Loan Closings

CARMEL, Ind. – Mortgage banking company Merchants Capital has secured financing in excess of $17 million for Trailside Flats in West Lafayette, Indiana, on behalf of Van Rooy Properties, Inc. The 35-year, non-recourse Federal Housing Administration (FHA)/Housing and Urban Development (HUD) 223(f) loan facilitated the refinancing of Trailside Flats, which is existing multifamily rental housing. Located at 2101 Country Squire Court, the apartments are a multifamily development of 195 units comprised of newly renovated buildings as well as newly constructed buildings. In 2017, the project started with a Merchants Bank of Indiana acquisition rehab loan of an existing multifamily property that the client, Van Rooy, acquired with additional vacant land. When the rehabilitated project came to market, Merchants closed new construction financing for additional units on the subdivided vacant ground. Then, as a final step, using a three-year rule waiver from HUD, Trailside Flats’ ownership was modified into a single asset entity and refinanced with HUD using a single 223(f) with an impressive 2.14% note rate. The loan closed in October. “We worked on the long-term vision for this project with the client for a couple years, providing counsel and financing solutions along the way. The process has been intertwined with creativity and foresight, and characterized by our ability to lock in low, long-term interest rates,” said Jeffrey Spahn, senior vice president of originations for Merchants Capital and lead originator of the deals. “By utilizing the Merchants Bank of Indiana balance sheet for our clients to facilitate permanent loan business, we are able to secure and service loans for some of the largest developers nationwide and maintain our position as a leading FHA-insured multifamily lender.” 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. - Merchants Capital, a mortgage banking company, has secured $6.5 million in total funding for mixed-income development Trolley Station Terrace, a 45-unit affordable housing property. Located in Marinette, Wisconsin, Trolley Station Terrace will provide affordable and supportive housing to Marinette County residents in need. Of the $6.5 million financing, $1.8 million will go towards a Rural Development (RD) 538 option 3 loan and $4.7 million towards a Low-Income Housing Tax Credit (LIHTC) bridge loan. Merchants Capital worked closely with Wisconsin’s Rural Development and nonprofit developer Newcap Inc. to contribute to the project. Timing was a big hurdle in bringing the Trolley Station Terrace project to life. The Wisconsin Housing and Economic Development Authority (WHEDA) had strict deadlines for the project to break ground – otherwise, the credits would be lost. Contracts for building materials were set to expire quickly unless the financing was finalized. The Merchants Capital team successfully closed the deal on time, preserving the credits and the material contracts, ultimately saving the borrower hundreds of thousands of dollars. “Merchants Capital has a willingness and desire to provide affordable housing to all areas in need. We also pride ourselves in having flexibility on the financing to help borrowers get the best execution possible in the shortest amount of time,” said Merchants Capital Transaction Manager Gus Gilmore. “Our developer, Newcap Inc., is a nonprofit. Every dollar counts for them on these deals. We were able to be flexible in our LIHTC bridge loan to meet their needs as costs changed, timelines shifted and numbers were tweaked. We are thrilled with how efficiently we were able to work together on Trolley Station Terrace.” Newcap Inc. is a Wisconsin-based nonprofit founded in 1965 as part of the Community Action Network. According to their website, Newcap Inc. “helps those living with the conditions of poverty have better lives while helping them find opportunities to improve their lives for the futures of themselves, their families and their communities.” “Trolley Station Terrace is 45 new apartment homes for families in the Marinette area, 38 of which are reserved for low- and moderate- income workers who don’t have many good options for high quality, affordable housing,” said Cheryl Detrick, Newcap Inc. CEO and president. “Trolley Station is also a major step for Newcap in its mission of enhancing community development. Accessible, affordable housing is a critical component to moving families from poverty to opportunities and economic security.” The 38 LIHTC units will be available for renters who earn up to 30%, 50% and 60% of the area’s median income (AMI). These apartments include one-, two- and three- bedroom units. Additionally, nine of the units will be considered supportive housing. These rooms will be reserved for local veterans, including those who require long-term care services due to disabilities and/or impairments. All units will feature in-unit laundry, a patio or balcony, standard kitchen appliances and forced-air HVAC. Construction began on the property in late August 2020 and is scheduled for completion in August 2021. Once completed, the three-story Trolley Station Terrace will sit on 2.5 acres of land and will be located at 1535 Main Street. 