Loan Closings

CHICAGO – Financial services company Merchants Capital (MCC) today announces the closing of $102 million in combined debt and equity financing to support the redevelopment of Granada Homes, a historic affordable housing property located along the iconic River Walk in the heart of downtown San Antonio. Originally constructed in 1927 as the Plaza Hotel, the property currently is a mixed-use, 14-story high-rise housing underserved low- and very-low-income seniors. The financing for the project includes a $43 million Merchants Bank of Indiana (MBI) construction loan and $35 million in Merchants Capital syndicated tax credit equity. Merchants Capital also secured a forward commitment for $24 million from Fannie Mae for permanent financing with the mortgage-backed security being purchased by the AFL-CIO Housing Investment Trust (HIT). The innovative financing included one of the first executions of a new financial structure created by the HIT called a “Build to Bond,” which ensures that the project will be constructed with 100% union labor. Lee Oller “Completing this transaction in a record 60 days required the focus and attention of multiple disciplines across the Merchants product platform,” said Lee Oller, Executive Vice President of Merchants Capital’s Chicago office. “We are incredibly thankful to our developer and our long-term partnership with the AFL-CIO Housing Investment Trust, which brought the project to fruition.” Many observers feared that the building would be sold and converted into a high-end hotel or market-rate condos, displacing its elderly low-income renters. “Through this transaction, the San Antonio Building & Construction Trades Council will be able to keep the property, fully renovate it, create good union construction jobs with good pay, and make this historic building available as affordable housing for seniors for years to come,” said Chang Suh, the HIT’s CEO. “Together this allows the owners to provide strong benefits that stay in the community.” Julie Sharp "The Merchants Capital equity team was proud to provide $35 million in federal historic, state historic and federal low-income housing tax credit equity financing to revitalize this community, in a first-of-its-kind financing structure in partnership with the AFL-CIO Housing Investment Trust,” said Julie Sharp, Senior Vice President of Tax Credit Equity at Merchants Capital. “Our nimble financing structure allowed the project to close in record time, and further solidified Merchants as a single-point of execution for all aspects of debt and equity financing for affordable housing projects across the United States.” Granada Homes is comprised of 265 studio and one-bedroom units set aside for low-income elderly households. The detailed renovation plan includes upgrades to the finishes and offerings of all units, designed to specifically meet the needs of seniors. The redevelopment will also expand the affordable housing stock through the conversion of the currently under-utilized commercial space to additional affordable units. The loan will result in material improvements to the major building system and significant savings in operating costs. Community and amenity spaces will be upgraded and modernized. Financing for the property also includes a mark-up-to-market of the Section 8 Housing contract, an 8(bb) transfer of a Housing Assistance Payments (HAP) Contract and the issuance of enhanced vouchers, as well as a 100% ad-valorem tax exemption. “We are excited for the partnership with Merchants and the AFL-CIO Housing Investment Trust and look forward to enhancing and expanding affordable housing and good union jobs in San Antonio alongside our partner, San Antonio Building & Construction Trades Council,” said Victor Atkins and Pat Biernacki, the Principals of Canopy, the developer working in partnership with the local labor organization. “The Granada transaction required tremendous creativity within a tight closing time. We feel very fortunate to have found a partner in Merchants that brought the level of talent, commitment and resources to the table necessary to not only ensure transaction closing, but also the continuation of a five-decade legacy of quality, affordable senior living at Granada Homes.” Granada Trade Council Housing Inc. is a 501(c)(4) non-profit with the mission of providing rental housing to low-income elderly persons, directed by the San Antonio Building & Construction Trades Council. To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, Twitter and LinkedIn and Instagram. ###

CARMEL, Ind. – Financial services company Merchants Capital today announces it has secured $71 million in total financing for the Wildhorse Development, a market-rate, mixed-use luxury apartment and service retail complex located in Chesterfield, Missouri. The Wildhorse Development features 188 luxury units, a 15,000-square-foot Ruth’s Chris Steakhouse with a rooftop bar and 10,000 square feet of service retail. It is conveniently located 25 minutes outside of downtown St. Louis, a region known as an academic and corporate center for the biomedical sciences and home to some of the country’s largest privately held corporations. Great Lakes Capital finished construction on the asset in April 2021 and has leased to 100% occupancy in less than seven months. With the proceeds from the Merchants Bank of Indiana facilities, Great Lakes Capital paid off its existing construction loan, bought out Limited Partners from the original development and secured additional interest only for the property prior to the permanent financing takeout. “Great Lakes Capital presented us with this tremendous opportunity, and we were committed to structuring the financing to best fit their needs,” said Brian Shelbourne, Vice President of Originations at Merchants Capital. “With our team’s decades-long experience working exclusively on multifamily housing, we pride ourselves on our ability to provide customized financing solutions to meet the requirements of each unique transaction.” Great Lakes Capital, a real estate private equity firm, served as the sponsor of the project. “The Wildhorse Development is a signature, long-term asset for our team,” said Ryan Rans, Managing Partner of Great Lakes Capital. “It has been incredibly successful immediately out of the gate, and we’ve been thrilled to partner with Merchants Capital on the refinance. We look forward to working with them again on future deals, as we’ve always found them to be a creative, nimble and astute partner.” To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, Twitter, LinkedIn and Instagram.

