A senior apartment community in Dayton, Ohio is getting a substantial renovation with the help of financing from a variety of sources. The building is a federal historic site, originally built in 1929 as the Dayton Biltmore Hotel. It converted to affordable senior living in 1981 and currently features 230 units in 18 stories, with over 23,000 square feet of communal space and 14,000 square feet of commercial space. According to county records, Related Companies, a New York City-based developer, purchased the building in August 2020 for $4.2 million as part of a larger $590 million transaction for 51 affordable housing properties formerly owned by Aimco.
Now, Related Companies and not-for-profit and faith-based partner St. Mary Development Corp. is planning an extensive renovation which will focus on environmental sustainability, historic preservation, amenity improvements, unit and common area upgrades, a new fitness center and clinic areas for residents to see receive physical therapy from visiting nurses. That project should cost approximately $18.5 million, or $80,400 per unit.
The owners will participate in Fannie Mae’s Green Rewards Program with a green improvement budget of $1.5 million and in Fannie Mae’s Healthy Housing Rewards Enhanced Resident Services Program. KeyBank Real Estate Capital’s Commercial Mortgage Group also helped secure a $16 million fixed-rate Fannie Mae loan. In addition, KeyBank’s Community Development Corporation provided $16 million of combined low-income housing tax credit and historic tax credit equity. With that equity, the Housing Assistance Program contract was renewed for a new 20-year term.
There is also a partially assumed loan, existing reserves and a deferred developer fee. Other entities involved in the financing were the Dayton-Montgomery County Port Authority, which provided a tax-exempt bond volume cap, with KeyBanc Capital Markets serving as bond underwriter, and the Ohio Housing Finance Agency, which allocated the low-income housing tax credits.
Finally, KeyBank Community Development Lending and Investment (CDLI) secured a $6 million equity bridge loan. Kyle Kolesar and Victoria O’Brien of the CDLI team and Tabare Borbon of KeyBank’s Commercial Mortgage Group structured the financing.
