Cambridge Square
Overview
Size |
$90.7 Million Construction Loan, LIHTC Equity, Fannie Mae M. TEB, and Bond Underwriting |
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Summary
KeyBank Community Development Lending and Investment (CDLI) provided a $35 million construction loan and $15.7 million in 4% federal Low-Income Housing Tax Credit (LIHTC) equity to finance the acquisition and rehabilitation of Cambridge Square Apartments in Monroeville, Pennsylvania.
KeyBank also arranged an $18 million permanent loan through the Fannie Mae forward MBS Tax-Exempt Bond (M.TEB) program. The $22 million of tax-exempt M.TEB bonds were sold by KeyBanc Capital Markets.
Cambridge Square consists of eight, three-story residential buildings and one community building consisting of 204 apartments. The unit mix includes 78 one-bedroom units, 102 two-bedroom units, and 24 three-bedroom units. The tenant units (97%) are covered by a 20-year Section 8 Housing Assistance (HAP) Contract. The 198 HAP units will be reserved for families and individuals earning no more than 50% of the area median income (AMI). The remaining six units are LIHTC restricted at 60% AMI.
The sponsor for Cambridge Square is Community Preservation Partners (CPP), an affordable housing rehabilitation company. Since its founding in 2004, CPP has developed more than 12,500 low-income housing units and invested more than $2.6 billion into neighborhoods across the United States, keeping housing costs affordable for thousands of seniors, families, and individuals.
Cambridge Square will offer an on-site service coordinator through American HealthCare Group to connect residents with a variety of community resources and services such as health care and healthcare education, financial literacy and computer literacy, child care, youth activities, nutritional services, disability services, tenant home ownership training, and parenting programs.
Anna Belanger and Jonathan Wittkopf of KeyBank CDLI structured the tax credit equity and debt financing for the transaction. Robbie Lynn of KeyBank CMG structured the Fannie Mae M.TEB. Sam Adams of KeyBanc Capital Markets marketed the bonds.