Press Release

CARMEL, Ind. (Jan. 6, 2025)—Leading financial services provider Merchants Capital today announced that it secured more than $88 million in financing for Union at Bluffs Run, a new 192-unit affordable housing community in Council Bluffs, Iowa. The financing supports the expansion of The Annex Group’s affordable housing footprint. Union at Bluffs Run will be the developer’s fourth in the state. Merchants Capital secured a $24.9 million Fannie Mae Forward MBS Tax-Exempt Bond (M.TEB) permanent loan and $22.5 million in low-income housing tax credit (LIHTC) equity. A $41.5 million construction loan was provided by Merchants Bank. Affordability for the development will be supported via tax increment financing (TIF) from the City of Council Bluffs and rent restriction to residents earning at or below 60% of area median income (AMI). Union at Bluffs Run is being developed by leading impact housing developer The Annex Group, specialists in creating affordable, workforce, student and market-rate housing communities. The Annex Group has overseen $975 million in single family, multi-family, mixed-use and other commercial projects, including redevelopment and ground-up construction. Located on more than 10 acres, Union at Bluffs Run will comprise four, three-story apartment-style buildings with 72 one-bedroom, 96 two-bedroom, 24 three-bedroom units. Common areas, including a community room, fitness center and leasing office, will be contained in an additional building. Amenities include a playground, dog park and picnic area. “Entering the Council Bluffs area is a natural fit for The Annex Group,” said Ryan Clark, Senior Vice President of Development at The Annex Group. “As an organization, we’ve expanded our footprint in Iowa and see this as another opportunity to bring affordable housing to a growing area that truly needs it. We look forward to becoming a part of this great community.” Union at Bluffs Run is expected to open in fall 2026. To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, X, LinkedIn and Instagram.

NEW YORK (Dec. 5, 2024)—Leading financial services provider Merchants Capital today announced that it secured $19.1 million for the acquisition of Mall West End Revitalization, a 12-acre historic site in Atlanta, Ga. that will be converted into a $450 million mixed-use development comprising a hotel, retail space and 1,045-unit residential housing restricted for seniors, students and workforce. Merchants Capital arranged a $19.1 million land acquisition loan. The financing was provided by Merchants Bank, parent company of Merchants Capital. Founded in 1972, Dominium builds and manages high-quality affordable homes. Renowned locally as a cultural hub, Mall West End will transform 12 acres one mile southwest of downtown Atlanta and support redevelopment planned by co-developers BRP Companies and The Prusik Group, Atlanta Urban Development and Atlanta Beltline, Inc. The site sits within a federal opportunity zone with tax incentives, including tax abatements for new developments. Mall West End is being developed via a joint venture between BRP Companies and The Prusik Group. Prusik Group specializes in the development and repositioning of retail real estate assets, with more than 3 million square feet under management. BRP Companies provides fully integrated real estate development, construction, property management and financial services. Its portfolio contains more than 3,600 units of multifamily housing and more than $6.8 billion in completed and current transactions. “We are proud to revitalize the property into its next chapter, bringing much-needed affordable and workforce housing to the West End community,” said Meredith Marshall, Co-Founder and Managing Partner of BRP Companies. “Through this redevelopment, we look forward to celebrating the cultural heritage of the West End neighborhood while we work to transform the property into a vibrant destination that becomes a central hub for the community.” “The acquisition of the Mall West End is a testament to the power of persistence and determination, and we are immensely proud of the partnerships we've built with the incredible West End Community, the Atlanta University Center, and the City of Atlanta, to whom we extend our heartfelt gratitude for believing in our vision,” said S. Andrew Katz, Co-CEO of The Prusik Group. “We look forward to developing an inclusive mixed-use development that builds on the past and leads to a brighter future.” Residential housing in three of Mall West End’s buildings will include 245 senior housing units, 596 conventional multifamily units and 204 student housing units. In addition, 893 mixed-income workforce rental units that will be restricted at 70% for workforce housing, 20% will be affordable at 50% of the Greater Atlanta Area Median Income (AMI) and 10% at 80% of AMI. Residential amenities will include a fitness center, pool, resident lounge, landscaped terrace, bike and car parking and package room. The development will be located on a public green space one block from a Metro Atlanta Rail Transit Authority (“MARTA”) station. Construction on Mall West End is expected to begin in 2025, with phase one completion slated for 2026. To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, X, LinkedIn and Instagram.

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.

