KeyBank Secures $23.5 Million for Affordable Housing in Utah

Mon December 16, 2019 - West Edition #26
Utah Business

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KeyBank Community Development Lending and Investment (CDLI) has secured $23.5 million of construction and permanent financing for the Wasatch Residential Group (WRG), a real estate development, construction, finance and asset management company based in Salt Lake City to construct Arcadia Apartments II in Sandy, Utah.

The 177-unit affordable family housing apartment development, which will be limited to 60 percent area median income, will consist of 52 one-bedroom, 82 two-bedroom, and 43 three-bedroom units. The project is adjacent to Arcadia Apartments I, previously developed by WRG, and will share access to amenities including a pool, hot tub and fitness room.

The project was awarded a four-percent low-income housing tax credit (LIHTC), and Enterprise Community Partners, the equity investor, is providing $15.6 million in LIHTC equity. The project also was awarded private activity bonds, which were purchased by KeyBank as a private placement.

Sarah Geis of Key's CDLI team arranged the financing.

KeyBank has worked with WRG since the early 1990s on numerous multifamily, office and residential condominium properties.