KeyBank Community Development Lending and Investment Provides $41 Million of Financing for New Affordable Housing in Pittsburgh

CLEVELAND, February 18, 2025 /3BL/ – KeyBank Community Development Lending and Investment (CDLI) provided a $27 million construction loan and arranged a $14.4 million Private Placement permanent loan to finance the adaptive reuse of the First & Market office building. First & Market building will introduce 93 affordable senior housing units to Pittsburgh’s downtown, complete with accessibility features, sustainable building practices, and proximity to public transit, healthcare, and other downtown amenities.

The sponsor, Beacon Communities, held its groundbreaking for the project last month. The project is aligned with the City of Pittsburgh's greater objectives to transition underutilized office buildings to low-income housing, a resource with extremely low inventory in downtown Pittsburgh.

All 93 units will be restricted to a senior population (62+) and supported by a Section 8 Project-Based Voucher HAP contract through the Housing Authority of the City of Pittsburgh. The HAP contract will restrict 83 units to 50% area median income (AMI) and 10 units to 20% AMI. Twenty-eight units will meet Uniform Federal Accessibility Standards (UFAS), of which five will be restricted to 20% AMI and 23 to 50% AMI.  

Beacon Residential Management will provide on-site property management and resident services coordination. An on-site resident services coordinator will collaborate with various community resource providers to help residents meet their basic needs with rental, food, and transportation assistance. Additional supportive services will be provided based on the needs of the senior residents, including technology education, health education, social activities, health care coordination, financial literacy classes, money management resources, and mental and behavioral health services and support.

Seaver Rickert from KeyBank Community Development Lending and Investment and Leslie Meyers from Key’s Commercial Mortgage Group arranged the financing.

About KeyBank Community Development Lending and Investment 

KeyBank Community Development Lending and Investment (CDLI) finances projects that stabilize and revitalize communities across all 50 states. As one of the top affordable housing capital providers in the country, KeyBank’s platform brings together construction, acquisition, bridge-to-re-syndication, and preservation loans, as well as lines of credit, Agency and HUD permanent mortgage executions, and equity investments for low-income housing projects, especially Low-Income Housing Tax Credit (LIHTC) financing. KeyBank has earned 11 consecutive “Outstanding” ratings on the Community Reinvestment Act exam, from the Office of the Comptroller of the Currency, making it the first U.S. national bank among the 25 largest to do so since the Act’s passage in 1977. 

About KeyCorp 

KeyCorp's roots trace back nearly 200 years to Albany, New York. Headquartered in Cleveland, Ohio, Key is one of the nation's largest bank-based financial services companies, with assets of approximately $187 billion at December 31, 2024. Key provides deposit, lending, cash management, and investment services to individuals and businesses in 15 states under the name KeyBank National Association through a network of approximately 1,000 branches and approximately 1,200 ATMs. Key also provides a broad range of sophisticated corporate and investment banking products, such as merger and acquisition advice, public and private debt and equity, syndications, and derivatives to middle market companies in selected industries throughout the United States under the KeyBanc Capital Markets trade name. For more information, visit https://www.key.com/. KeyBank is Member FDIC.

About Beacon Communities

Beacon Communities LLC is a privately owned real estate firm that develops, acquires, invests in, and manages a wide range of multi-family housing. Their portfolio includes affordable housing, market rate housing and mixed income-housing. Their developments range from new construction to historic adaptive reuse, to the renovation of existing housing. They take on challenging developments and make them succeed. Their driving passion is to create well-designed, healthy homes that improve the quality of life of their residents and enhance the neighborhoods in which they are located. For more information about Beacon Communities LLC, please visit www.beaconcommunitiesllc.com