Press Release

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.

CARMEL, Ind. (July 16, 2024)—Leading financial services provider Merchants Capital today announced that it secured $17.1 million in financing for The Marvetta & Anthony Grimes Family Center, a 36-unit Indianapolis-based supportive housing development for households recovering from addiction. Merchants Capital provided $9.5 million in low-income housing tax credit equity (LIHTC) financing, and Merchants Bank provided a $7.6 million equity bridge loan. Financing from The Indiana Housing & Community Development Authority (IHCDA) included a $750,000 Development Fund Loan in addition to 9% low-income housing tax credits as part of the Emerging Developer 2023 Rental Housing Tax Credit (RHTC) General Set-Aside. Additional partners include First Merchants Bank and The National Bank of Indianapolis. 2 Thirty-Eight Properties, LLC (2 Thirty-Eight) developed Marvetta & Anthony Grimes Family Center in collaboration with Seeds of Hope to accommodate a shortage of recovery centers in the area. RealAmerica Companies is the development consultant and general contractor; RealAmerica Management will serve as the property management company. Volunteers of America Ohio and Indiana and Seeds of Hope will provide on-site services and support for families in recovery, and St. Mary’s Early Childhood Center will provide daycare services. The development comprises two two-story garden-style buildings that house 24 two-bedroom units, 12 three-bedroom units and an on-site daycare center, medical offices and community and supportive services. Tenants will be referred by the Father Glen O’Connor Home, a Seeds of Hope-owned property, and a referral network that includes Indianapolis-area organizations: Heart Rock Recovery House, Wheeler Mission Center for Women & Children, The Salvation Army Women & Children, Dove Recovery House and Firefly Children and Family Alliance. “I'm thrilled to be a part of a housing development that's changing the lives of current and future generations,” said Frederick Yeakey, Principal & Founder of 2 Thirty-Eight Properties. “With this being my first development, it was important to address a need that can impact housing and other factors that can greatly affect the cycle of poverty. My development team was incredible, and our partners on this project will provide the expertise and council needed for years to come.” The Marvetta & Anthony Grimes Family Center will be located in West Indianapolis, 0.7 miles east of Interstate 465, in close proximity to an IndyGo bus stop, restaurants, grocery and various retail outlets. Construction began in May 2024 and is scheduled for completion in July 2025. 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. (June 10, 2023) – Leading financial services provider Merchants Capital today announced that it has secured more than $81 million in total financing on behalf of Magnus Capital Partners (Magnus) for HōM Flats at 24 East, a mixed-use, mixed-income ground-up development in Holland, Mich. HōM Flats is a best-in-class workforce housing platform that prioritizes affordability, quality and community engagement. HōM Flats at 24 East is financed through private and public funding sources, including a 4% low-income housing tax credit (LIHTC) allocation from Michigan State Housing Development Authority (MSHDA). Merchants Capital provided $14.2 million in LIHTC equity, a $27.9 million Freddie Mac unfunded forward tax-exempt loan (TEL) and Merchants Bank provided a $31 million construction loan and $8 million equity bridge loan. “This was a team effort across the board—with all of the stakeholders aligned, we executed efficiently,” said Joseph Krengel, Senior Vice President of Originations at Merchants Capital. “Merchants is proud of our partnership with Magnus Capital Partners and collaboration throughout this innovative transaction. We look forward to witnessing the impact of HōM Flats at 24 East’s workforce housing solutions in the area.”  The project will feature 202 residential units, more than 13,000 square feet of new retail space and amenities common in Class A luxury properties, including kitchen islands, full-size washer and dryer, secured key fob access and open floor plans. Magnus has already identified a locally owned childcare provider for 8,800 square feet and will share details as construction progresses. Magnus also created the Preferred Employer and PASS partnership programs to connect local employees with quality housing options and promote patronage of local businesses. “HōM Flats at 24 East brings the best of rental housing, childcare and locally owned businesses to a rapidly growing economic corridor,” said Magnus Capital Partners CEO and Founder Vishal Arora. “We are delighted to see this project move forward.” “We are proud to partner with Magnus Capital Partners and MSHDA to provide $14.2 million in LIHTC equity—and bring 202 units of affordable housing to the community of Holland, Michigan,” said Josh Reed, Executive