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. – Mortgage banking company Merchants Capital has provided more than $21.5 million in financing for a Minneapolis apartment complex currently under construction, The Bessemer at Seward Commons. The 30-month loan was secured on behalf of Bessemer Apartments, LLC, in partnership with co-developers Schafer Richardson, Seward Redesign and Noor Companies. Located at 2200 Snelling Avenue, The Bessemer at Seward Commons will consist of 128 housing units without income restrictions. The development will be transit oriented, as it is situated directly adjacent to the METRO Blue Line and Hiawatha Bike Trail and one block from the Franklin Avenue Station with no required street crossings. Building amenities will include a club room, fitness center, outdoor terrace, dog run, controlled entry, 24/7 package notification and storage system, bicycle storage and bicycle repair station, pet wash station, and on-site management. The Bessemer is part of a community led, master planned redevelopment referred to as Seward Commons that includes four separate housing developments with 260 rental units to accommodate a broad spectrum of incomes, as well as 33,000 square feet of small business incubator space for local business and arts organizations that reflect and serve South Minneapolis. These small businesses are primarily owned by women and/or Black, Indigenous and People of Color (BIPOC). The Bessemer represents a significant achievement for the Seward community as it represents the first non-income restricted housing project development in this neighborhood in over 40 years. In the face of multiple unprecedented challenges, including the pandemic and the civil rights uprising in the immediate area, Seward Redesign and Schafer Richardson, in partnership with multiple public and private partners including Merchants Capital, were able to successfully bring the project to life in partnership with the broader Seward community. “Throughout all the uncertainty, on top of a complex loan structure, Merchants Capital and Merchants Bank of Indiana stood by the loan and remained committed, providing assurance to the transaction,” said Marsha Goff, Merchants Capital executive vice president and lead originator on the deal. “During this period of meaningful protests and action of many types in our city, we have been very present for our existing clients and for new clients in bringing deals to market. We are proud to be leaning in.” As part of a redevelopment area with Noor Companies, this project utilizes Tax Increment Financing (TIF) awarded by the City of Minneapolis, an estimated $5.4 million over a 26-year period. The development also received environmental clean-up funds from Hennepin County, Metropolitan Council, and MN Department of Employment and Economic Development as well as a Transit-Oriented Development loan from Hennepin County. “The Bessemer had a complex structure with ten different funding sources,” said Amanda Janzen, Schafer Richardson senior development manager. “The Bessemer is also located in a census tract that is designated as an opportunity zone. We structured the deal to include two Qualified Opportunity Zone Funds (Catalyst Opportunity Funds and Schafer Richardson Opportunity Zone Fund), which resulted in the Bessemer being one of the first opportunity zone projects in the City of Minneapolis.” “This project is a key component of the larger Seward Commons redevelopment area, as it provides important socio-economic diversity within our local housing stock,” said Christopher Romano, executive director of Seward Redesign. “This diversity is good for our local entrepreneurs and commercial corridors, and it contributes to vibrant, diverse and healthy neighborhoods. The Bessemer is the result of significant voice and effort provided by many key community partners. We are very excited about this next phase of the Seward Commons development.” 