KeyBank Leads $78M Construction Financing for Maine Apartments Project
Jones Street Investment Partners has secured $77.9 million of construction financing to build a multifamily asset in Southern Maine, Commercial Observer can first report.
KeyBank supplied a $70 million, floating-rate loan and Jones Street also received $7.9 million of additional preferred equity from another firm for its planned Seacoast Residences in Kittery, Maine, on property it acquired in December 2020. The loan term is 36 months with two 12-month extension options.
Colliers arranged the equity portion of the deal with a team led by Jeff Black, John Broderick, Sean Burke and Bryan Koop.
Located at 76 Dennett Road across the border from Portsmouth, N.H., the five-building garden-style apartment community will feature 282 units. Its amenities will include a swimming pool, a fitness center, a dog park, a sun deck and on-site nature trails.
Matt Ranalli, chief investment officer at Jones Street, said the property is in an area with limited rental agreement options while also being close to major employers such as Andover Healthcare, Portsmouth Naval Shipyard, CSI Engineering, Northwestern Mutual, and Sun Life Financial.
“Southern Maine and Southern New Hampshire is really very underserved with multifamily options and there is a lot of demand,” said Ranall, who noted that there is already a waiting list. “This garden-style apartment product in particular doesn’t exist as much around there.”
Construction is underway and slated for completion in early 2024.
Officials at KeyBank did not immediately return a request for comment.
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