Press Release

CARMEL, IN (Aug. 22, 2019) – Mortgage banking firm Merchants Capital has hired Matt Winter, AIA, NCARB as Chief Architect at the company’s Chicago office. The move brings the position in-house, setting Merchants up to process new lending opportunities more efficiently while maintaining, and even improving on, the internal monitoring requirements set forth primarily by Freddie Mac. This decision comes in large part due to Merchants Capital’s growing relationship with Freddie Mac and the utilization of its affordable housing products. “We are excited to have Matt join the Merchants family as we continue to expand our Chicago team,” said Michael Dury, President of Merchants Capital. “Matt’s expertise will help streamline our upfront and ongoing construction reviews with our agency products, which are commonly paired with our blanace sheet construction loans. Few projects go 100% according to plan, so having Matt’s experience internally will help us catch problems sooner and better work with our customers to solve any issues that do occur.” In this role, Winter will monitor key factors that lead to the successful finanacing and construction of affordable, senior, health care, student and market-rate projects and share those insights with Merchants’ lenders, analysts and asset managers. Additionally, Winter will use his talents in construction documentation and budget review to ensure new construction projects are appropriately budgeted up front so that Merchants and its customers can avoid critical issues later in the project. Where applicable, Winter will also rely on his experience to perform necessary pre-construction due diligence and construction monitoring reports necessary for project financing. Winter’s role will allow the team to be more flexible with time and resources, therefore improving response time to loan opportunities with a quicker turn. Prior to joining Merchants Capital, Winter spent eight years with GTG Consultants. At GTG, Matt served as an architectural and construction consultant to both lenders and investors. Prior to GTG, Matt has worked for other architectural and construction firms that specialized in single-family or hospitality design and construction. Winter earned his B.S. in Agribusiness and Horticulture from Illinois State University, as well as a B.S and Masters in Architecture from the University of Cincinnati. He is a registered architect in the state of Illinois.

CARMEL, IN (June 27, 2019) – Mortgage banking firm Merchants Capital has secured funding for a new 32-unit workforce housing development in Lafayette, Indiana. This development is part of the state of Indiana’s Lieutenant Governor’s office as a Moving Forward 2.0 workforce tax credit housing development with an emphasis on breaking the barriers that result in generational poverty. Using net-zero construction, the development – known as H38 East Apartments - leverages the Indiana Housing and Community Development Authority (IHCDA) program Moving Forward 2.0, an innovative program aimed at providing affordable, energy-efficient housing and transportation. In partnership with RealAmerica Development, LLC and Area IV Agency, this development will create housing that increases quality of life while decreasing the cost of living for low- to moderate-income individuals and families. The City of Lafayette and Lafayette Housing Authority provided HOME funds and tax abatement for H38 East Apartments. “This innovative affordable housing project, H38 East Apartments, combines a healthy way of living with partnerships that bring together energy efficiency, education and skills development, nutrition and wellness, along with breaking transportation and child care barriers to allow for successful resource and employment development,” said Elva James, executive director of Area IV Agency on Aging and Community Action Programs. All of the units will be priced affordably for low- to moderate-income individuals and families with 30 units priced at 60% of of the area median income (AMI) and two units priced at 50% AMI. Additionally, as part of the Moving Forward 2.0 Program, each household will have the opportunity to participate in an ongoing research study to determine the effectiveness of the program. “This development is one of the first of it’s kind in Indiana, and we appreciate the opportunity to work alongside the RealAmerica and Area IV Agency teams,” said Michael R. Dury, president of Merchants Capital. “Using this unique funding structure, our team was able to provide the construction loan, tax credit bridge financing, and permanent financing which helped streamline the lending process from start to finish.” Using an extremely efficient building design, the new development, located at 3791 Winston Drive, in Lafayette, will include solar power and geothermal features that use 35% of the energy a typical apartment would require. The property is located near Franciscan Health Lafayette East, the YMCA of Lafayette, the Lafayette campus of Ivy Tech, the Tippecanoe Mall and city bus line. “We were honored to be chosen as part of the Moving Forward 2.0 program through IHCDA to help address generational poverty. It truly takes a team to create such an amazing program to help families thrive,” said Ronda Shrewsbury Weybright, president and owner of RealAmerica Development, LLC. “H38 East will do just that with its affordable, net-zero apartment homes and opportunities through supportive services. Seeing the support from the community and businesses coming together to help create such a positive program is remarkable.” Area IV Agency’s onsite Life Skills Coach mentoring program will assist families in areas of life skills, education and career development. Additionally, the development will contract with Enterprise Rent-A-Car to provide a car-share program, Faith Ministries Car Repair and Loan Program, and local transportation providers. H38 East Apartments will also be home to a Community Building with unique amenities, including a classroom, STEM center, technology center, a teaching kitchen and more. Additional community amenities include a playground, community gardens, and recreation and athletic area, along with a fitness and wellness center and a bike-share program.

