KeyBank Closes $47M in Financing for Oceanside Affordable Housing Development

KeyBank Community Development Lending and Investment (CDLI) has provided a total of $47 million in construction financing for a new affordable housing community in Oceanside, California. The project, El Camino Real, will be developed by Mirka Investments at 2136 S. El Camino Real and is aimed at serving low- and moderate-income families.

The financing package includes a $32 million tax-exempt construction loan and a $15 million taxable construction loan. In addition, a $27.8 million permanent loan will be privately placed with an institutional investor from KeyBank’s Commercial Mortgage Group (CMG).

El Camino Real will consist of a four-story residential building with 111 apartments, offering a mix of two- and three-bedroom units reserved for households earning between 30% and 80% of the area median income (AMI). The property will include a 6,500-square-foot common area featuring a leasing office, community room, outdoor recreation areas, and laundry facilities on each floor.

Mission Neighborhood Centers will provide on-site supportive services, including educational programming, workforce development, homelessness prevention, and social services.

The project also secured a $32 million construction loan from the California Municipal Finance Authority through a Multifamily Housing Private Activity Bond issuance. Additional support includes $12.9 million in state tax credit equity from the City of Oceanside via Monarch Private Capital, and $16 million in federal Low-Income Housing Tax Credit equity from WNC.

Matthew Haas of KeyBank CDLI structured the overall financing package, while Hector Zuniga of KeyBank CMG arranged the permanent loan.

The El Camino Real development marks a significant investment in affordable housing along California’s coast, where rising rents and limited housing stock have intensified the demand for income-restricted residences.

By combining multiple sources of financing — including federal and state tax credits, private placement, and municipal bonds — the project demonstrates how complex funding structures are increasingly critical to delivering deeply affordable housing in high-cost areas.

Mission Neighborhood Centers’ involvement also adds value by providing wraparound services that help residents achieve long-term housing stability and economic mobility.

With California’s housing crisis still top of mind for policymakers and developers alike, projects like El Camino Real illustrate how public-private partnerships can expand access to housing for working families while integrating social services into the built environment. Construction is expected to proceed swiftly, with units anticipated to open to residents in late 2026.

Originally reported by Rebusiness Online.