Press Release

CARMEL, Ind. (July 20, 2023) – Merchants Capital is pleased to announce the closing of Merchants Capital Tax Credit Equity Fund 15, L.P. (Merchants Fund 15). Merchants Fund 15 represents the company’s largest and most diverse national fund with a total capital raise of $196.5 million from 14 institutional investors, including 10 repeat and four new investors. Merchants Fund 15 will infuse equity into 19 affordable housing properties that will create or preserve more than 2,300 affordable homes in 13 states. “The successful closing of Merchants Fund 15 would not be possible without the unwavering support from an extraordinary partnership of developers, investors and the Merchants team, and our shared commitment to address the critical need for affordable housing across the United States,” said Ryan Thompson, Vice President of Syndications and Investor Relations at Merchants Capital. “Since launching our national equity platform in 2021, Merchants Capital has raised more than $800 million in tax credit equity and originated over $15 billion in debt to support multifamily housing across the United States,” said Julie Sharp, Executive Vice President of Merchants Capital. “This remarkable achievement has solidified Merchants Capital as an industry leader in affordable housing finance and is a testament to the strength of our team, the steadfast support of our investor and developer partners and the innovative platform we have built.” The closing of Merchants Fund 15 comes on the heels of Merchants Capital’s recent recognition by Affordable Housing Finance as the #2 largest lender for affordable housing in the United States. “We are proud to be at the forefront of affordable housing finance,” said Linda Hill, Executive Vice President at Merchants Capital. “We are incredibly grateful to the team that made this possible and the investors and developers who have entrusted us with the financing for key affordable housing projects throughout the United States.” The 19 properties included in Merchants Fund 15 are located in Minnesota, Indiana, Ohio, Florida, Texas, Wisconsin, Michigan, North Carolina, Illinois, Pennsylvania, Kentucky, Colorado 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.

NEW YORK (July 6, 2023) – The New York office of leading financial services provider Merchants Capital today announces it has secured $11 million in debt and Low-Income Housing Tax Credit (LIHTC) equity financing for the construction of Cedarwood Homes in Pittsburgh, marking the firm’s continued expansion into new markets. The new-build property will bring 46 age- and income-restricted units to Fairywood, one of Pittsburgh’s most western neighborhoods. Together, Merchants Capital’s debt and equity teams secured an $11 million construction and equity bridge loan on behalf of the property developer, Tryko Partners. The funds will provide tax credit equity bridge financing to support construction development costs. “Securing the financing for this property represents a significant milestone for us at Merchants Capital,” said William Jones, Senior Vice President with Merchants Capital. “Since launching our tax credit syndication platform in 2021, we have been searching for projects that allow us to exercise our talents as a full-service lender. Cedarwood Homes granted us that opportunity, and it is also the first LIHTC-financed, senior affordable property in Pittsburgh’s West End in history. We are honored to have worked alongside several of the city’s top housing agencies on such an important property for the people of Pittsburgh.” Situated at the intersection of Broadhead Fording Road and Village Road, and at the former grounds of the Fairywood School, Cedarwood Homes will feature 46 one-bedroom apartments across 12 one-story buildings. Each unit will host a private, ground-floor entrance. In-unit amenities include a washer and dryer and modern, vinyl plank flooring. The property will also feature a community building with management offices, as well as a fitness center, meeting area, kitchen and multi-purpose space reserved for residents. All units at Cedarwood Homes will be age-restricted to individuals 62 years of age and older. Within the 46 total units, 39 units will be income-restricted, with five units reserved for residents earning 20% of the area median income (AMI), 19 for those earning 50% AMI and 15 for those earning 60% AMI. The remaining seven units will be offered at market rate. Merchants Capital was proud to work alongside Tryko Partners and together with Urban Redevelopment Authority of Pittsburgh (URA), Housing Authority of the City of Pittsburgh (HACP) and Pennsylvania Housing Finance Agency (PHFA). “The Cedarwood Homes housing development marks a milestone for the Fairywood neighborhood and its residents,” said Susheela Nemani Stanger, Executive Director of the URA. “After the neighborhood has experienced years of disinvestment, the URA seeks to set things right by beginning a new phase of development and reinvestment into this community. This starts by providing affordable and livable housing to its senior population. We want to thank Tryko Partners, Merchants Capital, HACP, PHFA and all other involved parties that made this project possible.” "We're proud to be working with Merchants Capital, the URA and PHFA to bring sorely needed affordable, senior citizen housing to the West End," said Caster D. Binion, HACP Executive Director. "Funding from HACP's Project Based Voucher/ Gap Financing program is supporting innovative affordable housing developments like Cedarwood Homes in neighborhoods throughout the city, as we continue to use every tool at our discretion in order to meet the growing demand for affordable housing."  