June 29, 2020

KeyBank Real Estate Capital (KBREC) arranged a $43.8-million construction loan and permanent financing on behalf of Carrollton-based Target Builders for the ground-up development of the Reserves at San Marcos, an affordable multifamily property in San Marcos. KBREC’s Community Development Lending and Investment (CDLI) team purchased the private activity tax-exempt bonds as part of the funding structure for the 376-unit project.
 
KBREC’s Commercial Mortgage Group secured the $43.8 million of permanent loan financing for the property via Freddie Mac that includes a $41-million tax-exempt loan and a $2.8-million taxable tail, both of which are fixed-rate loan structures. The forward-commitment period is 36 months. Upon successful conversion, the permanent loan term will be 15 years with a 35-year amortization schedule.
  
Robbie Lynn of KBREC’s Commercial Mortgage Group and Hector Zuniga of KBREC’s CDLI team structured the financing. CREA, LLC syndicated the 4% lower income housing tax credits.

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Tags: Affordable, Apartments & Multifamily, Development, Financing