CLEVELAND—KeyBank has recently closed a transaction to provide New Markets Tax Credit financing to the $21 million second phase of the University Circle Uptown development in Cleveland. The second phase of the development will bring in several types of real estate including retail, traditional housing and student housing space for the Cleveland Institute of Art.
“University Circle Uptown is an unparalleled development that we are happy to have a hand in bringing to the Cleveland area,” says Kevin Nowak, the national equity investment manager of the Key Community Development Corporation. “While we are extremely proud of all of our work, we feel a special connection to the diversification that this development will bring, as it is right in our own backyard.”
In total, KeyBank officials say they have provided $9 million in NMTC loans and nearly $9 million in NMTC equity to the entire Uptown development, an effort led by a group of community-based stakeholders, including Case Western Reserve University. In addition, the Cleveland International Fund, a private equity fund that raises funds for local projects from foreign investors, has provided a $5 million loan.
MRN Ltd. has already begun construction on the second phase, and will build a mix of medical, educational and cultural facilities. The development will include about 50 units of dorm space for the art institute, providing nearly 130 student beds. As an infill development, University Circle Uptown will also promote a mixed-use concept for the neighborhood. The property will provide 40 additional units of housing and more than 20,000-square-feet of ground-level retail space, including a new Corner Alley bowling.
“Once complete, phase two of the Uptown development will bring people of all incomes and interests together in one central hub,” adds Nowak. “This standard of diversification is something that we sincerely believe in as a differentiator in the neighborhoods and communities that we serve.”