CARMEL, IN – Mortgage banking firm Merchants Capital has secured $51 million in agency funding for a homeless shelter in the Crown Heights neighborhood of New York City on behalf of Heights Advisors, a leading social impact investor, and Samaritan Daytop Village (SDV), a nationally-recognized human services organization. The project – known as 267 Rogers - embodies an emerging model that New York City is utilizing to eradicate homelessness in the future. Through the Freddie Mac Affordable Housing Capital Markets Execution (CME) Loan Program, this transaction represented an opportunity for Merchants Capital and Freddie Mac to establish themselves as a key counterparty and partner in financing public-benefit multifamily buildings that serve residents most in need. “It has been deeply gratifying to work on the deployment of capital on a project that allows homeless families to live in dignity,” said Mathew Wambua, executive vice president at Merchants Capital. “Projects like 267 Rogers allow the Merchants Capital team to be creative and innovative in solving problems and seeking new financial strategies and structures to solve those problems while serving an immediate need right here in our community.” The property was effectively built as a 165-unit multifamily development under the typical 80/20 structure in New York City. This property is unique, however, in that rather than renting 80% of the units to market-rate tenants, they instead partnered with the Department of Homeless Services (DHS) and SDV to offer transitional housing to homeless families. Thus, the entire property offers affordable housing wherein, 80% of the units are reserved for transitional housing and the remaining 20% are set aside for families earning 60% of the area medium income (AMI) or below. Through the partnership with SDV, the property is able to offer supportive services to all tenants, including employment and job readiness services, daily living workshops, and personal financial management, as well as education and child care assistance programs. “It is a priority for us to contribute and be responsive to the communities we work within. We are excited to work with Steve Banks and the DHS staff to create fully-integrated, quality housing for families in need,” said Rachel Foster, principal and founder of Heights Advisors. “We greatly appreciate the financing the Merchants Capital team was able to provide. We look forward to continuing to work alongside the city and those in the private and nonprofit sector to bring new solutions to the housing crisis.” In April 2016, Mayor de Blasio announced a major restructuring of the way homeless services in New York City are delivered, creating an integrated and streamlined management structure for DHS and the Human Resources Administration (HRA) under the commissioner of the Department of Social Services. The Mayor’s new anti-homelessness plan represents a paradigmatic shift from the way in which previous administrations have mobilized to combat chronic homelessness, transitioning out of the 360 scattered apartment sites and commercial hotel facilities and replacing them with approximately 90 new multifamily transitional housing shelters. New York City plans to open approximately 20 new multifamily transitional housing shelters annually in the next five years to reach its goal of opening approximately 90 new shelters. 267 Rogers represents one of the first multifamily transitional housing shelters that has been developed as the cornerstone of the new mayoral plan.

We are pleased to announce the promotion of Emmett Donovan to FHA Deputy Chief Underwriter!  This is an incredible accomplishment and one that takes years of hard work and perseverance. As a former Vice President at Draper and Kramer Commercial Mortgage Corp., Emmett successfully underwrote all types of FHA loans and helped produce over $1 billion in HUD insured loans. In his capacity at Merchants, Emmett serves as Senior Vice President and as a voting member of the FHA Loan Committee. Emmett Donovan Emmett is a graduate of the University of Kansas and holds an MBA in Finance from the Kellstadt Graduate School of Business at DePaul University. CONGRATULATIONS EMMETT! EMMETT DONOVANSENIOR VICE PRESIDENT, FHA DEPUTY CHIEF UNDERWRITERChicago, Illinois

