Press Release

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.
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Merchants Capital Provides $81Million+ Total Financing for New Michigan-Based, Mixed-Use Workforce Development
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.
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Michael Larsen Joins Merchants Capital as Chief Financial Officer
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.
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Merchants Capital Promotes Evan Gibson to Executive Vice President, Capital Markets
CARMEL, Ind. (April 10, 2023) – Leading financial services provider Merchants Capital today announced that it has expanded its executive leadership team with the promotion of Chris Messmann to Executive Vice President. He oversees the tax credit equity division’s asset management, fund and risk management teams, including pre-closing financial projections and post-closing investor reporting.   Messmann contributed to the extensive growth of Merchants’ tax credit equity platform, which boasts more than $1.4 billion of equity under management in its third year of operation and is now a nationally ranked syndicator working with top developer and investor partners nationwide.        “We are extremely fortunate to count Chris among our executive team and congratulate him on this well-earned promotion,” said Julie Sharp, Executive Vice President of Tax Credit Equity at Merchants Capital. “His leadership has been invaluable during the past three years and his promotion is a direct reflection on the investments we are making in our team, systems and processes that will enable us to serve our investor and developer clients for decades to come.” Messmann joined Merchants Capital in 2021, having served in a leadership role for 10 years at a national tax credit equity syndicator. Prior to that, Messmann was a tax accountant at Dauby O’Connor and Zaleski, one of the largest Low Income Housing Tax Credit (LIHTC) accounting firms in the United States. “Our team is achieving remarkable success in the tax credit equity space, reflecting strongly on our innovative platform and dedicated team of professionals,” said Messmann. “I’m honored to join the executive team that is driving our strategic growth.” To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, X, LinkedIn and Instagram.
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Merchants Capital Promotes Chris Messmann to Executive Vice President in its Tax Credit Equity Division
CARMEL, Ind. (March 13, 2024) – Leading financial services provider Merchants Capital today announced that it provided more than $6.2 billion in debt and $656 million in tax credit equity financing for 2023. The company leveraged the Merchants Bank balance sheet for more than $4 billion in production and ended the year with more than $25 billion in assets under management.     Merchants Capital achieved top government-sponsored enterprise (GSE) lender rankings in 2023, including: • #1 Freddie Mac Multifamily Optigo® TAH Lender • Top 5 Fannie Mae 2023 Producers for Multifamily Affordable Housing “It’s been phenomenal to see the evolution of our partnerships with Freddie Mac, Fannie Mae and HUD,” said Dwayne George, Executive Vice President, Agency Production at Merchants Capital. “Continued investment in the platforms will drive greater efficiencies for creative structures and solutions for our clients. Accolades are a great measure of past success; however, the executive team remains grounded in our client-centric mission, vision and values to chart out a path for the future.” The company also attained rankings that include: • Top 10 HUD Lenders of 2023 • #7 Top Mortgage Banking and Brokerage Firms of 2024 by Multi-Housing News • #10 Top Commercial Mortgage Banking and Brokerage Firms of 2024 by Commercial Property Executive Merchants was previously named the #3 Multifamily Affordable Lender by the Mortgage Bankers Association and the #2 Top Affordable Lender of 2022 by Affordable Housing Finance. “Our ability to provide innovative debt products for both market rate and affordable housing projects allows our partners to execute on their financing needs—despite challenging market conditions,” said Lee Oller, Executive Vice President, Originations and head of Merchants’ Chicago office. “It is rewarding to see a growing number of communities being enriched as a result. We thank our clients for their vision and our team for their commitment.” Merchants continued to execute innovative capital markets strategies, closing two securitizations in 2023: a $304 million Freddie Mac Q-Series transaction, the company’s fourth since 2021, and a $1.13 billion Capital Relief Trade (CRT) transaction backed by healthcare commercial real estate (CRE). The CRT is the market’s first such securitization collateralized by CRE assets. It was awarded Honorable Mention for the 2023 North American Transaction of the Year by Structured Credit Investor. Merchants’ tax credit equity platform posted unprecedented growth since its launch in 2021. The platform recently surpassed $1.4 billion in equity raised in three years and posted back-to-back fund closings in December 2023 and January 2024 of more than $430 million. “We gained market share last year despite a pullback from many different lenders and investors,” said Michael Dury, President and Chief Executive Officer at Merchants Capital. “I continue to be very impressed with the execution of our team at Merchants and I am particularly grateful for the trust and the commitment of our industry partners.” Merchants is headquartered in Carmel, Ind. with offices in New York City, Minneapolis-St. Paul, Chicago, Boston and Washington, D.C. To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, X, LinkedIn and Instagram.