Upon completion of construction, Cedarwood Homes will certify to the 2020 Enterprise Green Communities criteria and the U.S. Department of Energy’s (DOE) Zero Energy Ready Home Program, which indicates the units will be designed and built at a high performance to ensure maximum energy efficiency and savings. The property is set to debut Spring 2024. To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, Twitter, LinkedIn and Instagram. Property rendering courtesy of Tryko Partners.

NEW YORK (June 6, 2023) – Leading financial services provider Merchants Capital announces the hiring of Min Park as Senior Vice President, Balance Sheet Construction. Park joins the firm’s New York office, which recently celebrated another year of record-breaking success, having closed more than $1.3 billion in debt financing in 2022. Park brings more than two decades of real estate finance and construction asset management experience to the role, having most recently served as a director at Citi Community Capital. While Merchants originates multifamily and affordable loans on a national scale, strengthening the company’s local presence in the New York market enables better decision making and customer service in this fast-growing region. Min Park “Many companies tout their production numbers, and rightfully so, but Merchants is also proud to celebrate the accomplishments and evolution of our loan servicing team who continue to provide superior service to our clients and investors as we’ve scaled the platform,” said Brian Sullivan, Executive Vice President and Chief Operating Officer at Merchants Capital. “The leadership team has grown through a mix of in-house talent and selective outside hires when the right person is available. Min was clearly the right fit from an experience and cultural standpoint, and we can’t wait to see the impact she’ll have on our team.” Recently, the firm surpassed $20 billion in unpaid principal balance in its servicing portfolio. With this growth, Merchants continues to strengthen its asset management team and technology platform to be best in class. Park will lend her expertise to the construction lending team to proactively oversee and manage risk nationally for the firm’s institutional investors, including parent company Merchants Bank of Indiana. In addition to her prior role at Citi Community Capital, Park also served at Hypo Real Estate Capital Corporation and Equity Office Properties. She holds an undergraduate degree from Cornell University and earned her Master of Science in Real Estate Finance and Investments from the Schack Institute of Real Estate at New York University. 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. (May 10, 2023) – Leading financial services provider Merchants Capital proudly announces the success and growth of its Capital Markets platform, led by Senior Vice President Evan Gibson. Since its inception in 2020, the group has executed over $3 billion in securitizations and has accumulated over $900 million in assets under management. The platform focuses on providing liquidity and capital relief for parent company Merchants Bank of Indiana, to support growth in its direct bridge and construction lending. As a result of successfully executing on this strategy, the Capital Markets team has evolved into creating proprietary permanent debt solutions that supplement Merchants Capital’s balance sheet and agency lending product offerings. Gibson started the Capital Markets group in March 2020, and the team has since grown to seven who work out of the company’s Carmel and New York offices. Notable hires included Vice Presidents Dean Ramsamooj and Darren King in 2021 and 2022, respectively. On March 30, the Capital Markets team, alongside leading seniors housing and healthcare lender VIUM Capital and structuring agent and sole bookrunner ATLAS SP Partners, closed a private synthetic securitization of over $1.1 billion of first-lien floating-rate skilled nursing and seniors housing bridge loans. Merchants Capital will continue to service these loans. Merchants Bank of Indiana issued and sold $158 million aggregate principal balance of Senior Credit Linked Notes, representing approximately 14% of the reference pool. The resulting reduction in risk