KeyBank Closes $24.5 Million in Financing for the Renovation of 647 Affordable Housing Units in the Bronx

The rehabilitation of two properties in New York City will significantly improve residents’ quality of life and establish permanent affordability for these units, as part of the Permanent Affordability Commitment Together (PACT) program
Jan 25, 2019 4:50 PM ET
Press Release

CLEVELAND, January 25, 2019 /3BL Media/ — KeyBank Community Development Lending and Investment (CDLI) recently closed $24.5 million in total financing for the Gilbane Development Company’s acquisition and renovation of two New York City Housing Authority (NYCHA) properties, Highbridge Franklin and Twin Parks West, to preserve 647 units of permanent affordable housing in the Bronx, NY.  

Both properties are part of NYCHA’s plan to finance, renovate and manage 1,700 apartment units across 17 developments under its Permanent Affordability Commitment Together (PACT) program. PACT is New York City’s implementation of the federal Rental Assistance Demonstration (RAD) program.

“The renovation of Highbridge Franklin and Twin Parks West in the Bronx underscores the important work done by the NYCHA’s PACT program to preserve necessary affordable housing options in the city,” said Rob Likes, national manager of KeyBank’s CDLI team. “We are proud to provide the financing Gilbane Development Company needs to renovate and maintain more than 600 units of safe, decent and affordable housing for the community.”

“Through our PACT/RAD program, we have found a new answer to bring immediate fixes to our residents’ homes and address NYCHA’s $32 billion repair need. We are thrilled to work with our partners, KeyBank and Gilbane, as we take big steps to convert Highbridge Franklin and Twin Parks West to the Section 8 program, effectively bringing significant improvements for more than 600 Bronx families,” said NYCHA interim chair and CEO Stanley Brezenoff. “Under the leadership of Mayor De Blasio, the Authority will continue to shepherd its expansion of PACT/RAD to transform 62,000 NYCHA apartments across the city by 2028.”

Residents at Highbridge Franklin and Twin Parks West will have access to a range of supportive services through Bronxhouse, which offers youth services, housing assistance, workforce development, healthcare education and provision, homeless services, immigration services and assistance in accessing public benefits.

“At Gilbane, we focus on developing housing options that are community-driven and cost effective,” said Ed Broderick, president and CEO at Gilbane Development Company. “Our expertise in highly skilled community development projects aligns with KeyBank’s comprehensive financing solutions. We are proud to partner with the bank to improve housing options for residents at Highbridge Franklin and Twin Parks West.”

Highbridge Franklin includes the tenant-in-place rehabilitation of 14 buildings with 336 units and Twin Parks West includes the tenant-in-place rehabilitation of 311 housing units. Long-term, both properties will benefit from building envelope and façade renovations, installation of sustainable features like LED lighting, new mail boxes, new security systems, landscaping, refreshed community spaces and interior unit renovations that introduce energy star appliances and new windows.

“The CDLI platform makes it possible for Gilbane Development Company to work closely with NYCHA on the physical improvement of critical housing options in New York City,” said Kyle Kolesar, senior vice president and senior banker on KeyBank’s CDLI team who worked on the financing. “Together, our work will support community needs and protect the long-term quality and affordability of both properties.”

About Key Community Development Lending/Investment

KeyBank Community Development Lending and Investment (CDLI) helps fulfill Key’s purpose to help clients and communities thrive by financing projects that stabilize and revitalize communities. Experts in complex tax credit lending and investing, Key is one of a handful of affordable housing lenders in the country with a platform that brings together balance sheet, equity, and permanent loan offerings. For its ability to lend to, invest in, and serve its communities – especially low-to-moderate income communities – KeyBank has earned nine consecutive “Outstanding” ratings on the Community Reinvestment Act exam, from the Office of the Comptroller of the Currency.

About the New York City Housing Authority (NYCHA)

NYCHA’s mission is to increase opportunities for low- and moderate-income New Yorkers by providing safe, affordable housing and facilitating access to social and community services. Almost 400,000 New Yorkers reside in NYCHA’s 325 public housing developments around the five boroughs, and another 235,000 receive subsidized rental assistance in private homes through the NYCHA-administered Section 8 Leased Housing Program. For more information, visit http://www.nyc.gov/nycha and for regular updates on NYCHA news and services, connect with us via http://www.facebook.com/NYCHA and www.twitter.com/NYCHA.

About Gilbane Development Company

Gilbane Development Company is the real estate development, investment and property management arm of Gilbane, Inc, a private holding company in its fifth generation of family ownership and management. Our goal is to serve as a single resource for navigating the tangled web of variables associated with real estate development, construction, financing, operations, and management. Gilbane Development Company has been creating and implementing successful real estate programs for public, private and non-profit clients throughout the United States for four decades.  With more than $7 billion in total development and over 7,500 units of housing delivered, our breadth of affordable housing communities ranges from LIHTC and Section 8 properties to large-scale, mixed-income, and mixed-use properties.  To learn more, visit www.gilbaneco.com/development.

About KeyCorp

KeyCorp's roots trace back 190 years to Albany, New York. Headquartered in Cleveland, Ohio, Key is one of the nation's largest bank-based financial services companies, with assets of approximately $139.6 billion at December 31, 2018. Key provides deposit, lending, cash management, and investment services to individuals and businesses in 15 states under the name KeyBank National Association through a network of over 1,100 branches and more than 1,500 ATMs. Key also provides a broad range of sophisticated corporate and investment banking products, such as merger and acquisition advice, public and private debt and equity, syndications and derivatives to middle market companies in selected industries throughout the United States under the KeyBanc Capital Markets trade name. For more information, visit https://www.key.com/. KeyBank is Member FDIC.

Media contact: Laura Mimura, laura.mimura@key.com, 216.471.2883

###