CARMEL, Ind. (Oct. 4, 2024)—Leading financial services provider Merchants Capital (Merchants) today announced the securitization of approximately $630 million in healthcare commercial real estate (CRE) bridge loans. The loans were originated by VIUM Capital, Merchants’ joint venture partner, and underwritten and closed on the balance sheet of Merchants’ parent, Merchants Bank, within the past 16 months. The loans are intended to support the properties until they seek permanent financing through U.S. Department of Housing and Urban Development (HUD). The securitization pool contains 21 loans collateralized by 74 properties across 15 states for a variety of facilities, including skilled nursing, assisted living, memory care and independent living. The loans had a weighted average LTV of 69% and a weighted average debt yield above 15%. Structured as a credit risk transfer (CRT), Merchants, in collaboration with ATLAS SP Partners as structuring agent and sole bookrunner, partnered with a large investment manager specialized in alternative assets to purchase the junior securities, which totaled 15% of the transaction. As part of its purchase, the investor retained the first loss Risk Retention certificates as a third-party purchaser. "Merchants is actively positioning its balance sheet to accommodate potential increased volume during the next couple of years,” said Evan Gibson, Executive Vice President of Capital Markets at Merchants Capital. “Merchants has developed a strategic program around loan securitizations, completing four CRTs since 2022, which has helped to provide capital relief, reduce credit risk, and allow Merchants to continue as one of the top multifamily and healthcare bridge lenders in the country.” To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, X, LinkedIn and Instagram.

NEW YORK (Oct. 1, 2024)—Leading financial services provider Merchants Capital today announced that it secured more than $100 million in debt and equity proceeds for the acquisition and rehabilitation of Travis Park Apartments, an affordable housing development in Austin, Texas. "Merchants was able to demonstrate our array of innovative affordable housing financing products economically and efficiently to deliver for Sena Affordable Communities in an expedited timeframe,” said Michael Milazzo, Senior Vice President of Originations at Merchants Capital. “The collaboration between Sena and our debt and tax credit equity platforms was truly outstanding, and we are honored to be a part of securing Travis Park’s long-term affordability in the Austin market.” Merchants Capital provided a $69.15 million Freddie Mac 4% Low-Income Housing Tax Credit (LIHTC) Immediate TEL loan and $37.6 million in LIHTC equity as the syndicator. Merchants Bank provided a $29 million equity bridge loan during the rehab period. “We are excited to continue our relationship with L+M Development Partners and TCC Hill Country Development Corp,” said Marcin Dzido, Vice President of Acquisitions at Merchants Capital. “The Travis Park renovation ensures that 199 low-income families have safe, high-qualify housing for years to come.” Sena Affordable Communities, an affiliate of L+M Fund Management (LMFM), is a dedicated acquisition rehabilitation business known for strengthening communities with innovative affordable housing solutions to significantly reposition assets with Low-Income Housing Tax Credits and tax-exempt bond financing. The Travis Park Apartments rehabilitation will involve improvements to the grounds, building exteriors, unit interiors and deferred maintenance across 22 buildings. The scope of work includes the addition of new outdoor recreation areas, playgrounds, extensive accessibility upgrades, window replacement, new boiler and cooling towers, kitchen and bathroom improvements, new energy star appliances, replacement of original fan coil units for heating and cooling, building envelope upgrades, roof replacement and signage. A Freddie Mac Impact Sponsor, L+M Development Partners and its affiliated companies, including LMFM and Sena, have more than 55,000 high-quality residential units in construction or acquired, preserved or completed in markets across the United States. "With funding now secured for Travis Park Apartments, we look forward to protecting its long-term affordability and delivering critical improvements that will enhance the quality of life for all residents," said Jeffrey Moelis, Managing Director, Sena Affordable Communities. "Our planned upgrades, combined with Travis Park's optimal location near downtown Austin, will ensure this community can thrive for decades to come, especially as the area continues to boom. We are grateful to our partners at Merchants Capital for their work in helping us reach this milestone." Travis Park Apartments is located in South Central Austin, with regional access to Interstate 35, US Highway 290 and MoPac Expressway, and near downtown entertainment districts and outdoor attractions, including the riverwalk. Renovations are expected to be completed in 18 months. To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, X, LinkedIn and Instagram. Travis Park Apartments, image courtesy of SVN Affordable | Levental Realty