CARMEL, Ind. – Financial services company Merchants Capital announces today it has provided $18.2 million in total refinancing for Eden Housing, a nonprofit that has partnered with local communities to develop or acquire more than 10,600 homes in communities throughout California. The proceeds will be used to rehabilitate two affordable housing communities in the state: Emerson Arms and Arroyo Vista. Located in the San Francisco-Oakland-Berkeley area, Emerson Arms is a 32-unit affordable apartment community with four one-bedroom units and 28 two-bedroom units within three residential buildings. All 32 units are covered by a long-term Option 5 HUD project-based Section 8 contract. The property was constructed in 1973 and last renovated in 2003. Rehabilitation plans include replacing the exterior podium and walkways that service each unit, new railings and exterior stairs, garage ceiling replacement/ventilation, traffic coating on walkways, roof and gutters replacement, window and sliding door replacement, building exterior painting and ADA compliant walkways. Secondly, Arroyo Vista is a 156-unit affordable apartment community located in Mission Viejo, Orange County, California, approximately 70 miles north of San Diego and 50 miles southeast of the Los Angeles central business district – an area in need of affordable housing. Constructed in 1995, the apartments have 36 one-bedroom units, 72 two-bedroom units, 40 three-bedroom units and eight four-bedroom units within nine two- and three-story residential buildings. All units are encumbered by a combination of rent and income restrictions ranging from 35% to 60% Area Median Income (AMI) through various regulatory agreements. Current resident amenities include on-site management, clubhouse, fitness center, playground, sports court, common laundry, pool and a spa. Rehabilitation plans include major plumbing upgrades throughout the entire property to address slab leaks, exterior stairs and railings, window replacement, carport and trash enclosure repairs, playground, in-unit HVAC, upgraded appliances and countertops and cabinets replacement. “It’s just as vital to preserve and recapitalize affordable housing as it is to produce it,” said Dwayne George, Executive Vice President, Head of Production at Merchants Capital. “With constraints on Private Activity Bond Volume Cap in state of California, Merchants is optimistic that partnering with key organizations such as Eden Housing to pilot creative debt solutions will complement California Housing Finance Agency (CalHFA) efforts to address the affordable housing crisis in the state of California.” Eden Housing currently serves a diverse population of 22,000 low-income residents from all cultures and backgrounds. The company services very low-, low- and moderate-income families, seniors, veterans, people living with physical, mental or development disabilities and the formerly homeless. “As we continue to face unprecedented times – where our portfolios are aging but we lack the variety of feasible financing solutions to address the physical needs – it is critical to have organizations like Merchants Capital that aim to step in and help affordable housing operators explore various solutions to meet our needs,” said Darnell Williams, Eden Housing Senior Director at Asset Management. “Like many affordable housing providers, we are feeling the implications of bond financing constraints. These two properties – although very different financial profiles – were each in need of a seven-figure capital infusion to buy us time before the next tax credit syndication is available. Dwayne and I began strategizing on possible loan products to address our needs and with his background in GSE financing, he was able to help us consider options that best suited each property. It has been a joy to work with him and his team on these deals.” To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, Twitter, LinkedIn and Instagram.