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Merchants Capital Provides Nearly $7B in Debt and Equity Financing in 2023
NEW YORK (Feb. 27, 2024)—The New York office of leading financial services provider Merchants Capital today announced a total production volume of $1.7 billion for 2023, surpassing its record-breaking $1.3 billion debt production volume in 2022. These numbers financed the construction and preservation of affordable, multifamily and senior housing nationwide, and notably include $367 million in forward takeouts. “Despite a challenging interest rate environment that has broadly depressed origination volume, Merchants continues to grow and outperform competitors,” said Mat Wambua, Vice Chairman and EVP, Agency Lending at Merchants Capital. “We are proud of our innovation, nimbleness and strong partnerships with clients equally committed to affordable housing. We thank our partners for their continued support.” Merchants Capital regularly collaborates with the New York City Housing Authority (NYCHA), New York City Housing Development Corporation (HDC), Department of Housing Preservation & Development (HPD) and New York Housing Development Corporation (HDC), New York State HFA, Freddie Mac and Fannie Mae. Nationally, Merchants Capital provided nearly $7 billion in debt and equity financing for a variety of multifamily projects during 2023. It was recently named the #1 Freddie Mac Multifamily Optigo® TAH Lender and ranked among the Top 5 Fannie Mae 2023 Producers for Multifamily Affordable Housing and the Top 10 HUD Lenders of 2023. To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, X, LinkedIn and Instagram.
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Merchants Capital New York Provides $1.7 Billion in 2023 Financing, Surpassing 2022 Office Record
Island Terrace Apartments image courtesy of POAH. CHICAGO, Ill. (Feb. 26, 2024)—The Chicago office of leading financial services provider Merchants Capital today announced that it provided more than $54 million of debt and $49 million in Low-Income Housing Tax Credit (LIHTC) equity financing for the rehabilitation of Island Terrace, a 21-story affordable apartment complex located across from the Obama Presidential Center in Chicago’s Woodlawn neighborhood. Preservation of Affordable Housing, Inc. (POAH), a national non-profit affordable housing developer and owner of Island Terrace, closed the complex financing structure on December 20, 2023. Merchants Capital maximized LIHTC equity via a structure called “twinning,” which leveraged both 4% and 9% tax credits issued by the Illinois Housing Development Authority (IHDA) and the City of Chicago. Island Terrace is one of the first HUD-insured housing properties to use this unique type of financing. The 4% and 9% equity syndication generated $31.8 million and $17.3 million, respectively, matched by two corresponding HUD-insured permanent loans totaling more than $22 million and two equity bridge loans totaling more than $32 million. Merchants Bank provided $26.5 million for the property acquisition in 2021.  “It was exciting to draw on the many capabilities we have at Merchants to put this complex transaction together,” said Emmett Donovan, Senior Vice President of Originations at Merchants Capital. “From the initial acquisition funding to the equity, HUD-insured construction / permanent loan and the equity bridge loan, Merchants’ ability to originate all components of the capital structure is truly unique in the market. These debt and equity sources will allow POAH to modernize the Island Terrace property and preserve this important affordable housing asset for the Woodlawn community for generations.” The planned Island Terrace renovations are extensive and will include replacement of the roof, windows, plumbing and electrical systems; a redesigned first floor with community room and laundry facilities; and updated kitchens and bathrooms throughout the 240 apartments. Prior to the recapitalization, only 88 of the project’s 240 units carried affordable restrictions, which could have been canceled at any time, while the balance of the units was unrestricted. The new financing structure enabled POAH to expand the affordability restrictions to include nearly all units while extending the restrictions for at least 30 more years. “Island Terrace is a critical source of affordable housing in this part of Chicago, and we are delighted to invest in its future,” said POAH Vice President for Development Molly Ekerdt in a recent announcement. “With the investments of public and private partners and the involvement of residents, this property will serve low- and moderate-income families for many years to come.” Additional funding sources for the project include a combined $24 million of secondary loans from the IHDA and the City of Chicago. The AFL-CIO Housing Investment Trust also contributed funds to the transaction through its purchase of the securitized HUD Loans.   “The preservation of Island Terrace means there will be more housing that’s affordable to families in Chicago,” said Chang Suh, CEO of the AFL-CIO Housing Investment Trust. “Together we’re getting a lot done, and more needs to be done. That’s what makes this kind of successful, collaborative project so important.” To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, X, LinkedIn and Instagram.