CARMEL, Ind. (May 9, 2019) – Mortgage banking firm Merchants Capital has arranged nearly $50 million in total financing for three assisted living communities in Ohio: The Ashford at Mt. Washington, The Ashford on Broad and The Ashford on Sturbridge. Merchants Capital secured the bridge loans on behalf of Wallick Communities, which develops affordable assisted living and memory care communities. The bridge financing allows the communities to continue leasing and reach the required time beyond construction completion in order to be eligible to be insured by the Federal Housing Administration (FHA). “Our team closed these loans in less than 70 days from the day of engagement,” said Michael R. Dury, president of Merchants Capital and the portfolio’s leading originator. “We were able to simplify the process because of our unique ability to execute the bridge loan through our parent company, Merchants Bank. During the bridge loan application process, we were able to advise them on structuring the takeout financing via FHA.” The first community, The Ashford at Mt. Washington, received $13 million in financing over 24 months. The 108-unit community is located in Cincinnati, Ohio. The Ashford on Broad received $16 million in bridge financing over 36 months. Comprised of 131 units, the community is located in Columbus, Ohio.  The third and final community is The Ashford on Sturbridge, which received $20 million in financing over 42 months. The 124-unit community opened in early 2019 and is located in Hilliard, Ohio, a middle-class suburb of Columbus. All three communities are designed to serve working- and middle-class seniors, offering rents at 15–30% below those in similar communities. In addition, by using Ohio’s Medicaid Waiver program, residents are allowed to stay once their financial resources have been exhausted. “As baby boomers age and the costs of senior health care continue to rise, the need for affordable, well-maintained communities like these are becoming more and more critical,” said Tom Feusse, CEO of Wallick Communities. “Partnering with Merchants Capital on these projects was vital to our work and fulfilling our mission of Opening Doors to Homes, Opportunities and Hope to seniors across Ohio.” Merchants Capital is a leading multifamily lender offering customized loan products for independent living, assisted living, memory care and skilled nursing projects. A variety of loan products are available to accommodate construction, rehabilitation, acquisition and refinancing of healthcare properties throughout the country.

CARMEL, Ind. (April 18, 2019) – Leading mortgage banking company Merchants Capital today announces the opening of a production office in Chicago, located at 131 S. Dearborn St. in The Loop – the company’s fourth office nationwide. Lee Oller has been hired as executive vice president to lead the Chicago team. Oller brings 26 years of experience as a Chief and LEAN Underwriter and has produced more than 350 closed transactions involving the Federal Housing Administration (FHA) and Department of Housing and Urban Development (HUD) loan platforms. She brings a deep understanding of FHA, multifamily and affordable housing that will allow Merchants Capital to grow its local presence in Chicago and regionally across the Midwest. “Merchants Capital is well known in the industry for its passion for multifamily and affordable housing,” Oller said. “The biggest draw to joining Merchants was the ability to diversify our lending products especially Fannie Mae and Freddie Mac. The additional tools at our disposal, along with Merchants commitment to growth and innovation with the support from its banking operation, Merchants Bank, made the decision easy because of the direct benefit to clients.” Joining Oller in the new Chicago office are four senior vice presidents: Susan Schnoll, Alan Cravitz, Brian Black and Emmett Donovan. Schnoll is recognized in the Wisconsin market for her HUD lending knowledge. Cravitz, Black and Donovan bring more than 80 years of combined multifamily lending experience to the team. “This veteran team complements each other and has worked together for many years,” said Oller of the employees joining her in the new Chicago office. “Our expansion to Chicago with this talented group is a very meaningful step in increasing our national lending footprint,” said Michael Dury, president of Merchants Capital. “Lee’s ability to lead is remarkable. We are very excited to introduce her team to our diverse lending products that will allow them to offer a wide variety of solutions.” This expansion follows Merchants Capital’s announcement that it is now servicing more than $10 billion in loans and was named No. 10 on the Top 25 Affordable Lenders of 2018 list by Affordable Housing Finance. The company continues to seek driven employees for a number of positions in all four offices, including New York City and Saint Paul, Minnesota. For career opportunities, visit our careers page.

