KeyBank Real Estate Capital and KeyBank Community Development Lending and Investment (CDLI) have provided a total of $39.4 million in financing for the redevelopment and preservation of Commodore Apartments in Cleveland, OH. Specifically, KeyBank provided a $16.6 million LIHTC equity investment, an $11.6 million construction loan and an $11.1 million non-recourse, FHA 221(d)(4) first mortgage loan.
“At KeyBank, our integrated platform allows us to provide unique financing solutions that best meet the needs of our clients and the communities in which we serve,” said Rob Likes, national manager of KeyBank’s CDLI team. “Our partnership with The Community Builders, Inc. and University Circle demonstrates our commitment to creating and preserving affordable housing where we live and work.”
The 12-story, high-rise building was originally constructed in 1924 as a hotel and later converted into apartments in 1964, with renovations in 2008 and 2010. The 198-unit multifamily apartment complex features 23 studio, 142 one-bedroom and 33 two-bedroom units. A project-based Section 8 HAP contract will provide rental assistance to 144 units for tenant earning between 30-60% AMI.
“This redevelopment preserves and improves nearly 200 quality apartments for families of all incomes at the heart of University Circle. The Community Builders is thrilled to work with KeyBank and our local partners to preserve and enhance the historic Commodore Apartments and provide connections to opportunities in this thriving neighborhood,” said Terri Hamilton Brown, regional vice president of development, Midwest.”
The building will be substantially rehabilitated, including replacement of the roof, elevator modernization, new fire alarm system installation, replacement of domestic water supply and waste plumbing, accessibility upgrades, and in-unit renovations, including upgrading the kitchens, baths, flooring and interior doors, among other items.
“The historic Commodore building is an important part of University Circle’s past, present, and future. University Circle Inc. is pleased to see The Community Builders Inc., KeyBank Community Development Lending and Investment and KeyBank Real Estate Capital make a significant investment to preserve and enhance the building for the residents and retailers and add to the spectrum of housing."