KeyBank Arranges $47.6M Construction Loan for Affordable Housing Project in Austin
AUSTIN, TEXAS — KeyBank’s Community Development Lending & Investment team has arranged a $47.6 million construction loan for Bridge at Turtle Creek, a 307-unit affordable housing project in south-central Austin. Units will consist of studio, one- and two-bedroom residences that will be reserved for renters earning between 50 and 70 percent of the area median income.
The borrower, locally based developer JCI Residential, is developing the property in partnership with an affiliate of the Housing Authority of the City of Austin, which is serving as general managing partner of the development. Construction of the 4 percent low-income housing tax credit (LIHTC) project is scheduled to be complete in November 2022.
Additionally, Enterprise Community Partners provided LIHTC equity for the development, and KeyBanc Capital Markets underwrote and sold $40.1 million of short-term tax-exempt bonds that were provided by Austin Housing Finance Corp. Hector Zuniga, Keven Ruf and Robbie Lynn of KeyBank originated the construction loan.
Separately, KeyBank’s Commercial Mortgage Group provided a $40 million Freddie Mac forward commitment, tax-exempt loan for the project. The forward commitment period will be for 36 months. Upon conversion, the permanent loan term will be 17 years with a 40-year amortization schedule.