To our valued customers, Since opening our doors in 1990, the Merchants Capital team has worked tirelessly to become nationally recognized as a leader and premier provider and servicer of multifamily, senior and student housing. Recently, our hard work and commitment was recognized by Affordable Housing Finance. We’re proud to announce that Merchants Capital was named in the Top 10 Affordable Housing Lenders of 2018!This accomplishment is evidence of our commitment to advancing affordable housing nationally and ranks us among the top affordable lenders in the country. In 2018 alone, our originations team closed 207 loans and generated nearly $2.6 billion in new loan production nationwide.  That included $1.10 billion in affordable housing, demonstrating a 146 percent increase in affordable housing production compared to 2017. Over the past 28 years, Merchants Capital has originated and closed more than $13.8 billion in loans. Thank you for your continued support and loyalty. We wouldn’t be where we are today without your commitment to Merchants Capital. Sincerely, Michael R. Dury, President, Merchants Capital WE ARE MERCHANTS CAPITAL A Multifamily, Affordable, and Healthcare Lender offering a direct way to access fixed rate, long-term, non-recourse financing via our bank, Merchants Bank, all with a single point of contact.

Developments to provide more than 650 affordably priced units for NYC residents CARMEL, IN (Mar. 29, 2019) – Mortgage banking firm Merchants Capital has secured financing for two affordable housing developments, totaling more than $180.6 million, in the New York City area: MEC 125th Street and Caton Flats. Both transactions executed a novel risk-share structure between Merchants Capital, Freddie Mac and New York City Housing Development Corporation (NYCHDC) as the local housing finance agency. These risk-share loans are structured as permanent forward commitments to take out the new construction loans. “The creativity of these two transactions is unparalleled. We are incredibly thankful to our partners at Freddie Mac and NYCHDC for their inventiveness, as well as to our clients for their commitment to ensuring the development of truly transformative projects,” said Mathew Wambua, executive vice president at Merchants Capital. “These projects are a testament to our continued mission to provide quality affordable housing to workforce and low-income families.” Located in East Harlem, MEC 125th Street is a 19-story, 404-unit mixed-use, mixed-income complex that will bring much needed affordable and market-rate units to this revitalized neighborhood. In coordination with NYCHDC, New York City Housing Preservation and Development (NYCHPD), New York City Economic Development Corporation (NYC EDC), Freddie Mac, Citi Community Capital, Blank Rome LLP and Sidley Austin LLP, MEC 125th Street is key in providing greater affordability to residents in Manhattan. The development was financed through a $120 million, 35-year Freddie Mac Forward Commitment loan secured by Merchants Capital on behalf of The Richman Group Development Corporation. “We are excited to be partners in what will be a remarkable addition to thriving East Harlem and to be part of the community,” said Kristin Miller, president of The Richman Group Development Corporation. “This is the culmination of the efforts of many talented people and organizations, as well as over 10 years of hard work and perseverance. It will be amazing to see this project come to fruition.” Fifty percent of the project’s apartments will be offered at rents ranging from 37 percent of the area’s annual median income (AMI) to 80 percent AMI. An additional 23 percent of units will have rents ranging from 130 percent AMI to 145 percent AMI, and the remaining 27 percent will be market rate. The development site is conveniently located one block from the 125th Street Subway and two blocks from Harlem 125th Metro North Station, providing easy access throughout the city and the greater New York Area. The second development, Caton Flats, is the much-anticipated revitalization of the Flatbush Caton Market (FCM), a destination of Caribbean commerce, entertainment and culture in New York City. The approximately 280,000-square-foot, 255-unit project is being developed by BRP Development, Urbane Development and the Caribbean American Chamber of Commerce and Industry (CACCI) in coordination with the NYCHDC, the NYCHPD, NYC EDC, Freddie Mac, Citi Community Capital, Blank Rome LLP and Sidley Austin LLP. Loan proceeds will fund the development of mixed-income housing, ground floor retail, space for community groups, a business incubator, and a new home for the Flatbush Caton Market. Merchants Capital secured the loan through the new Freddie Mac Non-LIHTC Forward Commitment on behalf of BRP Development Corporation. Non-LIHTC forwards are unfunded, forward commitments for affordable housing developed by nonprofits and subsidized, rent-restricted affordable housing that for-profit developers can use for their new multifamily construction or substantial rehabilitation projects. “The financing secures the future of Caton Flats as an incredible source of affordable housing and economic opportunity for community residents and entrepreneurs,” said Andy Cohen, director of development for BRP Companies. “In addition to providing the neighborhood with much-needed housing, Caton Flats will also serve as a center of commerce, entrepreneurship and culture for Flatbush and the surrounding community.” Ten percent of the Caton Flats apartments will be priced affordably at 37 percent AMI. Fifteen percent of the units will be set at 57 percent AMI, and another 25 percent set at 90 percent AMI. The other half of the Caton Flats apartments will have rents capped at 130 percent AMI.

