KeyBank Provides $10M Construction Loan for Renovation of Affordable Housing Property in Wichita
WICHITA, KAN. — KeyBank Community Development Lending and Investment has provided a $10 million construction-to-permanent loan to Steele Properties for the acquisition and renovation of Shadyway Plaza in Wichita. Steele Properties, based in Denver, is a real estate investment company that acquires, rehabilitates and constructs affordable housing. Built in 1979, Shadyway Plaza serves elderly and disabled residents. The seven-story building includes 100 one-bedroom units, all of which are income-restricted under low-income housing tax credit regulations at 60 percent of area median income. Monroe Group Ltd., Steele’s sister company, will manage the property. Steele plans to spend $3.7 million on renovations, including a new roof and doors as well as upgrades to the security features, HVAC system, community room and common area lighting.
In addition to the $10 million loan, financing included 4 percent tax credits allocated by the Kansas Housing Resources Corp., tax-exempt bonds issued by the city of Wichita and $4 million of tax credit equity provided by the National Development Council. Sarah Geis of KeyBank structured the financing. The 4 percent tax credit is designed to subsidize 30 percent of the low-income unit costs in a project.