Press Release

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, 2024) – 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.

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.

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.

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.