September 24, 2018
We’re excited to close our first Multifamily loan on Native American tribal lands—working with KeyBank and their sponsor TWG Development, affiliated with the Kalispel Tribe. Salish Flats, in Washington’s Spokane County, is a forward rate lock deal for new construction—that allows the Borrower to hedge their interest rate risk. Projects like this are part of our commitment to preserve affordable housing and help underserved communities through Duty to Serve.
“KeyBank is very proud to work with Freddie Mac on our first workforce housing multifamily project on Native American Tribal land,” said Jeff Rodman of KeyBank Real Estate Capital. “This additional housing will continue to help the Kalispel Indian Tribe accomplish its goal of providing quality and safe housing for its families.”
The $22 million loan will fund a 216-unit mixed-income development, with six apartment buildings, on land that will be ground-leased by the Kalispel Tribe. Income and rent restrictions in the ground lease mean that 20 percent of the units will be reserved for residents earning up to 80 percent of Area Median Income (AMI), while the remaining will be rented at market rates.
The 10-year loan has a 30-year amortization at 80 percent maximum LTV and a 1.25x minimum DCR following the two-year forward commitment. Because of our commitment, the Borrower knows what their interest rate will be for the term of their permanent loan—especially important in a rising interest rate environment.
Amenities include a pool, volleyball court, dog park, basketball court, and gym, as well as a clubhouse, conference room and theater. The community is part of the master development plan for the Northern Quest Resort & Casino, owned and operated by the Kalispel Tribe.
“This is an exciting project for us,” said Shaun Smith, Targeted Affordable Production senior director. “Salish Flats shows our breadth and reach—and the ways we’re branching out to serve every corner of the market.”
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