weighted assets for this pool of loans supports further growth and lending capacity at Merchants Capital and VIUM Capital. This synthetic securitization comes just six months after closing a securitization of $1.2 billion in multifamily bridge loans in September 2022. "Having the opportunity to lead our growing Capital Markets group is an honor, and I am proud of the impact our team has had across the Merchants platform in just our third year of operation,” said Gibson. “Our role in creating innovative solutions directly contributes to the success of the Merchants lending platform and supports the firm’s status as an industry leader in financing both multifamily through Merchants Capital, and healthcare through its partnership with VIUM Capital. This integrated platform is unique in the industry and allows us to continue servicing our clients from coast to coast with an increasing array of solutions and capacity.” In 2021, the Capital Markets group closed its first Freddie Mac Q-Series transaction, a $262 million deal that securitized 15 workforce housing loans for properties across the nation, supporting the preservation of critical housing infrastructure. In 2022, the group executed on its second and third Q-Series deals, a program that Merchants Capital expects to continue to leverage with Freddie Mac in the future. Both 2022 Q-Series transactions were designated by Freddie Mac Multifamily for their Social Bonds program, which has a framework validated through Sustainalytics’ second-party opinion. These transactions have helped define criteria for Environmental, Social and Governance (ESG) qualifying investments in affordable multifamily. “The growth of our Capital Markets group has been instrumental in our ability to lead the industry as one of the nation’s top multifamily financing providers,” said Brian Sullivan, Executive Vice President and Chief Operating Officer at Merchants Capital. “The maturation of the platform in just three years is a true testament to the work ethic and ingenuity of Evan, Dean, Darren and the team. This group has transformed the possibilities of our lending platform, widening our reach in the market and working towards our larger goal of increasing access to safe, high-quality housing for individuals and families nationwide.” 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. (May 1, 2023) – Leading financial services provider Merchants Capital today announces the company has earned a top-ranking position on the prestigious Affordable Housing Finance (AHF) Top Lenders listing, ranking in as the #2 lender nationwide for 2022 – up from #8 last year. Recently, Merchants Capital announced that the firm closed $8.95 billion in debt production in 2022, shattering 2021’s previous record of $7 billion, a 27% increase in a year the industry contracted by 11%, according to the Mortgage Bankers Association. Throughout 2022, Merchants Capital saw significant growth despite a turbulent year for the industry. This included a 77% increase in Merchants Bank balance sheet lending with over $7 billion, a 48% increase in Freddie Mac Targeted Affordable Housing (TAH) production, and a total affordable debt production of $5.9 billion (a 90% increase from 2021). “This recognition would not have been possible without the determination of our team members and the confidence our clients have in Merchants,” said Dwayne George, Executive Vice President, National Head of Production at Merchants Capital. “Being recognized by Affordable Housing Finance as the #2 lender in the nation further solidifies our place in this industry. We are humbled by the accolade and look forward to another year of executing for our clients and counterparties.” Merchants Capital’s innovative and tailored financing solutions help bring critical multifamily housing projects to life across the country. In addition to expertise in tax credit equity syndications and affordable housing, the firm also specializes in bridge and agency financing to support market-rate developments. “The work we do at Merchants Capital helps provide individuals and families with the high-quality, safe and affordable housing they deserve,” said Mathew Wambua, Merchants Capital’s Vice Chair & Head of Agency Lending. “This honorable ranking as the #2 affordable housing lender in the country is a direct result of our dedication to our mission. We’re incredibly grateful to our team all across the U.S., as well as to our valued partners who have entrusted us with the financing of key developments throughout the nation. We look forward to continued success in affordable housing finance for years to come.” AHF Top Lenders is a comprehensive ranking of the top 25 affordable lenders. The annual list was compiled through surveys submitted by lenders in early 2022, detailing the organizations’ 2022 total volumes in affordable debt production. The full ranking can be found here. To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, Twitter, LinkedIn and Instagram.

