Working on behalf of Hampstead Development Partners, a San Diego-based real estate company that focuses on developing and preserving affordable housing, KeyBank Community Development Lending and Investment secured acquisition, construction and permanent financing for a new affordable senior apartment community in Salt Lake City, Utah.
Originally built in 1916, the four-story building features 80 units and will be renovated by Hampstead. The unit mix features studios and one-bedroom floorplans averaging 416 square feet, and all units cater to residents earning 60% of the area’s median income. In addition, 20% of the units are reserved for non-seniors, while the rest will be restricted to residents aged 55 and older. Residents will also benefit from a new 20-year, Section 8 project-based Housing Assistance Payment contract.
Hector Zuniga and Jennifer Seamons of KeyBank structured the financing to include a $17.6 million loan that was funded by KeyBank’s purchase of $17.6 million in private-activity bonds issued by the Utah Housing Corporation. KeyBank also helped arrange $9.9 million in tax-credit equity from both 4% low-income tax credits and state historic building tax credits. There was also an Opportunity Zone equity investment, and the Redevelopment Agency of Salt Lake City provided another loan.
