KeyBank Real Estate Capital (KBREC) secured $17 million of fixed-rate Freddie Mac financing and a $6 million equity bridge loan for Spring Valley, N.Y.-based Capital Realty Group, a real estate company that acquires, develops and manages affordable housing, to acquire an affordable multifamily property in Akron, Ohio.
Mayflower Manor is a magnificent 16-story high-rise that consists of 233 apartments for the elderly and disabled. Capital Realty Group will renovate the property and restore its historical character while preserving affordability for the residents. Capital Realty Group is adding numerous amenities such as lounge areas and gyms along with a full-time, on-site resident service coordinator.
Capital Realty Group has renewed a Housing Assistance Payments contract with the U.S. Department of Housing and Urban Development for a 20-year term. Furthermore, Mayflower is subject to a 30-year regulatory agreement with the Ohio Housing Finance Agency in connection with low-income housing tax credits to support the renovation. The tax-exempt Freddie Mac loan is structured with a 17-year term. The equity bridge loan will be for a term of 24 months and used to facilitate construction financing.
“We are excited to be able to preserve this fabulous asset in Akron,” said Moshe Eichler, president of Capital Realty Group. “The city is making wonderful progress in transforming Main Street. Residents will be able to age in a newly renovated modern apartment within a historically restored building.”
“The Mayflower Manor is another great example of how we are fulfilling KeyBank’s purpose to help clients and communities thrive by financing projects that stabilize and revitalize cities,” said Rob Likes, head of KBREC’s Community Development Lending and Investment (CDLI) team. “We continue to help meet much-needed capital and investment needs in the affordable housing segment nationwide.”