NEW YORK (April 3, 2023) – The New York office of leading multifamily financier Merchants Capital today announces it has secured more than $25.9 million for the renovation and upgrade of Mirador Las Casas, a Section 8 and Low-Income Housing Tax Credit (LIHTC) multifamily development located in San Juan, Puerto Rico. This project is notable as a return by the Puerto Rico Housing Finance Authority to 4% LIHTC housing bond issuance. The property features 294 units across 21 three-story buildings, with a variety of two-, three- and four-bedroom floor plans. Long term Section 8 and LIHTC agreements ensure the extended affordability for the residents of Mirador Las Casas. The planned renovation will preserve quality living standards in addition to providing residents with new amenities and services. Sixteen of the total units will be reserved for people with functional diversity, including three units marked as “sensory accessible” for those with hearing impairments. Less than four miles from the highly sought after Isla Verde Beach, Mirador Las Casas provides critical affordable housing for low-income families of San Juan. The property is one of 22 owned across the island by the accomplished local developer and investor Fernando L. Sumaza & Co., LLC. Funded sources will support an extensive renovation of the property, including in-unit amenity improvements of kitchens, baths, balconies and installation of in-unit washer and dryer appliances. Additional improvements will include construction of a leasing office, community building, digital library building, basketball court, playground, maintenance building and storage sheds. New sidewalks will be installed throughout the property, and all parking areas will be resurfaced. Merchants Capital New York secured a $25.9 million Merchants Bank of Indiana (MBI) bridge loan on behalf of the property owner. The revolving MBI bridge loan will cash collateralize a $56 million publicly offered housing bond issuance by Puerto Rico Housing Finance Authority and enable the project to comply with federal LIHTC regulations. LIHTC equity for the project was syndicated by The Richman Group. Purchaser’s/Underwriter’s counsel was provided by Tiber Hudson and bond underwriting by Stifel. “Merchants was able to provide an innovative cash collateralized structure for Mirador Las Casas. This loan complies with federal LIHTC 50% test requirements and reduces required interest reserve development costs. Providing a cash collateralized financing product in Puerto Rico represents a major milestone for our team and the affordable housing finance industry,” said Ben Levine, Senior Vice President of Originations at Merchants Capital New York. “Communities in Puerto Rico are still recovering from the devastation of Hurricane Maria in 2017. We are hopeful that by working alongside the Puerto Rico Housing Finance Authority and the development team for Mirador Las Casas we can make a positive contribution to the Puerto Rican community.” “It has been a grateful experience working with Merchants and the other professionals that made this deal possible,” said Alexandra Domenech, President of Fernando L. Sumaza & Co, LLC.  “Merchants' entry into the Puerto Rico financial market provides new opportunities for the development of affordable housing on the island, and we are glad that they started with our project. The Sumaza team is eager to see the families of Mirador Las Casas Apartments enjoying the renovated and modern housing.” 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. (March 28, 2023) — Leading multifamily financing provider Merchants Capital today announces it has secured financing for the development of The Farm, a class A, market-rate property located in Zionsville, Indiana. With 400 total units, the project will be the only one of its kind in the area. Situated at the intersection of Michigan Road and Sycamore Street on more than 48 acres of land, The Farm will bring 400 units to Zionsville with an additional 225,000 sq. ft. of retail and commercial space. The development’s prime location will give residents direct access to the city’s major interstates, allowing convenience to downtown Indianapolis and its surrounding suburbs. Property amenities will include a modern and professional fitness center, co-working spaces, golf simulator, gourmet coffee bar, pickleball court, pavilion with fire pit, upscale dog park, rooftop patio and more. Residents will have access to garage spaces as well as covered bicycle parking. To finance development of The Farm, Merchants Capital secured a Merchants Bank of Indiana (MBI) construction loan for the key developer, Scannell Properties, and co-developer Pittman Investors. Headquartered just east of Zionsville in Carmel, Merchants Capital is a national leader in multifamily financing, with expertise in deal structures supporting multifamily, market-rate and affordable housing properties. Merchants served as a financing partner on The Farm alongside other local parties including Lake City Bank and the National Bank of