Key Bank provides financing for Lawrence Avenue Apartments acquisition.
POTSDAM – As expected, KeyBank Real Estate Capital has provided a $15 million loan for the acquisition of Lawrence Avenue Apartments, a 137-unit multifamily property in Potsdam in a deal with owner Chason Affinity, Inc. of Buffalo, and an acquisition partnership between Community Preservation Partners (CPP) and Rochester’s Cornerstone Group.
Lawrence Avenue Apartments is being sold to developers who will rehabilitate not only the eight apartments damaged by fire in January but also renovate the rest of the complex.The St. Lawrence County Industrial Development Agency is helping with financing, issuing up to $18 million in multi-family housing revenue bonds for the project, with Key Bank’s Key Community Development providing the capital.
Key’s investment along with St. Lawrence County Industrial Development Agency involvement will allow for a lower interest rate to the developers buying the six-building complex on Debra Drive in Potsdam, in consideration of the affordable-housing nature of the apartments, the permanent job-retention and construction job creation aspects of the project, and the general benefit to the community, said John Fraser, senior project manager for CPP.
Fraser said while up to $18 million in bonds will be available, they will probably use only about $12 million.
The acquisition of the complex, revealed last month, was a surprise to tenants and others who were expecting Chason to begin work to rehabilitate several apartments in one building that were damaged in a January fire.
Chason did not return requests for comment on the deal.