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. – Mortgage banking company Merchants Capital today announces that it has provided $11 million for the construction of SouthPointe Village, a 62-unit multifamily and affordable housing community coming to Fishers, Indiana. The equity bridge loan is financed on behalf of RealAmerica Companies. Located at 11144 Lantern Road, SouthPointe Village will be available for renters who earn 50-80% of the area’s adjusted median income (AMI). This project will be a 30-month loan with a $1.2 million low-income housing tax credit (LIHTC) that allows the development to be built with rents lower than current market value. “This unique project allows us to understand the importance of funding affordable housing, especially in cities like Fishers. With rent steadily on the rise, the need for quality, affordable housing that Hoosiers can afford to live in grows greater and greater,” said Merchants Capital Assistant Vice President, Originations Brian Shelbourne. “We are honored that our financing will benefit the Fishers community and be a part of its continued, outstanding growth.” Apartments at SouthPointe Village will rent for $650-$950 a month for a one-bedroom and $760-$1,100 a month for a two-bedroom – a significant drop compared to the current average rent prices in Fishers for a one-bedroom ($990 a month) and two-bedroom ($1,250 a month). Annual federal tax credits through the Indiana Housing and Community Development Authority (IHCDA) were closely examined to help keep rent rates lower than average. “It is vital that communities have quality housing options that support a variety of income levels,” said IHCDA Executive Director Jacob Sipe. “SouthPointe Village will do just that while at the same time further enhance the quality of a place for working families in Fishers. This is a very exciting housing development and we are proud to be a part of it.” Fishers’ newest affordable housing property also sets aside 25% of the apartments at lower rents for the developmentally disabled, with the help of local central Indiana organizations such as Janus Development Services, Outside the Box, Opportunities for Positive Growth and Insights Consulting. “We are so excited to work with Fishers to offer workforce housing that helps those working in the community be able to live, play, and attend school in the community they work in,” said Ronda Weybright, President and Owner for RealAmerica. “Located in the heart of Fishers on the Nickle Plate Trail, families are within walking distance of downtown and all it has to offer. Also, for persons with disabilities, we are thrilled to come alongside several partners to provide supportive housing that allows them to stay close to their families in Fishers while providing easy access to services and opportunities within this community.” To learn more about this project, please click here. 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. – Merchants Capital, a mortgage banking company headquartered in Indiana, has provided $10 million in financing for the construction of Haven Homes, a 52-unit affordable and supportive housing apartment community coming to Plainfield, Indiana. Haven Homes is an apartment complex that’s considered affordable for all, where anyone or any family looking to rent an apartment can do so at an affordable price. Through the partnership between borrower RealAmerica Companies and Sheltering Wings, a non-profit that provides emergency housing for survivors escaping abuse, 25% of the affordable apartment units are allocated for project-based vouchers specifically for survivors of domestic violence. Additionally, all residents will have access to supportive services in the community resource center and clubhouse, with mental health services provided by Cummins Behavioral Health Systems, Inc. and domestic abuse support provided by Sheltering Wings. Not only does the apartment complex and community serve former and current residents of Sheltering Wings, but Haven Homes provides affordable housing to all families in Hendricks County who need it. Those working in and around the area of Plainfield are able to live and thrive in the supportive housing community, together making positive social and economic contributions. “Where you call home determines so many things about your life. This project not only amplifies the dedicated mission of Sheltering Wings, but also shares the importance of affordable housing, especially in rapidly growing areas such as Plainfield,” said Merchants Capital Assistant Vice President, Originations Brian Shelbourne. “Merchants Capital was honored to partner with RealAmerica Companies and Sheltering Wings to bring this project to life. Together, we’re shining a light on these issues and supplying safe, secure, high-quality affordable housing where everyone, including survivors of domestic abuse, can prosper and grow.” When survivors of domestic violence are secure enough to move out of Sheltering Wings, opportunities for affordable housing properties become a great need for them. According to the Sheltering Wings website, “The financial strain of keeping a roof overhead – not to mention vehicle, childcare and education expenses – can be a major stumbling block between a determined survivor and sustained independence.” “Studies continue to show among the greatest barriers to develop stability and independence are affordable housing, reliable transportation, affordable childcare and access to mental health services,” said Sheltering