Indianapolis. “Our roots as a company are in Indianapolis and its surrounding suburbs, and we consistently make it our priority to partner on projects that will benefit our local communities and its residents,” said Anthony Cossell, Transaction Manager at Merchants Capital. “The Farm’s design is authentic to the history of Zionsville and blends premier quality with scale in order to be the perfect addition to the town, an area historically scarce in rental properties.” Construction of The Farm will serve as Phase 1 of the larger Planned Urban Development (PUD) project outlined by the Town of Zionsville. Coined the “Gateway District,” the concept is to improve walkability and accessibility for locals by joining residential living with retail shops, convenience stores, dining and more. Phase 2 of the project will focus on the commercial aspect. “We are thrilled to launch development of The Farm at Zionsville and thank our lender partners at Merchants Bank of Indiana and Merchants Capital for their assistance in getting us to the launching pad. We look forward to working closely with the town and our business partners to ensure The Farm will be a welcoming focal point for living, working, shopping and dining,” said Shawn Hitchcock, Director, Scannell Properties. Debut of The Farm in early 2025 will bring much-anticipated multifamily units to Zionsville, currently a heavily undersupplied rental housing market. Upon its completion, the property will be a state-of-the-art project that will provide the best-in-market rental housing to individuals and families in the region. Pre-leasing is expected to commence in May 2023. 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. (March 2, 2023) – Leading financial services provider Merchants Capital announced it closed a record $8.95 billion in debt production in 2022, surpassing the previous record of $7 billion set in 2021. The firm saw significant growth in many product offerings in 2022, including a 77% increase in Merchants Bank balance sheet lending with over $7 billion, a 48% increase in Freddie Mac Targeted Affordable Housing (TAH) production and an overall 27% increase in 2022 financing volume. Merchants Capital continued to execute throughout 2022 despite turbulent market conditions with unprecedented interest rate volatility. A recognized leader in the affordable housing industry, Merchants’ affordable debt production in 2022 grew dramatically to $5.9 billion, a 90% increase from its $3.1 billion produced in 2021. These record-setting numbers come on the heels of the firm’s recent recognitions as the #3 Multifamily Affordable Lender from the Mortgage Bankers Association, the #4 Freddie Mac Multifamily TAH Lender in 2022 and #4 in the number of U.S. Department of Housing and Urban Development (HUD) 221 (d)(4) deals closed, according to the Federal Housing Authority (FHA) multifamily production summary for fiscal year 2022. “It is a true indication of the tenacity of our employees that we are able to announce yet another record-setting year in debt production for our company,” said Dwayne George, Executive Vice President, National Head of Production at Merchants Capital. “This great achievement could not be accomplished without the trust of our clients and the incredible hard work of our dynamic team. Throughout 2022, the market proved to be full of unique challenges due to unprecedented inflation and interest rate volatility, yet our team remained steadfast in its approach to create flexible solutions for our clients to support the preservation and development of multifamily housing nationwide.” Merchants Capital aims to provide tailored, end-to-end financing solutions for a variety of multifamily housing projects across the nation. The firm specializes in crafting bridge and agency financing structures to support market-rate and luxury developments, in addition to affordable and workforce housing solutions. “We pride ourselves on being able to provide custom financing options that meet the explicit needs of our clients,” said Lee Oller, Executive Vice President, Originations and head of the firm’s Chicago office. “Our innovative product offerings allow us to easily structure and execute deals that support new development, preservation and rehabilitation of critical housing properties in our nation. We look forward to expanding our financial footprint even further as a company this year.” “We are incredibly proud of our dedicated employees who continue to make the Merchants name a fixture in the industry,” said Marsha Goff, Executive Vice President, Originations and head of Merchants’ Saint Paul office. “This milestone is a direct reflection of our teams across the country, and their unique commitment to these projects is truly commendable.” Merchants Capital is headquartered in Indianapolis, with five additional production hubs nationwide located in Chicago, New York City, Saint Paul, Washington, D.C. and Boston, which opened in 2022. To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, Twitter and LinkedIn and Instagram.

