Press Release

CARMEL, Ind. – Leading financial services company Merchants Capital today announces that Lauren Campbell has joined the firm as Senior Vice President and General Counsel. Campbell is recognized in the industry as a rising star in the legal space, with significant expertise in structuring Low-Income Housing Tax Credit (LIHTC) equity investment funds and multifamily real estate transactions with tax-exempt bonds, monetizable tax credits, federal and state subsidies and agency financing. Campbell joins Merchants from Ice Miller LLP in Indianapolis, where she primarily represented developers on affordable housing real estate transactions. Prior to that, Campbell spent more than seven years as an associate within the tax credit transactions practice group for Holland & Knight LLP in Boston. While at Holland & Knight, Campbell represented nationally recognized tax credit equity syndicators in national fund offerings as well as project-level investments and proprietary investment funds. In her new role, Campbell will join Merchants’ management team and serve as an advisor for upper management, offering guidance on issues relevant to investment fund formation, asset management, tax matters and complex financing structures. She will also serve as a liaison for outside counsel. Campbell holds a bachelor’s degree from the University of Chicago and a Juris Doctor from Boston College. Campbell will be based out of the company’s headquarters in Carmel. 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 announced today the closing of two tax credit equity funds totaling more than $233.4 million. Merchants Capital Tax Credit Equity Fund V, L.P. (Merchants Fund V) represents the company’s first national multi-investor fund with a total capital raise of $172.5 million from 16 institutional investors, including both banks and insurance companies. Merchants Fund V will infuse equity into 18 affordable housing properties that will create or preserve more than 1,958 affordable homes in 11 states. Merchants Capital further announces the closing of Merchants Capital SW Tax Credit Equity Fund III, L.P. (Merchants Fund III), a $60.9 million proprietary fund with a Fortune 500 company that will provide equity capital into eight affordable housing projects structured with Low-Income Housing and Historic Rehabilitation Tax Credits in three states. The investment in Merchants III will create 593 affordable homes in three states and revitalize historically significant housing properties in San Antonio and Kansas City. “The successful closing of Merchants Fund V and III, with more than $233.4 million in capital raised from 17 investors, is a milestone achievement for our affordable housing equity platform,” said Julie Sharp, Executive Vice President of Tax Credit Equity at Merchants Capital. “With more than $22 billion in capital provided to multifamily housing since inception, our company has emerged as a leading debt and equity provider for affordable housing across the United States.” Merchants Capital’s national multi-investor fund, Merchants Fund V, was designed to make a large social impact. The fund is structured with an innovative and first-of-its-kind Social Impact Reserve that is projected to deploy nearly $500,000 in capital to support tenants over the life of the fund. The developer sponsors also include some of the largest affordable housing owner/operators in the nation. “We are grateful to our developer and investor partners for their partnership,” said Linda Hill, Senior Vice President of Tax Credit Equity at Merchants Capital. “The successful closing of Merchants Funds V and III is a testament to the strength of our relationships and innovative platform we have built.” The 25 properties included in Merchants Funds III and V are in Indiana, Minnesota, North Carolina, Ohio, South Carolina, Michigan, Texas, Kentucky, Tennessee, Wisconsin, Missouri and California. To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, Twitter, LinkedIn and Instagram. ###

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

CARMEL, Ind. – Leading financial services provider Merchants Capital is proud to announce that Barbara Girard has joined the firm as Executive Vice President of Asset Management and Servicing, based in Dallas, Texas. Merchants Capital is an approved Ginnie Mae Seller/Servicer, nationally ranked FHA lender and Fannie Mae Affordable and Freddie Mac Optigo Lender. In addition to these programs, Merchants Capital is a full-service tax credit equity syndicator and originates and services loans and investments on behalf of its parent company, Merchants Bank, and proprietary capital partners. Girard’s primary charge at Merchants Capital will be to enhance the loan surveillance and asset management systems and teams, as Merchants continues to grow and evolve its investor base and product types. “This is a big milestone for our company,” said Brian Sullivan, Chief Operating Officer at Merchants Capital. “We continue to invest in the back end of our business to keep up with the terrific innovation happening in new product development, with the growth of our GSE platform, new proprietary capital products and the launch of our syndication platform for monetizable tax credits. Our investment in technology has been front and center, and now we have another leader who can really leverage it effectively.” A graduate of Babson College, Girard has over 20 years of commercial real estate asset management experience. Most recently, Girard served as managing director, asset management at NewPoint Real Estate Capital, formerly Barings Multifamily Capital, a subsidiary of Barings, an S&P-rated servicer monitoring performance of a $32 billion portfolio of assets throughout the United States. Prior to Barings, Girard was an asset manager at Prudential Financial and tax credit syndicator MMA Financial, a predecessor firm to Boston Financial. To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, Twitter, LinkedIn and Instagram. # # #

