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 Finances 111-Unit Affordable Housing in Oceanside, California

A new affordable housing development is taking shape in Oceanside, California, thanks to significant financing secured by KeyBank. The El Camino Real Apartments project will provide much-needed accommodations for families earning between 30% and 80% of the area median income (AMI). With construction currently underway at 2136 S. El Camino Real, the project aims to help address the housing shortage in the region.

Construction and Funding Details

The El Camino Real Apartments will consist of 111 units, which will include a combination of two- and three-bedroom apartments designed to cater to local families. KeyBank’s Community Development Lending and Investment (CDLI) has extended a generous financial package, comprising a $32 million tax-exempt construction loan and an additional $15 million taxable construction loan. Furthermore, a permanent loan in the amount of $27.8 million will be provided through one of KeyBank Commercial Mortgage Group’s (CMG) institutional investors.

Additional Financing Sources

In addition to KeyBank’s contributions, the project has successfully raised $32 million from the California Municipal Finance Authority, leveraging a multi-family housing private-activity bond issuance. It has also gained $16 million in federal low-income housing tax credit equity, courtesy of WNC, and $12.9 million from the City of Oceanside’s state housing tax credit program through Monarch Private Capital. With a total construction cost estimated at $56 million or about $500,000 per unit, this development is positioned to make a significant impact on local housing availability.

Community Benefits

The design of the El Camino Real Apartments includes vital community features, such as a leasing office and approximately 6,500 square feet of common space that provides outdoor recreation areas and central laundry rooms accessible on every floor. Furthermore, the property will reserve 30 units specifically for residents with developmental disabilities, ensuring accessibility for all community members.

Supportive Services and Features

To enhance the quality of life for residents, supportive services will be offered by Mission Neighborhood Centers. These services include educational programs, workforce development initiatives, homelessness prevention strategies, and social services aimed at fostering a thriving community. The development’s strategic location offers residents excellent transportation access and situates them near essential community amenities, such as schools.

Regulatory Approval and Expectations

The City of Oceanside’s City Council has unanimously approved the necessary financing for this project, expressing high expectations for a walkable community design that encourages a vibrant neighborhood atmosphere. With the area median income in San Diego County recorded at $119,500 for 2024, the project seeks to establish accessible housing options for low-income families, reflecting a commitment to meet community needs.

Proven Experience

The development is being built by Mirka Investments, a real estate development firm with a strong track record of creating affordable multifamily housing communities across California. The firm’s dedication to developing sustainable housing solutions positions this project as a promising initiative in addressing the significant housing challenges faced by families in Oceanside and the surrounding area.

As construction progresses, the El Camino Real Apartments will serve as a critical step toward addressing the housing crisis in Oceanside while providing residents with quality living spaces and essential support services.

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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