Gilbane JV Receives $42M Loan for Affordable Housing
A JV led by Gilbane Development Company closes on refinancing with KeyBank for NYCHA property in the Bronx.
NEW YORK CITY—A joint venture development team including Gilbane Development Company, Kraus Management, Apex Building Group and Dantes Partners closed $42 million in Fannie Mae refinancing for the second phase of renovations at Twin Parks West. The apartments are New York City Housing Authority property.
The loan is refinancing existing debt on the property which is located at 365 Ford St. in the Bronx. The lender is KeyBank Community Development Lending and Investment.
The rehab of the 311 units of affordable housing is part of NYCHA’s plan to finance, renovate and manage 62,000 units on a rolling basis by 2028 under the Permanent Affordability Commitment Together program.
The 10-story apartment building will be restricted by a new 20-year Section 8 Housing Assistance Payment (HAP) contract.
Tabare Borbon of KeyBank’s community development lending & investment team arranged the fixed-rate financing with a 15-year term, five-year interest-only period and 35-year amortization schedule.
In January 2019, KeyBank and the same joint venture development team closed on $24.5 million for the first phase of acquisition and renovation financing. In that deal, KeyBank provided financing for two NYCHA properties: Twin Parks West and Highbridge Franklin also in the Bronx. Those renovations included work on the building envelopes, façade, installation of LED lighting, new mailboxes, new security systems, landscaping, community spaces and providing Energy Star appliances and new windows.