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

CARMEL, Ind. – Merchants Capital is proud to announce that Julie Sharp, Senior Vice President of Tax Credit Equity, has been appointed to the Affordable Housing Tax Credit Coalition (AHTCC) Board of Directors. Sharp’s appointment became official in early July. The Affordable Housing Tax Credit Coalition is a leading industry trade organization and advocacy group based in Washington, D.C., focused on advocating on behalf of the Housing Credit to finance affordable housing in the United States. Founded in 1988, the AHTCC seeks to preserve, expand and improve the Housing Credit through legislative and regulatory outreach and education. Sharp joined Merchants Capital in March 2020. Under her leadership, Merchants has expanded its service offerings to include a robust tax credit equity platform, allowing the company to serve as a full-service financing provider for affordable housing. “I am honored to represent Merchants Capital on the AHTCC Board of Directors,” Sharp said. “In a time of unprecedented demand for safe, quality affordable housing in our country, I am eager to join the AHTCC board in our support for the Housing Credit as one of the most successful public-private partnerships in our nation’s history that has directly produced more than 3.5 million affordable homes since inception.” As part of the AHTCC Board of Directors, Sharp will serve as an advocate for the Housing Credit on a national stage. She joins a prestigious group, serving alongside some of the country’s top real estate and affordable housing industry professionals. Sharp is also a board member for the Indiana chapter of the Women’s Affordable Housing Network. To learn more about the tax credit equity syndication platform, 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. – Financial services company Merchants Capital announces today it has provided $18.2 million in total refinancing for Eden Housing, a nonprofit that has partnered with local communities to develop or acquire more than 10,600 homes in communities throughout California. The proceeds will be used to rehabilitate two affordable housing communities in the state: Emerson Arms and Arroyo Vista. Located in the San Francisco-Oakland-Berkeley area, Emerson Arms is a 32-unit affordable apartment community with four one-bedroom units and 28 two-bedroom units within three residential buildings. All 32 units are covered by a long-term Option 5 HUD project-based Section 8 contract. The property was constructed in 1973 and last renovated in 2003. Rehabilitation plans include replacing the exterior podium and walkways that service each unit, new railings and exterior stairs, garage ceiling replacement/ventilation, traffic coating on walkways, roof and gutters replacement, window and sliding door replacement, building exterior painting and ADA compliant walkways. Secondly, Arroyo Vista is a 156-unit affordable apartment community located in Mission Viejo, Orange County, California, approximately 70 miles north of San Diego and 50 miles southeast of the Los Angeles central business district – an area in need of affordable housing. Constructed in 1995, the apartments have 36 one-bedroom units, 72 two-bedroom units, 40 three-bedroom units and eight four-bedroom units within nine two- and three-story residential buildings. All units are encumbered by a combination of rent and income restrictions ranging from 35% to 60% Area Median Income (AMI) through various regulatory agreements. Current resident amenities include on-site management, clubhouse, fitness center, playground, sports court, common laundry, pool and a spa. Rehabilitation plans include major plumbing upgrades throughout the entire property to address slab leaks, exterior stairs and railings, window replacement, carport and trash enclosure repairs, playground, in-unit HVAC, upgraded appliances and countertops and cabinets replacement. “It’s just as vital to preserve and recapitalize affordable housing as it is to produce it,” said Dwayne George, Executive Vice President, Head of Production at Merchants Capital. “With constraints on Private Activity Bond Volume Cap in state of California, Merchants is optimistic that partnering with key organizations such as Eden Housing to pilot creative debt solutions will complement California Housing Finance Agency (CalHFA) efforts to address the affordable housing crisis in the state of California.” Eden Housing currently serves a diverse population of 22,000 low-income residents from all cultures and backgrounds. The company services very low-, low- and moderate-income families, seniors, veterans, people living with physical, mental or development disabilities and the formerly homeless. “As we continue to face unprecedented times – where our portfolios are aging but we lack the variety of feasible financing solutions to address the physical needs – it is critical to have organizations like Merchants Capital that aim to step in and help affordable housing operators explore various solutions to meet our needs,” said Darnell Williams, Eden Housing Senior Director at Asset Management. “Like many affordable housing providers, we are feeling the implications of bond financing constraints. These two properties – although very different financial profiles – were each in need of a seven-figure capital infusion to buy us time before the next tax credit syndication is available. Dwayne and I began strategizing on possible loan products to address our needs and with his background in GSE financing, he was able to help us consider options that best suited each property. It has been a joy to work with him and his team on these deals.” To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, Twitter, LinkedIn and Instagram.