SAINT PAUL, Minn. (Feb. 23, 2023) – Leading financial services provider Merchants Capital today announces it has provided approximately $90 million in construction, permanent financing and Low-Income Housing Tax Credit (LIHTC) equity for the development of Solana Villas, a federal LIHTC community to be built in Buckeye, Arizona near Phoenix. The community will be developed by prominent commercial real estate developer Roers Companies, with financing provided by Merchants Capital and Merchants Bank of Indiana (MBI). Solana Villas will be set on approximately 10.7 acres of land and include 200 total units across eight garden style apartment buildings. Upon completion of construction, the complex will include eight three-story buildings and one two-story building consisting of a mix of one-, two- and three-bedroom floor plans. All units will be restricted to individuals earning no greater than 60% of the area median income (AMI). Merchants Capital secured financing for the property consisting of a $33 million MBI tax-exempt construction loan, a $24 million MBI taxable construction loan and a $31.5 million Freddie Mac Tax-Exempt Loan (TEL) forward commitment for the permanent loan. A 4% LIHTC equity investment of $27.8 million was provided by Merchants. “In the past several years we have focused on expanding our presence as an affordable and multifamily financier nationally, and this new property contributes to our overarching goal,” said Marsha Goff, Executive Vice President of Merchants’ St. Paul office. “Solana Villas is a critical piece of the redevelopment landscape in this community, and it has been an honor to partner with Roers Companies to support their first affordable housing build in Arizona.” Roers Companies’ contributions to design and execution of Solana Apartments proved to be pivotal in the initial development process. “This deal represents an exciting opportunity to deliver much needed affordable housing to the Buckeye area,” said Kevin Sturgeon, Senior Development Consultant at Roers Companies, the property developer. “We appreciate our partnership with Merchants Capital and value their creativity in getting this transaction done.” To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, Twitter and LinkedIn and Instagram.

NEW YORK (Feb. 7, 2023) – The New York office of leading financial services provider Merchants Capital announces the firm has set a record-breaking year with its debt production, totaling approximately $1.3 billion during 2022. The total production numbers served to finance and preserve a variety of properties across the nation, including affordable, multifamily and senior housing. This significant year-end milestone serves to highlight Merchants Capital New York’s notable top-tier status as a financier for a diverse portfolio of clients. To achieve this year’s groundbreaking success, the firm serviced a variety of loan structures including balance sheet, Freddie Mac, Fannie Mae and Federal Housing Administration (FHA) products, among others. “The continued success of our New York office is a testament to the stamina and dedication of our employees and their persistence in crafting invaluable deal structures for our clients both locally and nationally,” said Mathew Wambua, Merchants Capital’s Vice Chairman, Head of Agency Production. “Over the years, our New York production hub has served as the gateway to properties and developers along the East Coast, and we saw many of those relationships flourish in 2022. We hope to continue to be a resource for affordable housing development and preservation in 2023 and look forward to another year of great growth and success for our team and company.” As part of its commitment to increasing accessibility and affordability for housing in the United States, Merchants Capital takes great strides to extend its lending volume to numerous affordable project types including preservation and new construction loans for 4%, 9%, Section 8, public, supportive and mixed-income housing properties. Merchants Capital New York is one of Merchants’ six production hubs nationwide, in addition to Chicago, Indianapolis, Saint Paul, Washington, D.C. and Boston, which opened in 2022. Nationally, Merchants Capital provided over $8.9 billion in financing for a variety of multifamily projects during 2022. To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, Twitter and LinkedIn and Instagram.