of all communities in Santa Clara County.

Regional Medical Center is a premier healthcare facility known for providing comprehensive medical services, including emergency care, specialized treatments, and advanced surgical procedures. With this acquisition, RMC will expand important clinical programs and services, including trauma, stroke, obstetrics, and advanced cardiac services to patients living in East San Jose.

Santa Clara operates one of California’s most robust public healthcare systems, dedicated to serving the diverse needs of its communities. With a longstanding commitment to accessible healthcare for all residents, the county oversees the Santa Clara Health System, which includes hospitals, clinics, and specialty care services.

HCA Healthcare, a Fortune 500 company, is one of the nation’s leading healthcare providers, operating a vast network of hospitals and medical facilities across the United States.

The transaction includes a $8,137,500 ($59,835/unit) non-recourse, first mortgage loan secured by a Class B, 136-unit garden style apartment community, known as Parkwyn Townhomes, located in North Richland Hills, Texas. Built in 1984, the property comprises eight two-story residential buildings and one clubhouse, situated on 4.82 acres. Parkwyn Townhomes is currently operating as a traditional market-rate apartment building. Upon loan closing, the property will enter the Pecos County Housing Finance Corporation (HFC) ownership structure where the title will be transferred to the HFC and the property will be ground-leased to the borrower. The borrower will become the leasehold estate owner which will qualify for a 100% real estate tax exemption, so long as 90% of units are set aside for occupancy by residents with annual incomes of 140% of the Area Median Income (AMI), including 50% of the units by residents with annual incomes of 80% of the AMI. The loan, co-originated by KeyBank and Argentic on a 35/65 split and structured with a 5-year interest only term, will be used to refinance the existing debt on the property.

On April 24, 2025, KeyBanc Capital Markets Inc. (KBCM) successfully closed $184 million of Senior Secured Credit Facilities for Clearway Energy Group’s (CEG) Tuolumne utility-scale wind project in Klickitat County, Washington. The facilities are comprised of $162 million in Term Loan, $14 million Debt Service Reserve LC, $7 million in PPA LC, and $1 million in BSA LC. Proceeds will fund the project’s operations post-acquisition. KBCM acted as Joint Lead Arranger, Administrative Agent, and Collateral Agent. 

Tuolumne is a 137 MW utility-scale wind project in the WECC – PNW power market, previously owned and operated by Turlock Irrigation District. Clearway has acquired Tuolumne, and the project will continue to generate revenue via a 15-year power purchase agreement with its original owner, Turlock Irrigation District. 

This represents the twentieth transaction between CEG and KBCM.

About Clearway Energy Group:
CEG was founded in 2012 and is headquartered in Princeton, New Jersey. It is a full-scope Development & Operations platform with over 11.8 GW of wind, solar, and energy storage assets in operation. In 2022, TotalEnergies acquired 50% of CEG from Global Infrastructure Partners. As of April 2025, CEG has an extensive pipeline of 30 GW of solar, wind and storage projects in both regulated and deregulated regions. The company is also committed to grid reliability with over 10 GW of paired and standalone storage in development. CEG’s management team has over 1,000 employees with operating solar and wind projects in 35 states.

On April 11, 2025, KeyBanc Capital Markets Inc. (KBCM) successfully closed $165.5 million in Senior Secured Credit Facilities (the Facilities) to refinance US Solar Fund’s (USF) operating solar portfolio. Amber Infrastructure Group (Amber or the Investment Manager) is the investment manager for US Solar Fund and responsible for USF’s investment origination, asset management, and fund management.

The Facilities comprise a $127.1 million Term Loan, a $10.5 million Revolving Credit Facility, and $27.9 million in Letters of Credit. The proceeds were used to refinance the existing debt on the portfolio and smooth out amortization to help US Solar Fund manage its dividend yield. KBCM acted as the Coordinating Lead Arranger, Administrative Agent, Collateral Agent, and Issuing Bank.

The portfolio includes 41 operating solar assets with a total capacity of 443 MWdc, diversified across California, North Carolina, Oregon, and Utah.

Investment Manager Overview
Amber Infrastructure is an international infrastructure specialist, focused on investment origination, development, asset management, and fund management. Amber’s core business focuses on infrastructure assets across the public, transport, energy, digital, and demographic infrastructure sectors. The Investment Manager is responsible for the day-to-day management of US Solar Fund, whose investment objective is to provide investors with attractive and sustainable dividends with an element of capital growth by owning and operating solar power assets in North America.

