KeyBank provides $92.9M for SoLa Impact's 166-unit South LA project

KeyBank Community Development Lending and Investment has provided $92.9 million of financing for Broadway & Imperial, a 166-unit affordable housing development in South Los Angeles by SoLa Impact, and the package cuts against this publication's argument that banks are ceding the apartment debt stack as maturities roll into extensions and rescue capital.

KeyBank CDLI supplied a $43.8 million construction loan and an $18.1 million federal Low-Income Housing Tax Credit equity investment, while Key Commercial Mortgage Group arranged a $31 million Fannie Mae MTEB permanent loan and KeyBanc Capital Markets underwrote a $31 million public bond issuance as part of the structure. Matthew Haas and Eileen Tran of KeyBank CDLI and Shana Daby of Key Commercial Mortgage Group arranged the financing, and Alex Stekler of KeyBanc Capital Markets marketed the bonds.

The four disclosed figures sum to $123.9 million, well past the $92.9 million total, but the three that reconcile — construction loan, equity, permanent loan — leave the bond issuance looking like the funding side of the same permanent loan rather than a fourth layer. The coverage presents the bonds only as part of the structure, so that overlap is inference, not established fact.

The disclosed financing comes to roughly $560,000 a unit, with the construction loan alone at $264,000 a unit and running more than twice the size of the tax-credit equity, so debt carries the build. The permanent piece is a Fannie Mae execution funded through a public bond sale, keeping the take-out away from the bank's balance sheet.

Robert Likes, president of KeyBank CDLI, tied the transaction to Los Angeles's shortage of affordable housing and said the project "will bring 166 affordable homes to South Los Angeles."

Nothing disclosed is mezzanine, preferred equity, or private credit, and in tax-credit affordable housing — where an agency execution and a bond sale do the heavy lifting — a single bank can still hold every layer of the financing.

The coverage does not explain the $12.8 million gap between the $43.8 million construction loan and the $31 million take-out, the piece of the structure conversion math has to close.