Wings Executive Director Cassie Mecklenburg. “Haven Homes allows us to help families with several of these areas and we don’t take this opportunity lightly. We want to be advocates for families to establish safety, succeed and build self-sufficiency. It is an honor to partner with other like-minded organizations who care about our families and community.” As Cummins Behavioral Health Systems, Inc. administers the mental health services to those who request and require it, Sheltering Wings will in tandem use the community room to build their life skills programming, conduct case management, share prevention and education programs, administer health services, and support the children and survivors of domestic abuse. “We are honored to partner with the Indiana Housing & Community Development Authority (IHCDA) and the town of Plainfield to bring affordable housing to families that work in the community,” RealAmerica President and Owner Ronda Weybright said. “By partnering with Sheltering Wings and Cummins Behavioral Health, we are able to provide services on-site that encourage stability and independence to help families thrive, while living in a beautiful and affordable environment.” “The Town of Plainfield is excited that Plainfield was chosen as the home for the Haven Homes project for many reasons. Town staff has worked to diversify our housing market for awhile now,” said Town of Plainfield Town Manager, Andrew Klinger. “This development will have a tremendous impact on our economy, as it is in the heart of our warehouse and retail district and there is immediate access to public transportation. The units in this development will allow employees who work here to also live here.” Construction has already begun on Haven Homes, with the goal of the development to be fully completed by Fall 2021. To view the project’s recent groundbreaking, please click here. 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. (Oct. 22, 2020) – Mortgage banking company Merchants Capital today announces that it has provided $25 million in financing for the mixed-use development River Point West, coming soon to Elkhart, Indiana. Approximately $20 million is dedicated to the development itself, while another $5 million is for the onsite Martin’s Supermarket. The new construction loan is financed through Merchants Bank of Indiana on behalf of real estate private equity firm Great Lakes Capital. The River Point West development, complete with 173 apartments, 6,000 square feet of ground floor retail space and a separate 42,000-square-foot Martin’s Supermarket, will provide growth opportunities to both residents and visitors of Elkhart. Aligning with the River District Plan approved by the City of Elkhart, the new community is one part of the current private investments towards the residential expansion of downtown. According to the Elkhart River District website, “The need and potential of the residential focus was determined by a residential study, completed by Zimmerman, Volk and Associates, determining that 1,000 rent units can be absorbed within five years to capture new residents and a portion of the current 40,000 commuters who work and do not live in Elkhart.” “River Point West is a critical component for the city of Elkhart, as they begin to transform and revitalize their downtown area and provide ample space for multifamily and workforce housing,” said Merchants Capital Assistant Vice President, Originations Brian Shelbourne. “We are honored that our financing will benefit this community and propel Elkhart forward.” The project is a public-private partnership between the City of Elkhart, CRG Residential, the Regional Cities Initiative and Great Lakes Capital. Under the Land Use Restriction Agreement (LURA), 10% of River Point West’s apartment units are restricted to residents making 60% of the area’s median income (AMI). “Working hand in hand and furthering investment in and with the City of Elkhart will only continue the economic momentum of the growing city and region. We’re thankful to have helped bring River Point West’s dynamic mixed-use development, consisting of both housing properties and a supermarket, to life, in part to our longstanding and trusted community partner in Martin’s Supermarket,” said Great Lakes Capital Managing Partner Ryan Rans. “We also look forward to our continued partnership with Merchants Capital, availing ourselves of a best-in-class institution and their ability to leverage unique product solutions and structure along with execution certainty.” Construction has already begun on River Point West, and the project is currently ahead of schedule. The first of three apartment buildings is on track to begin leasing this fall. The project is expected to be completed in phases, with the development to be fully completed by Spring 2021. 