WASHINGTON (Sept. 24, 2024)—Leading financial services provider Merchants Capital today announced more than $59 million in financing for the rehabilitation of Amber Commons, a 198-unit multifamily housing development in Gaithersburg, Maryland. Merchants Capital provided a $37.7 million Freddie Mac Immediate TEL permanent loan, and Merchants Bank provided a $21.3 million equity bridge loan for the rehabilitation. Previously a market-rate property with several moderately priced dwelling units (MPDUs), Amber Commons will be an affordable housing development with an average rent restriction of 60% area median income (AMI). Affordability is supported by the LIHTC syndication with the Maryland Department of Housing and Community Development (DHCD). "Amber Commons is expanding the amount and quality of affordable housing in Gaithersburg with these upgrades, which are on par with, and in some cases, surpasses the current housing comparables in the market area,” said Ayanna Grasty, Vice President of Originations at Merchants Capital. “We applaud MRK Partners’ detailed approach to improving the quality of life in communities and our partners’ commitment to providing expansive affordable housing solutions.” Amber Commons is being developed by real estate investment and asset management company MRK Partners, specialists in acquisition, preservation, and repositioning of affordable housing. The company currently has more than 4,000 units under management. Interior and exterior enhancements will be rolled out across Amber Commons’ 17 three-story garden apartment buildings and common areas, including new roofing, windows and exterior lighting, new flooring, water heaters, HVAC condenser and furnace replacement and kitchen/bathroom upgrades. Accessibility upgrades will be made across the property, and sustainable improvements will achieve Enterprise Green Communities Criteria (EGCC). “We are deeply proud of the transformation of Amber Commons from a market-rate property to affordable housing, providing 198 affordable units for at least the next 30 years,” said Sydne Garchik, Founder and President of MRK Partners. “Equally exciting is the comprehensive renovation underway, which will provide upgraded units, energy efficiency updates and enhanced community spaces. We believe that everyone deserves access to quality, affordable housing, and we are especially proud to bring this vision to life in the city of Gaithersburg. This achievement is made possible through mission-driven partnerships, including our collaboration with Merchants, our nonprofit partner PSCDC, our equity partner R4 Capital, and our bond issuer Maryland CDA. We want to give special recognition to Montgomery County, our county loan lender, for their crucial support.” The renovation is expected to be completed in August 2025, following a 13-month construction period. 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. (Sept. 19, 2024)—Leading financial services provider Merchants Capital today announced the completion of its fifth Freddie Mac-sponsored Q-Series transaction, a $324.6 million securitization of 13 stabilized multifamily mortgage loans. The $324.6 million in loans includes 13 properties and 2,890 units across seven states with the largest concentrations in Indiana, Ohio and Iowa. The properties contain 66 to 492 units with 67% of the units affordable to households earning below 80% of the area median income (AMI). This transaction, which closed in April, is Merchants’ largest Q-Series transaction to date. The company has securitized $1.4 billion via the Q-Series and issued five of the last 13 deals, making it among the most prolific Q-Series issuers. Merchants Capital was named the #1 Freddie Mac Multifamily Optigo® TAH Lender by volume in 2023. The company previously completed Q-Series transactions that include a $303 million securitization of 11 multifamily housing loans, a $284 million securitization of 16 multifamily loans, a $214 million securitization of 14 multifamily loans and a $262 million securitization of 15 workforce housing properties.   To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, X, LinkedIn and Instagram. To learn more about Freddie Mac Multifamily Q-Deals, please click here.

CARMEL, Ind. (Aug. 15, 2024)—Leading financial services provider Merchants Capital today announced that it secured more than $14.3 million for the development of Union at Purple Heart Trail, a 240-unit affordable housing community in Wichita, Kansas.   Merchants Capital provided a tax-exempt $14.3 million forward committed private placement loan for Union at Purple Heart Trail. It is the first 4% tax-exempt private placement loan closed with Merchants Bank. Developed by leading impact housing developer The Annex Group,® Union at Purple Heart Trail will offer one, two and three-bedroom units across two four-story buildings. The development will sit on ten acres of land and include a community center with a fitness center, media center, business learning center, an outdoor gazebo, playground, bark park, walking path and picnic areas. The Annex Group is also creating a customized Community Impact Plan (CIP) to link residents with local businesses, employers and resources to encourage personal and professional growth. “The Annex Group is thrilled to expand our footprint in Kansas with the addition of Union at Purple Heart Trail, which will bring hundreds of new affordable housing units to Wichita,” said Ryan Clark, Senior Vice President of Development at The Annex Group. “We're excited to offer diverse housing options in an amenity-rich area on the east side of town and contribute to solving the affordable housing shortage with a vibrant new community.” The $61 million community will be located at 300 S. 127th St. E. and 390 S 127th St. E. Construction on the property is underway, with an anticipated opening in early 2026. 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. (Aug. 1, 2024)—Leading financial services provider Merchants Capital today announced the execution of a $543.5 million Credit Risk Transfer (CRT), secured by 41 performing multifamily bridge loans. This is the second multifamily CRT and the third overall completed by Merchants’ Capital Markets platform, which has executed nearly $4 billion in securitizations.    The transaction, which closed in March, was structured as a Credit Default Swap (CDS), with $76 million in credit protection purchased from a large institutional investor as a first-loss risk transfer. Bridge loans from 53 properties are included in the portfolio, with a total of 7,040 units from 14 states, the largest concentrations located in Indiana, South Carolina and Illinois. The transactions led by Merchants’ Capital Markets platform, including this CRT, support Merchants Capital’s production, which totaled nearly $7 billion in 2023. To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, X, LinkedIn and Instagram.