On April 1, 2025, SmartStop Self Storage REIT, Inc. (SmartStop or the Company) priced their Initial Public Offering, which featured a base offering of $810 million that grew to $931.5 million after the overallotment option was exercised. The Company plans to use the net proceeds from the offering towards redeeming 100% of its issued and outstanding Series A Preferred Stock, paying down existing debt under its credit facility and repaying an acquisition facility. KeyBanc Capital Markets served as Active Bookrunner on the transaction.

KeyBank Community Development Lending and Investment (CDLI) provided $23.3 million in construction loans and invested $10.7 million in low-income housing tax credit (LIHTC) financing, and KeyBank’s Commercial Mortgage Group also arranged $16.2 million in Freddie Mac TEL permanent financing for the construction of two affordable multifamily housing projects in Los Angeles. The sponsor and developer, HVN Development, also provided loans in the amount of $2.4 million for these two projects. California Housing Finance Agency (CHFA) will also issue $14.4 million of Multifamily Housing Revenue Bonds, as well as $7 million in recycled bonds to fund the permanent loans.

The first apartment (North Mathews), located at 121 North Mathews Street, is a single four-story, 40-unit building that will comprise of six one-bedroom apartments and 33 two-bedroom apartments, as well as one two-bedroom, revenue-generating manager unit. All 39 LIHTC units will be rent-restricted and restricted to tenants earning at or below 80% of area median income (AMI). Rent restrictions are as follows: four units at 30% AMI, four units at 50% AMI, 23 units at 60% AMI, and eight units at 80% AMI.

The second apartment (Brynhurst), located at 6018 Brynhurst Avenue, is a single four-story, 50-unit building that will comprise of seven one-bedroom units and 42 two-bedroom units, as well as one two-bedroom, revenue-generating manager unit. All 49 LIHTC units are restricted to tenants earning at or below 80% AMI. Rent restrictions are as follows: five units at 30% AMI, five units at 50% AMI, 29 units at 60% AMI, and 10 units at 80% AMI.

North Mathews and Brynhurst are located in highly walkable areas and near the LA Metro system, which provides bus and subway service throughout Los Angeles. The property manager, Aperto Property Management, will oversee the management of both apartments. 

LifeSTEPS will offer on-site supportive services including financial literacy, computer training, and home-buyer education, as well as health and wellness programs. All services are free for tenants and paid for by the sponsor/developer, HVN Development.

HVN Development has partnered with Integrity Housing, an experienced developer committed to identifying innovative solutions to ease California’s housing crisis by increasing the affordable housing supply. Integrity Housing has completed nearly 40 affordable housing projects in California. 

KeyBank Community Development Lending and Investment (CDLI) provided a $13.9 million construction loan and $21.4 million in low-income housing tax credit (LIHTC) financing for the construction and rehabilitation of Miami Inspiration Housing in Miami, Arizona. The project also received $500,000 of soft debt financing from the Arizona Department of Housing. This development marks a significant milestone in the community as it is the first affordable housing project to be built in the market since 2009.

Miami Inspiration Housing will consist of the renovation of a non-occupied historical building with 16 units and the new construction of a second building with 24 units, creating a 40-unit total affordable housing complex. The property will provide quality housing for families, with income levels between 40%, 50%, and 60% of the AMI. Miami Inspiration Housing will provide families a safe and vibrant place to call home, positively impacting the community at large.

The development is located in Miami, a rural town approximately 80 miles east of Phoenix. The community is located within the Copper Corridor where mining and ranching still represent 20% of the county’s primary sources of employment, as several smaller copper mines and processing facilities remain active.

Miami Inspiration Housing is located near major local employers including Freeport McMoRan Mining, Capstone Mining, Globe and Miami Unified School Districts, Gila Community College, Cecil Trucking, and Cobre Valley Regional Medical Center. The property also sits just two blocks north of Highway 60, Miami’s main thoroughfare, and benefits from proximity to retail, healthcare, recreation, and other amenities.

The real estate developer, Chicanos Por La Causa (“CPLC”), is a community developer with a 56-year history of empowering lives through more than 30 different programs and services in Arizona and most recently in California, Colorado, Nevada, New Mexico, and Texas. Miami Inspiration is part of a larger strategy to bring diverse housing opportunities in rural and urban communities to meet local needs including wraparound education and social and workforce development services. Gorman Property Management, an affiliate of Gorman & Company (“Gorman”), will serve as the management company. Today, Gorman manages more than 60 apartment communities, totaling over 6,000 units.