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. (Sept. 21, 2020) – Mortgage banking company Merchants Capital has secured $7.25 million for The Ace, a new multifamily apartment complex coming to the east side of Madison, Wisconsin utilizing the Freddie Mac Unfunded Forward Commitment. Merchants Bank of Indiana is also providing Construction Loan financing of $16.89 million on behalf of co-developers, Movin’ Out, Inc. and Commonwealth Development Corporation. Following the 30-month construction forward, the Freddie Mac $7.25 million 9% LIHTC Forward will provide a 15-year permanent loan with a 35-year amortization period at an extremely attractive fixed interest rate that is “locked-in” at the closing of the construction loan. Additionally, as a member bank of the Federal Home Loan Bank (FHLB) of Chicago, Merchants Capital affiliate Farmers-Merchants Bank of Illinois was able to sponsor and secure an Affordable Housing Program (AHP) Grant award for The Ace, bringing in $885,000 of funding to the project. “Our organization has a unique, unmatched ability to support affordable housing projects with diverse financing needs,” said Merchants Capital Senior Vice President Brian Emmons. “The Merchants umbrella is the link to Freddie permanent financing, FHLB of Chicago AHP Grant funds and construction financing provided by Merchants Bank of Indiana. Because of the diverse connections available at our fingertips, we were able to secure the financing necessary to get this much-needed affordable housing project off the ground.” With 70 units across two buildings, The Ace will integrate 14 units of supportive housing that target individuals with disabilities, veterans, and/or individuals at-risk of homelessness. A total of 59 units are reserved for individuals making at or less than 30%, 50%, or 60% of the County Median Income. Co-developers Movin’ Out and Commonwealth Development Corporation were thrilled with the closing and Merchants Capital’s involvement. "Merchants Capital played a key role in this much needed project. Merchants’ ability to provide multiple pieces of financing was crucial to reaching a successful closing,” said Movin’ Out Real Estate Developer Megan Schuetz. Commonwealth Development Corporation Principal Christopher Jaye commented, “Brian Emmons and the Merchants’ team were proactive, creative and a great resource.” 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. (Aug. 17, 2020) – Mortgage banking company Merchants Capital today announces that it has secured more than $14 million in new financing for West Pointe Commons, a 141-unit townhome community in southwest Sioux Falls, South Dakota. The project is financed through Merchants Bank of Indiana on behalf of a local investment group. The closing of West Pointe Commons is significant, as it marks the first loan Merchants Capital has provided in the state of South Dakota. The refinance of the property allowed the borrower to optimize equity for the project that was originally placed into service in 2016. The closing execution for West Pointe Commons was also efficient, especially considering the typical financing delays being caused by COVID-19, as it closed just 48 calendar days from the accepted term sheet. “At Merchants Capital, we are continuing to provide extremely competitive debt solutions to our affordable and multifamily housing clients throughout the pandemic,” said Merchants Capital Senior Vice President Brian Emmons. “This commitment is evident in our secured funding for West Pointe Commons. We are proud to continually assist our clients with ultimate long-term secondary market placement once these loan products begin to normalize post-COVID.” The loan also included a “swap rate,” a type of interest rate contract that is used to manage the risk of interest rate fluctuations and provide borrowers with a fixed rate. The borrower will have a fixed rate, and Merchants Bank of Indiana is able to earn interest on the loan based on a floating rate environment. West Pointe Commons offers one-, two- and three-bedroom townhome options and is pet-friendly. Various apartment amenities include a private entrance, central AC and an attached double garage. Outdoor and community amenities include a 24-hour fitness center, clubhouse, in-ground pool and playground. 