Cleveland-based bank backs history-making FHA loan

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A Midwestern lender has helped secure what it says is one of the largest loans in the history of the U.S. Department of Housing and Urban Development.

KeyBank Real Estate Capital announced that it has secured some $127 million in Federal Housing Administration financing. Those dollars will go to the 499-bed Upper East Side Rehabilitation and Nursing Center, a skilled care provider in New York City. The Cleveland-based commercial real estate backer says this is the largest single-asset financing ever ensured under Housing and Urban Development's FHA 232 program, according to an announcement.

Upper East Side Rehab will use the loan proceeds to pay off an interim acquisition bridge loan that KeyBank provided to fund some $7 million in capital improvements to its property.