CHICAGO – The Chicago office of financial services company Merchants Capital recently secured more than $26 million in financing for the acquisition of Island Terrace, an affordable apartment complex in Chicago’s Woodlawn neighborhood. The project is located across from the planned Obama Presidential Center in Chicago. “We are proud to have served as the financing partner for this important project in Chicago,” said Emmett Donovan, Senior Vice President at Merchants Capital. “Merchants Capital is committed to preserving and expanding affordable housing options across the United States, and our work on this project strongly exemplifies that commitment.” After acquisition, the borrower, Preservation of Affordable Housing, Inc. (POAH), plans to syndicate the property with a tax credit structure utilizing both a 4% and 9% Low-Income Housing Tax Credit (LIHTC), making Island Terrace one of the first housing properties to utilize this unique type of financing. Upon syndication, all 240 units will be divided into two condominiums, with 178 units housed in the 4% LIHTC condo and 62 units in the 9% LIHTC condo. In addition to securing the acquisition bridge loan facility, Merchants Capital issued project term sheets for both the 4% and 9% LIHTC equity bridge loans to be used during the construction and renovation phase. “We are delighted to announce our purchase of Island Terrace. This is a crucial preservation opportunity given its location, and working with Merchants we can ensure its long-term affordability,” said Bill Eager, Senior Vice President at POAH. The syndication will ensure the long-term affordability of the project with the 20-year extension of the existing project-based Section 8 contract covering 88 units, the transfer and 20-year extension of a project-based Section 8 contract covering 44 additional units, an existing Chicago Low-Income Housing Trust Fund use agreement covering 11 units and a new Low Income Housing Tax Credit (LIHTC) use agreement restricting the remaining 99 units at the 60% and 80% area median income (AMI) levels utilizing income averaging. Renovation to Island Terrace is expected to begin in mid-2022, with a focus on improvements to major property systems and modernization of approximately $100,000 per unit. To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, Twitter, LinkedIn and Instagram.

CARMEL, Ind. – Financial services company Merchants Capital announces today it has secured a $35 million construction loan for Union at the Loop, an affordable, multifamily housing community coming to Lawrence, Kansas. Merchants Capital also acted as servicer for the $22.25 million Freddie Mac Tax Exempt Loan (TEL) forward permanent commitment. Union at the Loop, developed by The Annex Group, will be located at 3250 Michigan St. as the city’s newest affordable, 4% Low-Income Housing Tax Credit (LIHTC) property. The 248-unit property will house one-, two- and three-bedroom apartments for residents who earn up to 60% of the area median income (AMI), or an annual income of $35,800 to $57,300. “Due to Merchants Capital’s multi-layered debt products, we were able to offer and successfully secure construction and permanent financing for Union at the Loop. We are excited to partner with The Annex Group on this project that will provide much needed affordable housing options to the workforce families of Lawrence,” said Brian Emmons, Senior Vice President, Loan Operations for Merchants Capital. Notable amenities will include a business center and clubhouse, a fitness center, exterior storage, onsite management, picnic areas, a playground, video surveillance, walk-in closets and washer and dryers. The complex will be conveniently located to public transportation, grocery stores and restaurants. “When we started looking at the Lawrence area, we saw that almost all existing affordable housing communities had a wait-list of residents hoping to move-in,” said Kyle Bach, CEO of The Annex Group. “Because of the student population at The University of Kansas, there are both typical residents and university students in the rental market, causing a strain. We wanted to ease the need for affordable housing with a community that will feel like home to residents looking for conveniences, amenities and affordability.” Construction began in August 2021, and the property is expected to be open in October 2022. To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, Twitter, LinkedIn and Instagram.