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. (June 15, 2020) – Mortgage banking company Merchants Capital has secured $25.9 million in Fannie Mae funding for a 476-unit multifamily affordable housing property in Joliet, Illinois. The Fannie Mae Cash Preservation loan was secured on behalf of the owners of Brinshore Development, The Richman Group and Eric Richelson. Located at 947 Lois Place in Joliet, Illinois, Larkin Village operates under a tax credit program through the Illinois Housing Development Authority (IHDA). The IHDA requires that the property supplies 256 of the 476 units at or below 60% of the area median income (AMI). The other 220 units are unrestricted. “Now more than ever, there is a need across our country for affordable housing properties that are safe, clean and available for our American workers,” said Merchants Capital Senior Vice President Randall Rogers Jr. “Securing the financing for a multifamily, affordable housing property such as Larkin Village supports Merchants Capital’s passion for providing these housing options nationwide.” Merchants Capital was also instrumental in the structuring and underwriting of this transaction, facilitating the communications and documentation that led to the approval of a 10-year interest only period. Merchants Capital, Brinshore Development and The Richman Group were able to execute and close the loan remotely, due to the COVID-19 shelter-in-place order issued days before closing. This transaction allowed the ownership team to retire IHDA debt, make useful repairs to the property, and redeploy the equity accumulated over many years of effective operations. The equity will be used to invest in other affordable housing projects either through new construction developments or renovations. “The payoff of the IHDA loan marks the end of a success story. Larkin Village was one of only two foreclosure of multifamily loans which IHDA ever held. In 1999, IHDA selected the development team to rehabilitate, re-tenant and operate the failed affordable housing project,” said Brinshore Development Principal David Brint. “21 years later, Larkin Village is an important asset to the affordable housing stock in Will County, Illinois.” An Equal Housing Opportunity, Larkin Village offers options for studio, one-, two- and three-bedroom apartments in its family friendly community. The property provides complimentary heat, cooking, gas, water, garbage and private satellite TV for each apartment. Outdoor amenities include a swimming pool, community center, playground and clubhouse, along with numerous green areas and management on the premise. The community also supplies laundry facilities in each building with Cashless Smart Card washers and dryers for convenience. To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, Twitter, Instagram and LinkedIn.

CARMEL, Ind. – Mortgage banking company Merchants Capital today announces that it has provided a three-year bridge loan for Centennial Aspen, a 148-unit workforce housing complex located in Aspen, Colorado. The acquisition of the project is financed through Merchants Bank of Indiana (MBI) on behalf of Birge & Held Asset Management, which currently owns and manages over 11,000 apartment units across the country, with offices in Indianapolis, Ind. and Denver, Colo. Merchants Capital Corp. intends to further provide long-term, permanent financing for the project either through Fannie Mae or Freddie Mac’s preservation platforms or through a syndication of new tax credits via Fannie, Freddie or HUD. Located at the base of Smugger Mountain at 100 Luke Short Ct., Centennial Aspen was built in 1986 and designed by world-renowned architect Moshe Safdie. The property was built with a Land Use Restriction Agreement (LURA) that required 100% of the rental units to be used for workforce housing. In Aspen, Colorado, the average household and median income are both higher than the state of Colorado as a whole. This creates an environment where the cost of living is higher in this area than others in the state, contributing to higher housing costs. Under the LURA, Centennial Aspen’s units are rented to residents with incomes ranging from 50% to 120% of the area’s median income (AMI). “Centennial Aspen serves true workforce residents who might otherwise be unable to live in a high-cost city such as Aspen,” said Merchants Capital Vice President Eddie Dietrick. “We’re honored to provide this bridge loan which furthers our mission of providing high quality, affordable housing options across the country in critical job centers.” The 11-building, three-story multifamily property features studio, one, two- and three-bedroom apartments. Apartment amenities include exterior entrances, an exterior storage unit and electric heat, while community amenities include an onsite laundry facility and office, a playground and assigned parking spaces. “Birge & Held is very excited about the acquisition of Centennial Apartments, as it is a perfect match with our workforce housing portfolio in one of the most unique markets in the country,” said Birge & Held President and Co-Owner Andrew Held. “Merchants Capital has been a great partner of ours for decades, and understands the need for supporting affordable housing in markets like Aspen.” The workforce housing option is conveniently located near local grocery stores, pharmacies and ski resort options, and residents can take a 15-minute walk or utilize the free RFTA bus to travel into downtown. To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, Twitter, Instagram and LinkedIn.