CLEVELAND, OH / ACCESS Newswire / August 28, 2025 / KeyBank Community Development Lending and Investment (CDLI) provided a $13 million construction loan to finance the new construction of Hawthorne Heights, an 86-unit affordable senior housing project located in Gainesville, Florida. KeyBank Commercial Mortgage Group (CMG) also arranged a $6.53 million Freddie Mac permanent loan for the project.
Hawthorne Heights will serve seniors aged 62 and up with five apartment homes specifically set aside for individuals with special needs. The five-story building will be constructed on a 2.907-acre site and will provide high-quality, affordable housing for lower-income households. The development will set aside three apartments (3.5%) for households earning 22% of the area median income (AMI), nine apartments (10.5%) for households earning 40% or below the AMI and 74 apartments (86%) for households earning 60% or below the AMI.
The sponsor, National CORE, is an experienced nonprofit developer with ownership of more than 105 properties and serving more than 30,000 residents across California, Florida and Texas. National CORE is rated A+ by S&P as of November 2024, demonstrating the organization's strong financial position and development expertise.
The project secured additional funding from Red Stone, providing Low Income Housing Tax Credit (LIHTC) equity and bonds from Florida Housing Finance Corporation. The property qualifies for real estate tax abatement, which provides tax exemption for nonprofit-owned properties that commit to using it for providing affordable housing for at least 99 years.
Hawthorne Heights will feature high-quality amenities, including a community room, covered terrace, clubhouse, fitness center, business center, two elevators, in-unit washer/dryer connections, luxury vinyl tile flooring, and stainless steel appliances. Services include 24-hour support, assistance with light housekeeping, grocery shopping, laundry, daily activities, and computer training, all at no additional cost to the residents.
The property will be managed by The CT Group, which has more than thirty years of experience in affordable and low-income housing management. The CT Group currently manages 926 units across 12 properties in Florida, including Hampton Court, a 42-unit Section 8 property in Gainesville.
Completion of Hawthorne Heights is anticipated by November 2026. The lease-up period is expected to commence in August 2026, with stabilization projected for July 2027.
Matthew Haas and Cathy Danigelis of KeyBank CDLI structured the financing. Hector Zuniga Jr. and Rod Reynolds of KeyBank CMG arranged the permanent loan.
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 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 $185 billion at June 30, 2025.
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.
###
CONTACT:
Laura Mimura
216-471-2883
Laura_J_Mimura@KeyBank.com
KEY MEDIA
NEWSROOM:
Key.com/newsroom
View additional multimedia and more ESG storytelling from KeyBank on 3blmedia.com.
Contact Info:
Spokesperson: KeyBank
Website: https://www.3blmedia.com/profiles/keybank
Email: info@3blmedia.com
SOURCE: KeyBank
View the original press release on ACCESS Newswire:
https://www.accessnewswire.com/newsroom/en/banking-and-financial-services/keybank-provides-19.5-million-of-financing-for-affordable-senior-hou-1066584