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Merchants Capital Provides $103 Million+ in Total Financing for the Rehabilitation of Woodlawn, Chicago-based Affordable Property
NEW YORK (Feb. 15, 2024)—The New York office of financial services company Merchants Capital today announced that it has provided a $348 million Mortgage-Backed Securities (MBS) loan from Fannie Mae to support the rehabilitation of New York City Housing Authority (NYCHA)’s Reid Apartments and Park Rock Consolidated (Reid Park Rock), a $635.6 million Permanent Affordability Commitment Together (PACT) project that will bring comprehensive renovations for nearly 3,500 residents living in 87 buildings across Brooklyn. The development team of BRP Companies, Fairstead and Urbane, tapped by NYCHA in 2021, will deliver more than $600 million in comprehensive repairs and upgrades to modernize Reid Park Rock. The partners are responsible for property management, enhanced social services and community programs to maintain long-term housing assistance and stability. The Local Development Corporation of East New York will provide tenant and community outreach services.  The straight-to-permanent financing provided by Merchants is designed to recapitalize the PACT Reid Park Rock project, preserve cash and provide immediate rehabilitation support for 15 developments located in Brooklyn’s East New York and Brownsville neighborhoods. Merchants worked with NYCHA and the New York City Housing Development Corporation (HDC) to finalize the deal. “We were able to provide a more expansive financing structure and strengthen counterparty relationships with the inclusion of Fannie Mae products in the transaction,” said Michael Milazzo, Senior Vice President of Originations at Merchants Capital. “It is an honor to support NYCHA and the outstanding development team on additional PACT affordable housing projects.” “We are thrilled to be one step closer to delivering revitalized and transformed residences to nearly 3,500 NYCHA residents across East Brooklyn,” said Meredith Marshall, Co-Founder & Managing Partner of BRP Companies. “We look forward to our continued partnership with NYCHA, Merchants Capital, Fairstead, Urbane, The Local Development Corporation of East New York and The Vistria Group as we look to break ground and advance the project to final fruition that will elevate the overall community experience and ensure long-term housing stability for the residents.” "Fairstead is proud to partner with Merchants Capital New York to realize our shared vision for the future of Reid Park Rock," said Fairstead CEO Jeffrey Goldberg. “Public-private partnerships like PACT are essential for the revitalization of public housing, and we are honored to work with all of our partners as we bring much-needed improvements to the nearly 3,500 residents that call Reid Park Rock home." "We are excited to enter this next phase of partnership with Merchants Capital to provide high-quality public housing improvements and a comprehensive economic empowerment strategy to nearly 3,500 residents at Reid Park Rock," said James Johnson-Piett, Principal and CEO of Urbane. "This investment catalyzes the ability to leverage a best-in-class public-private partnership with the Reid Park Rock partners and the NYCHA residents to position Reid Park Rock as a hub for community wealth creation catalyzed within public housing communities." Merchants Capital collaborated with the development team and affordable housing partners, including project sponsors BRP Companies, Fairstead, Urbane and The Vistria Group; and NYCHA, Fannie Mae, New York City HDC, The Local Development Corporation of East New York, Blank Rome LLP, Nixon Peabody LLP, Sidley Austin LLP, Katten Muchin Rosenman LLP and ArentFox Schiff LLP. To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, X, LinkedIn and Instagram.
