July 27, 2020
KeyBank Community Development Lending and Investment (CDLI) provided a tax-exempt construction and permanent bond loan of $11.3 million to Denver-based Steele Properties to acquire and renovate the Somerset Tower Plaza, an affordable senior housing property in Wichita, KS. Sarah Geis and Tim Gerstmann of KeyBank Real Estate Capital’s CDLI team structured the financing.
The city of Wichita issued the bonds, while the National Development Council provided $4.2 million of low-income housing tax credit equity.
Originally constructed in 1979, the seven-story Somerset Tower Plaza comprises 100 one-bedroom apartments located two miles from the Wichita CBD. The renovation will include exterior upgrades and life-safety improvements.
The project will benefit from a U.S. Department of Housing and Urban Development Section 8 rental subsidy contract on all units, which will preserve the housing as affordable for very low-income tenants.
For comments, questions or concerns, please contact Paul Bubny