Vice President of LIHTC Acquisitions at Merchants Capital. The project comprises 64 one-bedroom units, 108 two-bedroom units and 30 three-bedroom units. It is being designed and constructed according to the National Green Building Standard Silver Certification. The property will feature common resident spaces, including a pickleball court, fitness studio, co-working lounge, cafe, indoor and outdoor children’s play areas, secure package delivery area, pet washing stations, indoor bike storage, rooftop terraces and walking paths. HōM Flats at 24 East will be located at 717 East 24th Street, adjacent to a Macatawa Express bus stop and near US-31 and 196 highways, both major transit corridors in West Michigan. Community resources include three grocers, a pharmacy, a medical provider, Van Raalte Farm Park, Holland Heights Park, Morningside Park, Lake Michigan beaches, public schools and higher education facilities, including Holland Early College, GRCC Lakeshore Campus and Hope College.  Construction on HōM Flats at 24 East began in April 2024, with an expected completion within 20 months. Magnus hosted a groundbreaking event on June 6. 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. (May 21, 2023) – Leading financial services provider Merchants Capital today announced the addition of Michael Larsen to its executive leadership team in the new role of Chief Financial Officer. Larsen oversees Merchants’ accounting and finance platform and is based in the New York office. The position was created in response to Merchants’ organizational growth and platform complexity with expansion in low-income housing tax credit (LIHTC) syndications, multifamily & healthcare securitizations and growing agency platform. Michael Larsen Larsen brings more than 20 years of industry experience to the position. He most recently served as President and Chief Operating Officer at Lument, a leading agency lender. In these roles, he provided executive leadership for all aspects of real estate lending and investment management for a platform with $16 billion in annual volume and $50 billion in assets under management. Prior to that role, he was Chief Operating Officer and Chief Financial Officer at Hunt Real Estate Capital and Centerline Capital Group, a publicly traded mortgage banking and investment management company. Larsen began his career in real estate consulting and structured finance practices at Arthur Andersen. “Mike brings a deep understanding of both agency lending and LIHTC syndications, which are core to Merchants’ growth plans,” said Michael Dury, President and Chief Executive Officer at Merchants Capital. “His skillsets and leadership proficiency complement those of our executive team, and I can’t wait to see the positive impact he will have on our entire organization.” Larsen received a Bachelor of Arts from the University of Pennsylvania and a Master of Business Administration from Columbia University. 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. (April 24, 2023) – Leading financial services provider Merchants Capital today announced the promotion of Evan Gibson to Executive Vice President, Capital Markets. Gibson leads the platform, which creates liquidity and capital relief for Merchants Bank and aids Merchants Capital in providing innovative financing solutions for multifamily and affordable housing developments nationwide. He previously served as Senior Vice President. Gibson’s team has securitized or transferred risk on more than $5.2 billion in multifamily and healthcare loans from Merchants Bank’s balance sheet, resulting in significant capital relief. The team has expanded Merchants’ pool of institutional investors and risk transfer structures, assumed greater ownership in investor relations, and executed multiple innovative securitizations under the Freddie Mac Q-Series program.   Evan Gibson Gibson originated Merchants’ capital markets platform in 2020, growing it from a one-person operation to a team that plays a strategic role in the Merchants ecosystem. “Evan’s achievements would be significant in any market, but to consistently execute through the recent interest rate and market cycle is remarkable,” said Brian Sullivan, Chief Operating Officer at Merchants Capital. “The strength in Merchants’ capital markets and investor relations platforms is a direct reflection of Evan’s leadership—now evidenced in the multifaceted team he is growing. We applaud his well-deserved promotion and look forward to his continued impact on our company." Previously the head of direct lending at a top U.S. Department of Housing and Urban Development (HUD) lender, Gibson also worked as a commercial mortgage-backed securities (CMBS) bond trader and market maker at Bank of America Merrill Lynch. Gibson is a military veteran and former Infantryman in the United States Marine Corps. He holds a bachelor’s degree in mathematics from the University of Washington.  To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, X, LinkedIn and Instagram.