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Merchants Capital New York Provides $348 Million in Fannie Mae Financing for the Rehabilitation of 87 Brooklyn NYCHA Properties
67 Flats Rendering
WASHINGTON (Feb. 12, 2024) – The Washington, D.C. office of leading financial services provider Merchants Capital today announced it has secured more than $86.2 million in Freddie Mac 4% Low-Income Housing Tax Credit (LIHTC) Tax-Exempt Loan (TEL) Forwards for the construction of Juniper Square, a senior living community, and 67 Flats, a family housing development, both to be constructed in Glendale, Arizona. The Freddie Mac permanent financing comprises $29.8 million for Juniper Square and $56.3 million for 67 Flats. The projects are also supported by $89 million in equity bridge loans from Merchants Bank and $179 million in construction loans from Barclays Capital, Inc. Juniper Square and 67 Flats will maintain affordability through 2053, which will restrict 100% of units at 60% or less of the Area Median Income (AMI). “We are humbled to be the trusted Freddie Mac Targeted Affordable Housing lender responsible for executing a complex structure with Barclays and US Bank, effectively and efficiently, and recognize the innovative leadership demonstrated by Dominium’s development team,” said Dwayne George, Executive Vice President of Agency Production at Merchants Capital. “We look forward to witnessing Dominium’s transformative vision for affordable senior and family housing unfold in the Glendale community." Juniper Square and 67 Flats are being developed by Dominium, Inc., the fourth largest affordable apartment development and management company in the nation.  “Dominium is excited to start construction on 600 units of much-needed affordable housing in the Phoenix community,” said T.J. McElroy, Senior Vice President of Capital Markets at Dominium. “Dwayne George and the Merchants Capital team went above and beyond to move fast and execute on a complicated transaction in a difficult market. The execution from the entire Merchants team was seamless and showed why they are a leader in the affordable housing space.” Juniper Square will be a 221-unit, 55+ age-restricted property consisting of two four-story residential buildings. Common area amenities include onsite management, elevators, a swimming pool, clubhouse, sports court, central laundry, fitness center, media/theater room, library, hairdresser, pub/game room, recreation and picnic areas. 67 Flats will be a 384-unit midrise multifamily property consisting of 14 three-story residential buildings and four single-story non-residential buildings, including a leasing office, clubhouse and fitness center. Common area amenities include onsite management, a swimming pool, sports court, central laundry, recreational and picnic areas, a playground, game room and indoor kids’ playroom for families and children. In-unit amenities for both properties will include patios/balconies, drapes/blinds, carpet/vinyl plank flooring, central air conditioning, coat closets, ceiling fans, washer/dryer connections, stainless steel appliance packages and walk-in closets. Dominium, the sponsor, officially closed the projects simultaneously in December 2023 and will soon begin construction. Completion of both properties is expected within 24 months, followed by 12 months of leasing. To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, X, LinkedIn and Instagram. 67 Flats rendering courtesy of Dominium, Inc.
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Merchants Capital Secures $175.1 Million+ for the Development of Adjacent Multifamily Properties 67 Flats and Juniper Square in Arizona
CARMEL, Ind. (Jan. 19, 2024) – Merchants Capital today announced large capital raises, including $506.7 million in fund investments closed across the firm’s multi-investor, proprietary and state credit offerings for the year ended Dec. 31, 2023. The firm raised an additional $365 million in tax credit equity in January 2024. The firm’s capital raise, which has surpassed $1.4 billion since the platform launched in 2021, comprises $725 million in multi-investor offerings, $26 million in state credit syndications and $664 million in proprietary fund investments. In December 2023, the firm closed Merchants Capital Tax Credit Equity Fund 16, LLC, a $160 million multi-investor fund with 12 bank investors, including three new investors. In January 2024, the firm closed Merchants Capital Tax Credit Equity Fund 14, L.P., its largest ever fund capital raise at $263 million with a large institutional investor. “Successfully raising $1.4 billion in tax credit equity since launching our platform three years ago is a remarkable achievement—it sets Merchants Capital apart from other new entrants in the tax credit equity syndication space,” said Julie Sharp, Executive Vice President at Merchants Capital. “Our success is a testament to our team, the support of our investor and developer partners and the innovative platform we have built across all business lines at Merchants Capital,” said Linda Hill, Executive Vice President at Merchants Capital. The announcement of record-breaking results in the tax credit equity division follows Merchants Capital’s recognition by Affordable Housing Finance as the #2 largest lender for affordable housing in the United States. “It has been extremely rewarding to build out an equity originations platform in a firm that offers industry-leading debt products and balance sheet solutions for affordable housing developers,” said Josh Reed, Executive Vice President of Acquisitions at Merchants Capital. “We are grateful to our developer and investor partners, who make our success possible.” Merchants Capital’s asset management portfolio includes tax credit equity investments in more than 13,000 affordable homes in 23 states. “Our remarkable production results reflect strongly on the capabilities and investments we have made in our asset, fund and risk management team of professionals who are steadfast in their dedication to our investor and developer partners,” said Chris Messmann, Executive Vice President of Syndications and Tax at Merchants Capital. To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, X, LinkedIn and Instagram.
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Merchants Capital Surpasses $1.4B in Equity Raised Since Inception, with Back-to-Back Closings of $160M Multi-investor Fund and $270M in Proprietary Funds

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