WASHINGTON (Nov. 4, 2024)—Leading financial services provider Merchants Capital today announced $46.6 million in financing for the acquisition of two affordable housing developments for Dominium, a  leading affordable housing owner, developer and manager. The acquisition financing was provided by Merchants Bank, parent company to Merchants Capital. Permanent and mezzanine loans totaling $28.3 million were secured for Villa Hermosa, a 288-unit multifamily development in Albuquerque, N.M., Dominium’s first property in the state. Similarly, more than $18.3 million was secured for Cholla Ranch Apartments, a 180-unit multifamily development in Buckeye, Ariz. Both properties are affordable, with rehabilitation and re-syndication of tax credits being planned. A $13 million tenant-in-place rehabilitation is expected to begin in spring of 2025 at Villa Hermosa with the re-syndication of tax credits. There will be upgrades to unit interiors and common area amenities. One hundred percent of Villa Hermosa’s units are currently restricted to 60% area median income (AMI) and the affordability will remain in place post re-syndication. Dominium will begin a $7 million tenant-in-place rehabilitation and tax credit re-syndication in early 2025 for Cholla Ranch Apartments. One hundred twenty-four units are currently restricted for tenants at 30%, 40%, 50% and 60% AMI; the remaining units are market rate. The re-syndication will render the project fully affordable, with the conversion of market-rate units to units restricted at 70% AMI. The other restrictions will remain in place. Founded in 1972, Dominium builds and manages high-quality affordable homes. The company owns and manages more than 40,000 units in 20 states.Villa Hermosa offers 48 one-bedroom units, 216 two-bedroom units, 24 three-bedroom units with washer and dryer connections and a balcony or patio. The property’s amenities include swimming pool, clubhouse, fitness center and secured gate access and has convenient access to Interstate 40. Cholla Ranch Apartments offers 2- and 3-bedroom units and a clubhouse, pool, spa, playground, covered parking, laundry facility, storage spaces, gym, BBQ/picnic area and courtyards. Located within the growing Phoenix Metropolitan area about 30 miles west of the center of Phoenix, the property is in proximity to employment opportunities in major industries that include aerospace, finance, healthcare, IT, manufacturing, and warehousing and distribution. “We appreciate the partnership of Merchants Capital in helping Dominium further its mission of persevering and building much-needed affordable housing across the United States,” said Mark Lambing, Dominium Vice President and Project Partner. “These two acquisitions enable us to preserve the affordability of nearly 475 apartment homes in Arizona and New Mexico, which will benefit these communities and their residents for years to come.” To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, X, LinkedIn and Instagram.

CARMEL, Ind. (Oct. 31, 2024)—Leading financial services provider Merchants Capital today announced more than $66.3 million in total financing for the new construction of Maple Block Flats, a 204-unit workforce housing project in Petoskey, Michigan, a growing vacation destination. Merchants Capital provided a $29.6 million Freddie Mac Unfunded Non-LIHTC Forward permanent loan for the development, and its parent company, Merchants Bank, provided a $36.7 million construction loan. Maple Block Flats is the first project in Michigan to receive Michigan State Housing Development Authority (MSHDA’s) Affordable Housing Tax Increment Financing (AHTIF), which accounts for $6 million of the $14 million in tax increment financing being granted for the development. More than $12 million was provided in state grants and loans, with strong support from Michigan Economic Development Corporation (MEDC); the Michigan Department of Environment, Great Lakes and Energy (EGLE); the City of Petoskey; the Emmet County Brownfield Redevelopment Authority and numerous local businesses. Maple Block Flats will feature seven garden-style apartment buildings with 18 studios, 72 one-bedroom units and 114 two-bedroom units. Fifty percent of the units will be restricted to residents who earn between 60% to 120% of the area median income (AMI). Ten percent of the total units will be income and rent restricted for those making less than 80% of the AMI. “Our construction loan closing is the culmination of over three years of pre-development work on a very challenging project,” said Jeff Smoke, Managing Director and Principal at Great Lakes Capital. “We were able to work with Merchants to close a complicated capital stack that involved incentives from five different government entities, with the MDSHA Missing Middle incentive being the most impactful. This is a catalytic project for Northern Michigan and our second in the region. We look forward to providing more large scale housing solutions for West Michigan communities, utilizing the state’s newly created housing development incentives.” Maple Block Flats is being developed by real estate development and private equity firm Great Lakes Capital, specialists in multifamily properties; including affordable housing, mixed income and market rate; medical office; general office and retail. The company has invested more than $1.9 billion in real estate projects throughout the Midwest and western United States. Each unit at Maple Block Flats will contain a washer/dryer, solid surface countertops, efficient HVAC and vinyl plank flooring. In addition to the clubhouse, residents will also have access to pickleball courts, a pool, playground and dog park. The development site spans 12.4 acres on the Bear River one mile from downtown Petoskey. A 30-month construction timeframe is estimated to complete in May 2026. To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, X, LinkedIn and Instagram.