KeyBank Secures $25.3 Million of Financing for Two Multifamily Housing Properties in Albany, NY
- None.
- None.
Insights
The securing of a $25.3 million refinancing for two multifamily properties by KeyBank Real Estate Capital (KBREC) is a strategic financial move that can have ripple effects on the housing market in Albany, New York. The refinancing, which includes a $14.2 million Fannie Mae fixed rate loan and an $11.1 million Freddie Mac fixed rate loan, is significant for several reasons.
Firstly, the commitment to affordable workforce housing aligns with broader economic objectives to provide housing for individuals earning below 80% of the Area Median Income (AMI). This initiative can stimulate local economic growth by ensuring that workers have access to affordable housing, which in turn can attract and retain a stable workforce in the area. Secondly, the inclusion of commercial space within the 930 on Broadway property offers diversified income potential, which can enhance the financial stability of the investment.
From an investor's perspective, the fixed-rate nature of the loans mitigates interest rate risk, providing a predictable cash flow scenario. This stability is appealing in an environment where interest rates can fluctuate. Additionally, the refinancing helps to improve the debt profile of Redburn Development Partners by potentially lowering debt servicing costs and extending the maturity of liabilities, which is a positive indicator for the company's financial health.
The refinancing deal spearheaded by KBREC for Redburn Development Partners reflects a strategic emphasis on multifamily and student housing properties, which are key segments of the real estate market. The multifamily sector, particularly affordable workforce housing, is increasingly important due to the growing demand for reasonably priced living options in urban areas.
Furthermore, the student housing component, represented by the Astro Apartments refinancing, is noteworthy. Its proximity to the State University of New York (SUNY) Albany campus makes it a valuable asset, as student housing demand tends to be consistent and somewhat insulated from broader market fluctuations. The garden-style complex offers a desirable living arrangement for students, which could ensure high occupancy rates and steady revenue streams.
This refinancing can be seen as a barometer for the health of the real estate market in Albany, indicating confidence in the long-term viability of multifamily and student housing investments. It also underscores the role of government-sponsored enterprises like Fannie Mae and Freddie Mac in supporting housing initiatives.
The refinancing of these two multifamily properties by KBREC has implications for the local economy in Albany, New York. Affordable housing is a critical factor in economic development as it can impact labor market dynamics, consumer spending and overall urban growth. By preserving affordable workforce housing, the initiative supports the economic stability of low-to-moderate-income families, which can lead to increased disposable income and consumer spending in the local economy.
Moreover, the presence of commercial space within the 930 on Broadway property creates opportunities for small businesses, which are the backbone of local economies. These businesses can benefit from the increased foot traffic and the economic multiplier effect that comes with a stable residential community.
The long-term economic benefits of such investments include potential job creation during the construction or renovation phases, as well as ongoing employment opportunities through property management and commercial activities. However, it's also important to monitor the balance between affordable housing and market-rate units to ensure that the needs of all income groups are being met without causing unintended consequences, such as displacement or gentrification.
NORTHAMPTON, MA / ACCESSWIRE / March 13, 2024 / KeyBank:
Financing for two multifamily properties preserves affordable workforce housing
KeyBank Real Estate Capital (KBREC) secured
KeyBank secured a
Redburn Development Partners has agreed to set aside 50 percent of the units to preserve workforce housing for individuals earning
KeyBank also arranged a
Dirk Falardeau and Mark Flanders of KBREC Commercial Mortgage Group structured 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 financing, 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.
Astro Apartments
View additional multimedia and more ESG storytelling from KeyBank on 3blmedia.com.
Contact Info:
Spokesperson: KeyBank
Website: https://www.3blmedia.com/profiles/keybank
Email: info@3blmedia.com
SOURCE: KeyBank
View the original press release on accesswire.com
FAQ
What is the total amount of financing secured by KeyBank for the two multifamily properties in Albany?
What type of loan did KeyBank secure for 930 on Broadway?
How many units does 930 on Broadway have?
What is the purpose of setting aside 50% of the units in 930 on Broadway?
Where is Astro Apartments located?
What type of units does Astro Apartments offer?
Who structured the financing for the two multifamily properties?
