KeyBank Finances Affordable Housing Development in Oceanside, California

News Summary

KeyBank has secured financing for the El Camino Real Apartments in Oceanside, California, which will provide 111 affordable housing units for families. The project aims to address the housing shortage and includes supportive services for residents. The City Council has unanimously approved this initiative, highlighting its importance for the community by integrating essential amenities and housing options for low-income families.

KeyBank Financing Boosts Affordable Housing in Oceanside

A significant development for affordable housing is underway in Oceanside, California, as KeyBank has secured substantial financing for a new project, the El Camino Real Apartments. This initiative aims to provide housing solutions for families earning between 30% and 80% of the area median income (AMI), addressing a pressing need in the region.

The project is situated at 2136 S. El Camino Real and will consist of a total of 111 units, offering a combination of two- and three-bedroom apartments designed to accommodate low-income families. KeyBank’s Community Development Lending and Investment (CDLI) team is playing a pivotal role in this effort by providing a $32 million tax-exempt construction loan along with an additional $15 million taxable construction loan to help kickstart the development.

Furthermore, a permanent loan of $27.8 million will be facilitated through one of KeyBank’s Commercial Mortgage Group (CMG) institutional investors, ensuring a stable financial foundation for the project. In total, the estimated construction cost is around $56 million, translating to about $500,000 per unit.

The development is being carried out by Mirka Investments, a real estate development firm with a strong focus on affordable housing initiatives across California. The El Camino Real Apartments will also include a leasing office and approximately 6,500 square feet of common areas. These common spaces are expected to feature outdoor recreational areas and laundry facilities located on each floor, promoting community interaction and convenience for residents.

In addition to providing housing, the project will incorporate supportive services facilitated by the Mission Neighborhood Centers. These services will include educational programs, workforce development, and social services aimed at preventing homelessness and fostering stability among residents.

The financing landscape for the project is further strengthened by an additional $32 million construction loan received from the California Municipal Finance Authority through a multifamily housing private-activity bond issuance. The initiative also secured $16 million in federal low-income housing tax credit equity from WNC and $12.9 million in certificated credits from the City of Oceanside state housing tax credit program via Monarch Private Capital, showcasing a broad base of financial support from various stakeholders.

A significant aspect of the development is its dedication to inclusivity. The project includes provisions for residents with developmental disabilities, reserving 30 units specifically for this demographic. This commitment aligns with the city’s goals of fostering a diverse community environment in Oceanside.

Recognizing the ongoing housing crisis, the El Camino Real Apartments are designed with excellent transportation access and close proximity to essential community amenities, such as schools. The City of Oceanside City Council has unanimously approved the project financing, reflecting a shared vision of creating a walkable community where families can thrive.

As of 2024, it has been reported that San Diego County’s area median income stands at $119,500, with specific qualification thresholds set for low-income families, highlighting the necessity of such affordable housing developments within the region. Mirka Investments’ track record further assures stakeholders that the development will meet its objectives, providing stable, affordable living options for those in need.

The comprehensive financing structure and community-focused design of the El Camino Real Apartments represent a significant step towards alleviating the housing shortage in Oceanside and enhancing the quality of life for numerous families in the area.

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Additional Resources

• Housing Finance: KeyBank Financing Announcement
• REBusiness Online: KeyBank Provides $47M Financing
• CSR Wire: KeyBank Financing for Multifamily Housing
• Wikipedia: Affordable Housing
• Encyclopedia Britannica: Housing