A new affordable senior apartment community is being built in Cleveland, Ohio, thanks to $11.3 million in 9% tax credit equity provided by KeyBank Community Development Lending and Investment (CDLI). Garrett Square Apartments will include 49 units of affordable seniors housing in the Glenville neighborhood of Cleveland. The financing package comprised a $9 million construction loan and a $2.3 million permanent loan. Additional permanent financing sources include secondary soft loans totaling $1.7 million provided through the City of Cleveland’s American Rescue Plan Act, $900,000 from City Home, and $450,00 from the County ERA fund.
The site is currently occupied with a parking lot and vacant free standing retail building which will be razed prior to development. The project will be partially subsidized with 19 units (39% of the total units) supported by 20-year Project Based Vouchers provided through Cuyahoga Metropolitan Housing Authority (CMHA).
Volker Development Inc, the project sponsor, is owned and run by a team of experienced real estate development professionals headquartered in Wisconsin with a focus on affordable multifamily projects. Marous Brothers Construction is the general contractor for the project and is one of the leading construction firms in the Midwest.
The Famicos Foundation, a nonprofit organization with more than 20 years of experience managing affordable housing properties, will serve as the property management company of Garrett Square. Derek Reed and Greg Kiger of KeyBank CDLI structured the tax credit equity and debt financing for the transaction.
