Weekly Real Estate News
KeyBank has assembled $92.9 million in financing for Broadway & Imperial, a 166-unit affordable housing development planned for South Los Angeles.
The financing includes a $43.8 million construction loan and $18.1 million federal Low-Income Housing Tax Credit equity investment from KeyBank Community Development Lending and Investment. Key Commercial Mortgage Group also arranged a $31 million Fannie Mae MTEB permanent loan, while KeyBanc Capital Markets underwrote a $31 million public bond issuance.
SoLa Impact is developing the project at Broadway and Imperial Highway. Of the 166 residences, 164 will be income-restricted apartments and two will be manager units. The development will serve households earning between 30% and 70% of area median income.
A layered affordable-housing capital stack
The transaction illustrates the financing complexity behind large affordable developments. Construction debt funds the build, LIHTC equity supplies long-term project capital and the Fannie Mae execution provides permanent financing. The bond issuance is part of that structure rather than an additional 31 million dollars of project cost that should simply be added to the headline financing total.
Broadway & Imperial will consist of four- and five-story construction with a rooftop deck, community room, landscaped courtyards, bicycle storage and parking with electric-vehicle charging. LifeSTEPS is expected to provide resident services including financial-literacy, health and counseling programs.
SoLa Impact has focused its development and preservation work in South Los Angeles. The project is also located in an Opportunity Zone.
For lenders, the transaction is another example of affordable housing relying on multiple capital sources to make development economics work in a high-cost construction market. The $92.9 million package combines bank balance-sheet lending, federal tax-credit equity and agency permanent financing around one project.
The financing comes as Los Angeles continues to face an acute shortage of housing affordable to lower-income households. Whether projects such as Broadway & Imperial materially improve that imbalance depends on production at scale, but the transaction will add 164 restricted units to a market where new affordable supply remains difficult to finance and build.
