KeyBank Community Development Lending and Investment (CDLI) secured $104.6 million of financing for The NRP Group to develop two affordable multifamily housing properties in San Antonio:
$46.6 million for the 318-unit Seven07 Lofts
$60.6 million for the 348-unit Frontera Crossing
Seven07 will feature a mix of one- to four-bedroom units that will be restricted to those earning between 40% and 70% of the area median income (AMI). The 100% low-income housing tax credit (LIHTC) project, which will be co-developed with the San Antonio Housing Facility Corporation, will feature amenities in line with market-rate competitors, including a fitness center and pool.
The $32.1 million tax-exempt construction-to-permanent loan and the $14.5 million taxable equity bridge loan are 36-month terms, and the permanent loan is for a 15-year term, amortizing for 40 years after conversion. KeyBank will purchase bonds issued by the Las Varas Public Facility Corporation and make the loan to NRP.
Frontera will comprise 13 three-story residential buildings, a freestanding laundry center and maintenance shop, and a community building. All units will be restricted to those earning 40% to 70% of the AMI. The unit mix includes one-, two-, three- and four-bedroom floor plans.
CDLI will be a co-lender on a $33.7 million tax-exempt construction loan that will be converted into a permanent loan and a $16.6 million taxable equity bridge loan. KeyBank will purchase its pro-rata share of tax-exempt bonds issued by Las Varas Public Facility Corp. and make the loan to NRP. Upon conversion, KeyBank will purchase the other co-lender’s share of the $33.7 million tax-exempt bonds and convert them to a $33.7 million permanent loan. The $16.6 million equity bridge loan will be repaid from low-income housing tax credit equity.
Jason Arechiga, NRP’s senior vice president of development, is proud of both developments and looks forward to contributing to the positive growth in San Antonio.
“With these two community developments, NRP will bring more than 650 affordable multifamily apartment homes to areas of our city seeing monumental growth,” Arechiga says.
Kyle Kolesar of KeyBank’s CDLI team structured the financing for both properties.
The NRP Group is a vertically integrated developer, owner, builder and manager of best-in-class multifamily housing based in Cleveland.