CARMEL, Ind. – Financial services company Merchants Capital announces today it has secured $31.9 million in acquisition bridge loans and $57.8 million in seven separate 221(d)(4) loans for the Thetford Portfolio, a seven property low-income housing tax credit (LIHTC) 221(d)(4) pilot transaction in North Carolina. The deal was closed in partnership with Vitus, a national leader in preserving and enhancing affordable housing around the country. The North Carolina Thetford Portfolio consists of seven housing properties with over 90% Section 8 subsidy in addition to a number of budget-based rent increase properties on historical contracts from the Low-Income Housing Preservation and Resident Homeownership Act of 1990, which offered project incentives to preserve low-income rental properties. Merchants Capital provided the acquisition bridge loans to take down the seven properties at high loan-to-cost to facilitate the LIHTC executions, then closed on seven separate 221(d)(4) loans on the same day, simultaneously. “This seven-deal, same day closing for the North Carolina Thetford Portfolio is unprecedented with the Department of Housing and Urban Development (HUD),” said Merchants Capital Senior Vice President Matt Kaercher. “A single sub-rehabilitation LIHTC transaction is difficult enough for execution, but seven simultaneously requires a different subset of skills and persistence. The ability of all parties involved – from the borrower Vitus, HUD and our team at Merchants Capital – warrants the highest level of praise.” According to the National Low Income Housing Coalition, the U.S. has a shortage of over 6.8 million rental homes affordable and available to extremely low-income renters. Specifically, North Carolina has a shortage of 190,910 affordable rental homes available for low-income renters. The loan structure of seven new affordable housing developments will be a step in the right direction for the state. Additionally, during the project, Vitus closed a single bond issuance that saved the project money while pursuing the same day closing. “Vitus specializes in protecting existing affordable housing in communities with the greatest need. This was a unique transaction that enabled us to do so for seven properties at once. We are grateful for the guidance of the Merchants Capital team, the flexibility of our bond issuer Burlington Housing Authority and the cooperation of the many parties involved along the way in getting a deal of this complexity financed,” said Brooke Shorett, Director of Development Management for Vitus, the developer of the project. To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, Twitter, LinkedIn and Instagram. ###

CARMEL, Ind. – Financial services provider Merchants Capital today announces that it has formed a registered investment advisor, Merchants Asset Management LLC, and secured equity commitments totaling $165 million through a joint venture between an institutional investor and Merchants Bancorp. Evan Gibson Dean Ramsamooj The joint venture will purchase multifamily and healthcare commercial real estate loans from Merchants Capital’s parent company, Merchants Bank of Indiana. This venture will be managed by the newly formed investment advisor and initially operated by Merchants Capital’s Evan Gibson, Vice President of Debt Strategies; Terry Oznick, Senior Vice President and General Counsel; and Dean Ramsamooj, Vice President of Debt Strategies, while they continue to build out the investment advisory business. “This unique joint venture increases our ability to serve our top customers by increasing our lending capacity to them and expanding our product suite beyond the constraints of the bank’s balance sheet,” said Michael Dury, Merchants Capital President and CEO. “Moving forward, we can be more creative, efficient, and provide a better execution for our most valued clients.” Loans purchased by the venture will be financed by JPMorgan through a repurchase agreement that will allow for up to $600 million of loan capacity. Nomura Securities International, Inc. served as exclusive financial advisor and Arnold & Porter Kaye Scholer LLP acted as legal advisor to the venture. Today’s news comes on the heels of another milestone announcement by Merchants Capital’s Debt Strategies Group for the completion of a $262 million securitization of 15 workforce multifamily housing loans through a Freddie Mac-sponsored Q-Series transaction. The transaction with Merchants marked only the 15th deal completed under the Q platform, with Freddie Mac averaging just over two deals per year. To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, Twitter, LinkedIn and Instagram.

  SAINT PAUL, Minn. – The Saint Paul office of mortgage banking company Merchants Capital recently secured more than $55 million in total financing for the development of Maison’s Palmdale, an affordable housing property currently under construction in Palmdale, California. The property is the first in the state to be developed under recently passed legislation which allows for greater lot size density. To finance the property, Merchants Capital secured a $31.6 million Merchants Bank of Indiana (MBI) construction loan and $24 million in permanent financing through a 4% Low-Income Housing Tax Credit (LIHTC) Fannie Mae Forward Commitment and Fannie Mae Permanent Loan. The financing deal included both a taxable and tax-exempt component. Situated approximately 40 miles north of downtown Los Angeles, Maison’s Palmdale is comprised of 118 detached housing units featuring three-bedroom and two-bedroom units. The three-bedroom units include a two-car garage for residents, while the two-bedroom units have access to a designated off-street parking space. “Serving as the financier for this project shows Merchants’ commitment to advancing affordable housing across the nation,” said Marsha Goff, Executive Vice President