KeyBank Community Development Lending and Investment provided $43.6 million in construction loans and arranged $7.6 million in permanent loans for the acquisition and rehabilitation of Lee Plaza in Detroit, Michigan. The 15-story, Art Deco historical landmark will be converted to affordable senior apartments. The building will include a total of 182 units, with 117 units restricted to individuals 55 years or older and 65 units available to families. All tenants are required to earn at or below 50% and 60% of area median income.
The project, which was acquired by the city and subdivided into three separate condo units, will be completed in three phases. KeyBank financed the first two phases, Lee Plaza I, floors 2-5 and Lee Plaza II, floors 6-10. The third phase Skyview, floors 11-15 has not closed. Kory Clark and Kyle Kolesar of KeyBank CDLI structured the financing.
The project received additional funding through Historic Tax Credit equity totaling $46.7 million, as well as low-income housing tax credit equity from other banks. The City of Detroit provided $27.7 million in soft financing and Invest Detroit and the Michigan State Housing and Development Agency (MSHDA) also contributed to the project. The sponsor and developers, Ethos Development and The Roxbury Group, are Detroit-based real estate development firms that have played a role in the redevelopment of the city’s downtown and its neighboring districts.