CARMEL, Ind. – Financial services company Merchants Capital today announces an expansion of the tax credit equity team with two senior hires in the acquisitions and underwriting divisions. Laurie DiBona joins Merchants Capital as Vice President of Acquisitions in Boston. In her new role at Merchants, DiBona will manage relationships with top affordable housing developers in the United States, negotiating and structuring lower tier partnership agreements. DiBona previously spent 12 years in the equity acquisitions and asset management divisions at Boston Capital and R4 Capital. Lisa Zebro joins Merchants Capital as Vice President and Deputy Chief Equity Underwriter in New York. Lisa was previously a Manager in Ernst & Young’s tax credit equity division, where she spent 13 years opining on real estate underwriting, transaction structure, tax risk and feasibility for investments in tax credit funds sponsored by the nation’s largest tax credit syndicators. In her new role at Merchants Capital, Zebro is responsible for underwriting lower tier and upper tier investments in tax credit equity funds sponsored by Merchants Capital. “We are pleased to have these extraordinary women join our team, both of whom are experts in the tax credit equity field,” said Julie Sharp, Senior Vice President at Merchants Capital. “In a time of unprecedented growth in the equity syndication division, Merchants Capital continues to add industry-leading talent in key roles, solidifying our position as best-in-class in affordable housing finance.” 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’s real estate equity team, in partnership with First Merchants Bank, The National Bank of Indianapolis, and Merchants Bank of Indiana, announces the closing of Indiana Social Impact Housing Equity Fund II, LP. The Fund targets large scale revitalization of vacant single-family homes in traditionally disinvested neighborhoods in and around downtown Indianapolis. The fund infused $2.7M in institutional private equity to support the mission of Full Circle Development. Full Circle will target investment in underserved center city neighborhoods to construct or rehabilitate vacant or abandoned homes, prioritizing women- and minority-owned contractors and subcontractors. Target homebuyers of the as-renovated homes are existing neighborhood residents and families that work in or near downtown with household incomes lower than 120% of the area median income. The added hope is that investment in these communities revive schools and parks, attract businesses, reduce crime, and improve the overall quality of neighborhood living in central Indianapolis. “This capital infusion allows Full Circle to work at scale to address Indy’s dramatic shortage of quality homes attainable to workforce homebuyers, while being a part of re-establishing a thriving real estate market at the neighborhood level,” said Mark Buckingham, President of Full Circle Development. “We’re excited to embark on this joint effort that affirms our mission of helping our communities thrive,” said Mike Stewart, President of First Merchants Bank. “The fund offers a holistic approach to improving our neighborhoods because it reduces vacant homes but also prioritizes current residents and employing minority- and women-owned contracting businesses.” “We are proud to be an investor in Merchants Capital’s Indiana Social Impact Housing Equity Fund II.” said Mark Bruin, President and CEO of The National Bank of Indianapolis. “The National Bank of Indianapolis believes that through equitable access to capital and dynamic lending partnerships such as this, we can help build a thriving community where families have access to quality affordable housing.” “We share a passion with Full Circle Development and our investment partners that quality affordable housing can revive communities in the great city of Indianapolis.” said Michael F. Petrie, Chairman of Merchants Bank of Indiana. “We thank them for their partnership.” To learn more about  Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, Twitter, LinkedIn and Instagram.

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