KeyBank Partners With Related Companies and Provides $87 Million in Financing for the Revitalization of Two Affordable Housing Developments in Cincinnati

The acquisition and rehabilitation of the Avondale Properties and Alms Hill Apartments will ensure the availability of long-term affordable housing options for the larger Avondale Community
Dec 7, 2018 8:00 AM ET
Press Release

CINCINNATI, December 7, 2018 /3BL Media/—KeyBank Real Estate Capital and KeyBank Community Development Lending and Investment (CDLI) have provided a total of $87 million in financing to Related Companies, for the acquisition and rehabilitation of more than 400 affordable housing units in Cincinnati, OH.

Avondale Properties is a Section 8 portfolio with four residential family developments known as Burton Apartments, Entowne Manor, Founders Home and Georgia Morris, containing 209 units that are scattered along a main thoroughfare in the Avondale neighborhood. Alms Hill Apartments is comprised of one building with 200 affordable units. Related Affordable, the affordable housing division of Related Cos., is the largest preserver of affordable housing in the nation and plans to keep all 409 units as affordable for families earning up to 60% of area median income (AMI).

Between the two developments KeyBank provided $21 million in Low-Income Housing Tax Credit (LIHTC) equity, $38 million in construction financing and $28 million Fannie Mae M-TEB forward-commitments. The tax-exempt bonds were issued by the Ohio Housing Finance Agency. KeyBanc Capital Markets (‘KBCM’) underwrote the publicly offered tax-exempt bonds.

“The CDLI team at KeyBank is committed to the construction or preservation of affordable housing options across the country,” said Victoria O’Brien of the CDLI team. “The planned renovation of these properties will meet a critical need in the Cincinnati area by preserving and significantly improving the condition of affordable housing.”

“KeyBank’s powerful financing platform makes projects like this possible,” added Dirk Falardeau of the KeyBank Real Estate Capital group. “We are proud to work with best in class operator, Related, to enable the preservation of much-needed affordable housing options in Cincinnati.”

Both properties are more than 43 years old and Related plans to make renovations to improve the overall quality of life for residents and plans to upgrade access controls and security systems, enhance resident amenities, make upgrades to the elevator and fire alarm systems, replace the boiler systems and improve accessibility access. In-unit renovations will include improvements to the kitchens, bathrooms, flooring and interior doors.

“Related Affordable has preserved tens of thousands of affordable housing units across the country and has never taken a single unit to market rate. This is a promise we will once again make to the Cincinnati community for the Avondale Properties and the Alms Hill Apartments,” said David Pearson, senior vice president at Related Affordable. “We are known for our commitment to community building, and because of partners like KeyBank, we are able to provide long-term affordable housing to the thousands of Americans who need it most.”

O’Brien and Kyle Kolesar of Key’s CDLI team, Falardeau of KeyBank Real Estate Capital and Sam Adams of KeyBanc Capital Markets arranged the financing.

About KeyBank Real Estate Capital

KeyBank Real Estate Capital is a leading provider of commercial real estate finance. Its professionals, located across the country, provide a broad range of financing solutions on both a corporate and project basis. The group provides interim and construction finance, permanent mortgages, commercial real estate loan servicing, investment banking and cash management services for virtually all types of income producing commercial real estate. As a Fannie Mae Delegated Underwriter and Servicer, Freddie Mac Program Plus Seller/Servicer and FHA approved mortgagee, KeyBank Real Estate Capital offers a variety of agency financing solutions for multifamily properties, including affordable housing, seniors housing and student housing. KeyBank Real Estate Capital is also one of the nation’s largest and highest rated commercial mortgage servicers.

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 KeyBanc Capital Markets

KeyBanc Capital Markets is a leading corporate and investment bank providing capital markets and advisory solutions to dynamic companies capitalizing on opportunities in changing industries. Our deep industry expertise, broad capabilities and unique ideas are seamlessly delivered to companies across the Consumer & Retail, Diversified Industries, Healthcare, Industrial, Oil & Gas, Real Estate, Utilities, Power & Renewables, and Technology verticals. With over 800 professionals across a national platform, KeyBanc Capital Markets has more than $30 billion of capital committed to clients and an award-winning Equity Research team that provides coverage on over 700 publicly-traded companies. KeyBanc Capital Markets is a trade name under which corporate and investment banking products and services of KeyCorp and its subsidiaries, KeyBanc Capital Markets Inc., Member FINRA/SIPC (“KBCMI”), and KeyBank National Association (“KeyBank N.A.”), are marketed. Securities products and services are offered by KeyBanc Capital Markets Inc. and its licensed securities representatives, who may also be employees of KeyBank N.A. Banking products and services are offered by KeyBank N.A.

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 $138.8 billion at September 30, 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 KeyBank is Member FDIC.

About Related Companies:

Related Companies is the most prominent privately-owned real estate firm in the United States. Formed over 40 years ago, Related is a fully-integrated, highly diversified industry leader with experience in virtually every aspect of development, acquisitions, management, finance, marketing and sales. Headquartered in New York City, Related has offices and major developments in Boston, Chicago, Los Angeles, San Francisco, South Florida, Washington, D.C., Abu Dhabi and London, and boasts a team of over 3,500 professionals. With over $50 billion in assets owned or under development including the 28-acre Hudson Yards neighborhood development on Manhattan’s West Side, Related was recently named to Fast Company Magazine’s list of the 50 Most Innovative Companies in the World. For more information about Related, please visit

About Related Affordable:

Related Affordable is the division of Related Companies that develops, acquires and preserves affordable housing throughout the nation. Affordable housing laid the foundation of Related Companies, and its broad portfolio of award-winning affordable and mixed-income developments demonstrates the company’s continuing ability to create affordable housing opportunities in a variety of geographically, economically and socially diverse neighborhoods. Related owns and operates a portfolio of more than 45,000 affordable and workforce housing units.