at Merchants Capital’s Saint Paul office. “By capitalizing on the new zoning laws, we were able to maximize the development, bringing even more affordable housing options to such a desirable living area. We are grateful to have had the opportunity to work as a partner on this development, and we are excited to see continued growth in the affordable housing market across the state of California.” In total, Maison’s Palmdale brings 118 new units to the area with 100% affordability – 36 units are restricted to residents earning no greater than 50% of the area median income (AMI) and 81 units are restricted to residents earning no greater than 60% AMI. One unit is reserved as the manager’s unit. “Ravello is very excited to work with industry best in class partners Merchants Capital and WNC to provide affordable, single family dwellings to the local community,” said Phil Ram, CEO of Ravello Holdings, the developer of the project. "The California Dream was built on the ability of working families to live and thrive in comfortable homes. We are thankful our legislators and The City of Palmdale have enabled us to be the first to provide detached affordable homes to Californians in a generation!" Additionally, all 118 units on the property are under a Land Use Restrictive Agreement (LURA) with no release provisions. “WNC is thrilled to be partnering with Ravello Holdings in providing much-needed affordable housing in Los Angeles County,” said Jessica Captanis, Vice President – Originations at WNC & Associates, the LIHTC investor for the project. “The innovative design of these single family homes to create a garden style community living experience for residents is especially noteworthy to us. We look forward to replicating this model on future developments together.” “The rate on the permanent loan was locked through an issuance of tax-exempt and taxable bonds offered by the California Public Finance Authority,” said Gary Brandt, Managing Director at Stifel, bond underwriters for the project. “When the project is completed, the proceeds from the permanent loan will refinance the construction loan. The securities were well received by the market due to the credit quality provided by the Fannie Mae backed permanent mortgage as well as the affordable housing attributes of the project which are important to our institutional investors that are regional banks.” “We are very excited to be moving forward with the project and strongly believe in our mission to provide residents in the City of Palmdale with high quality affordable housing,” said Matt Avital, Principal at Ascenda Capital, developer partner for the project. “This development is unique because we will be providing each of our residents with a private backyard, a private entrance, and luxurious shared amenities at an affordable price. We strongly feel that our project will positively impact the Palmdale community and are looking forward to a successful development.” To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, Twitter, LinkedIn and Instagram.

INDIANAPOLIS – Mortgage banking company Merchants Capital (MCC), along with Merchants Bank of Indiana (MBI), announces today that it has completed a $262 million securitization of 15 workforce multifamily housing loans through a Freddie Mac-sponsored Q-Series transaction. The Freddie Mac program provides increased liquidity to allow financial institutions, such as MCC, to continue to support affordable and workforce housing. Started in 2014, this program offers a flexible securitization structure and allows institutions to remove seasoned loans from their balance sheets, manage their portfolio and maintain key relationships. This transaction with Merchants marks only the 15th deal completed under the Q platform, with Freddie Mac averaging just over two deals per year. MBI will retain the equity and the interest-only securities from the transaction, and MCC will continue to sub-service the loans in the pool. The $262 million in loans consisted of exclusively workforce properties, owned and operated by some of MCC’s largest clients. On a weighted average basis, the portfolio had 99.5% of units under 80% area median income (AMI), 70.5% of units under 60% AMI and 42.3% of units under 50% AMI. “Our strong expertise in mortgage banking uniquely positions us among other regional banks in the country,” said Evan Gibson, Merchants Capital Vice President of Debt Strategies. “We use our balance sheet wisely, finding opportunities for liquidity and flexibility when possible. The ability to utilize the Freddie Mac Q platform gave us an added outlet for our growing production.” The 15 loans came from across the country, but were concentrated around Indiana and the Midwest, where Merchants has a strong presence. “Evan and the rest of our capital markets team are dedicated to expanding Merchants product offerings beyond the confines of our balance sheet so that we can be more dynamic, ultimately supporting our customers’ needs,” said Michael Dury, Merchants Capital President and CEO. “We are always working on alternative solutions to provide the best financing solutions in affordable and workforce housing, and this Q transaction is the first step in that direction.” “The Q-Deal structure allows Freddie Mac to meet its Duty to Serve objective of supporting financial institutions like Merchants in providing liquidity for affordable multifamily housing,” said Steve Johnson, Vice President of Targeted Affordable Housing at Freddie Mac. “Working together with Merchants Capital, we are supporting workforce housing for more than 764 families located mostly in non-coastal states,” added Christina House, a Multifamily Production Manager with Freddie Mac’s Targeted Affordable Housing group who took the lead on the transaction. To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, Twitter, LinkedIn and Instagram. ABOUT MERCHANTS