CARMEL, Ind. (Mar. 29, 2019) - Mortgage banking firm Merchants Capital announces today that it has reached a major milestone. As of Dec. 28, 2018, Merchants Capital, formerly PR Mortgage & Investments, now services loans in excess of $10 billion for Merchants Bank and other investors. Since its inception in 1990, Merchants Capital has originated and closed more than $13.8 billion in loans. In 2018 alone, Merchants Capital closed approximately 207 loans and generated nearly $2.6 billion in new loan production nationwide. In 2017, the company closed more than $1.7 billion in new loans. “We are extremely proud of our servicing teams for their continued commitment to providing the highest quality of service to our borrowers,” said Michael R. Dury, president of Merchants Capital. “Reaching this milestone is not only a testament to our highly driven team, but also to our valued customers who trust us and our skilled expertise in providing a direct way to access financing via our bank, Merchants Bank, with a single point of contact.” Merchants Capital provides servicing for a variety of loan types – including Fannie Mae, Freddie Mac and FHA – to meet the needs of a diverse portfolio of affordable, multifamily and healthcare housing loans. The company’s team of professionals specialize in managing the needs of multifamily and healthcare facility loans, providing skilled expertise to investors and borrowers. This milestone comes on the heels of the company’s rebrand to Merchants Capital, which renewed and elevated the company’s commitment to providing and servicing multifamily housing. Merchants Capital also recently announced its new $25 million, 100,000 square-foot headquarters in Carmel, Indiana, opening in 2019. The development will bring an estimated 150 bank employee jobs to the Carmel Midtown area.

CARMEL, Ind. (Mar. 26, 2019) – Leading mortgage banking company Merchants Capital today announces the hiring of Lisa Lundeen as vice president of government-sponsored enterprise (GSE) portfolio management and Toni Gilbert as vice president of insurance compliance to the company’s Saint Paul, Minnesota office. These are both newly created roles. Lundeen brings more than 12 years of multifamily servicing and asset management experience to the Merchants Capital team, with a background in both permanent and construction loans, as well as knowledge of investor accounting and reporting for Fannie Mae, Freddie Mac and Federal Housing Administration (FHA) assets. Since stepping into the role, Lundeen has transformed the GSE Portfolio Management team, which is responsible for performing financial analyses, completing inspections, monitoring repairs and escrows, processing loan events and managing risks of the company’s Freddie Mac and Fannie Mae portfolios. Lundeen will be a critical leader in improving company procedures, as well as leading the implementation of a new servicing and database management application. With the conversion to Precision LM, Merchants continues to demonstrate its commitment to leading the industry in loan servicing. Gilbert’s addition will allow the Merchants Capital team to streamline the process for loan closings and post-closing insurance renewals. Her responsibility will include reviewing insurance information to ensure compliance with Freddie Mac, Fannie Mae, the Department of Housing and Urban Development (HUD) and Merchants Bank standards. Gilbert has 16 years of insurance compliance and multifamily escrow industry experience, as well as a vast knowledge of lender requirements. “We’re excited to have Lisa and Toni in these newly created positions as we continue to expand our Twin Cities office with top talent,” said Michael Dury, president of Merchants Capital. “Providing great service to our customers is, and always will be, a top priority at Merchants Capital.  Lisa and Toni’s unique backgrounds give them an excellent perspective that will greatly impact our day-to-day activities and allow us to deliver a better product to our customers. Lundeen is a 2002 graduate of the University of St. Thomas in Saint Paul, Minnesota, where she earned a Bachelor of Arts in Business Administration degree specializing in Marketing Management. She is currently enrolled in the Mortgage Bankers Association Future Leaders Program, an executive leadership development program that delivers a comprehensive curriculum for selected managers who have shown leadership interests and abilities. Gilbert graduated from Mankato State University in Mankato, Minnesota, with a Bachelor of Science in Business Management degree and a minor in Computer Science. She is a member of the MBA Insurance Stakeholders, holds a Certified Insurance Service Representative (CISR) designation and is licensed as a Minnesota Resident Insurance Producer.