CAPITAL Established in 1990, Merchants Capital is one of the nation’s top lenders for the refinance, acquisition, new construction and substantial rehabilitation of multifamily, affordable, senior and student housing. Whether you are considering Freddie Mac, Fannie Mae, HUD/FHA insured or balance sheet or tax credit equity financing, let our personalized services help you meet your financing objectives. Experience the creativity of a small lender, with all the capabilities of a large institution. To learn more about Merchants Capital, visit www.merchantscapital.com. FORWARD-LOOKING STATEMENTS  This press release contains forward-looking statements which reflect management’s current views with respect to, among other things, future events and financial performance. These statements are often, but not always, made through the use of words or phrases such as "may," "might," "should," "could," "predict," "potential," "believe," "expect," "continue," "will," "anticipate," "seek," "estimate," "intend," "plan," "projection," "goal," "target," "outlook," "aim," "would," "annualized" and "outlook," or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about the industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control, such as the potential impacts of the COVID-19 pandemic. Accordingly, management cautions that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, estimates and uncertainties that are difficult to predict. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements.  A number of important factors could cause actual results to differ materially from those indicated in these forward-looking statements, including the impacts of the COVID-19 pandemic, such as the severity, magnitude, duration and businesses’ and governments’ responses thereto, on the Company’s operations and personnel, and on activity and demand across its businesses, and other factors identified in "Risk Factors" or "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company’s Annual Report on Form 10-K and other periodic filings with the Securities and Exchange Commission.  Any forward-looking statements presented herein are made only as of the date of this press release, and we do not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

CHICAGO – The Chicago office of mortgage banking company Merchants Capital recently secured a Merchants Bank of Indiana (MBI) construction loan with a Freddie Mac Forward Commitment for Permanent Financing for the development of Gateway Apartments located in the Illinois Medical District (IMD) in Chicago. The project will be the first new, large apartment development within the boundaries of the IMD in several years. Located just west of the Chicago Loop, Gateway Apartments will occupy a site within the one-square mile area known as the Illinois Medical District. The area is largely dedicated to medical services, housing two universities, four major hospital complexes and a wide range of related health care facilities. The district is one of the largest medical complexes in the U.S. and is considered the most important concentration of medical services in the Midwest, employing 30,000 people with 50,000 visitors daily. Set within a larger mixed-use development, Gateway Apartments will provide 161 one- and two-bedroom workforce housing units targeted towards medical personnel, students and faculty who work within the IMD. The project will provide hundreds of construction jobs and opportunities for local minority businesses on the west side of Chicago. In addition, the site will feature a Hilton Hampton Inn & Suites, 35,000 square feet of retail space and up to 500,000 square feet of Life Science/Medical office space. With support and assistance from the IMD, the existing retail phase of the mixed-use development has attracted several retailers including Starbucks, AT&T, Scrub Depot, Jimmy Johns, Panda Express, Chipotle, Five Guys and Eye Q Optique. “We are proud to have had the opportunity to partner with such an exceptional team for the development of Gateway Apartments,” said Lee Oller, Executive Vice President of Merchants Capital Chicago. “The paucity of housing within the IMD has been a missed opportunity for years. Securing this complex financing structure and finally bringing new, modern rental housing to the area is an incredible achievement for Merchants Capital and our development partners at East Lake Management & Development.” “We are thankful for our partnership with the Illinois Medical District, Merchants Capital, the AFL-CIO and Freddie Mac to make Gateway Apartments a reality,” said Tyler Holland at East Lake. “The major investments that are underway within the Illinois Medical District will be truly transformative for the west side of Chicago.” This workforce housing project secured Freddie Mac’s first direct purchase by the American Federation of Labor and Congress of Industrial Organizations Housing Investment Trust (HIT). This is part of Freddie Mac’s Private Placement PC Swap, an offering within the Targeted Affordable Housing (TAH) Structured business. The PC Swap provides liquidity for investors, originators and holders of loans backed by multifamily housing collateral, allowing Freddie Mac to meet the individual needs of its customers. “The HIT is proud of our role working with Merchants Capital and Freddie Mac to design this unique financing structure and serving as the investor in Freddie Mac’s first private placement for this 100% union-built project,” said Mike Cook, HIT’s Chief Portfolio Manager. Merchants Capital provided seamless construction and permanent financing for Gateway Apartments, thereby creating an affordability component that will benefit individuals who would not otherwise be able to afford the high cost of living in the desirable central area of Chicago. To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, Twitter, LinkedIn and Instagram.