Merchants Capital Closes $196.5MM Multi-Investor Tax Credit Fund to Support Over 2,300 Affordable Homes in 13 States

CARMEL, Ind. (Jan. 6, 2025)—Leading financial services provider Merchants Capital today announced that it secured more than $88 million in financing for Union at Bluffs Run, a new 192-unit affordable housing community in Council Bluffs, Iowa. The financing supports the expansion of The Annex Group’s affordable housing footprint. Union at Bluffs Run will be the developer’s fourth in the state. Merchants Capital secured a $24.9 million Fannie Mae Forward MBS Tax-Exempt Bond (M.TEB) permanent loan and $22.5 million in low-income housing tax credit (LIHTC) equity. A $41.5 million construction loan was provided by Merchants Bank. Affordability for the development will be supported via tax increment financing (TIF) from the City of Council Bluffs and rent restriction to residents earning at or below 60% of area median income (AMI). Union at Bluffs Run is being developed by leading impact housing developer The Annex Group, specialists in creating affordable, workforce, student and market-rate housing communities. The Annex Group has overseen $975 million in single family, multi-family, mixed-use and other commercial projects, including redevelopment and ground-up construction. Located on more than 10 acres, Union at Bluffs Run will comprise four, three-story apartment-style buildings with 72 one-bedroom, 96 two-bedroom, 24 three-bedroom units. Common areas, including a community room, fitness center and leasing office, will be contained in an additional building. Amenities include a playground, dog park and picnic area. “Entering the Council Bluffs area is a natural fit for The Annex Group,” said Ryan Clark, Senior Vice President of Development at The Annex Group. “As an organization, we’ve expanded our footprint in Iowa and see this as another opportunity to bring affordable housing to a growing area that truly needs it. We look forward to becoming a part of this great community.” Union at Bluffs Run is expected to open in fall 2026. 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 (Dec. 5, 2024)—Leading financial services provider Merchants Capital today announced that it secured $19.1 million for the acquisition of Mall West End Revitalization, a 12-acre historic site in Atlanta, Ga. that will be converted into a $450 million mixed-use development comprising a hotel, retail space and 1,045-unit residential housing restricted for seniors, students and workforce. Merchants Capital arranged a $19.1 million land acquisition loan. The financing was provided by Merchants Bank, parent company of Merchants Capital. Founded in 1972, Dominium builds and manages high-quality affordable homes. Renowned locally as a cultural hub, Mall West End will transform 12 acres one mile southwest of downtown Atlanta and support redevelopment planned by co-developers BRP Companies and The Prusik Group, Atlanta Urban Development and Atlanta Beltline, Inc. The site sits within a federal opportunity zone with tax incentives, including tax abatements for new developments. Mall West End is being developed via a joint venture between BRP Companies and The Prusik Group. Prusik Group specializes in the development and repositioning of retail real estate assets, with more than 3 million square feet under management. BRP Companies provides fully integrated real estate development, construction, property management and financial services. Its portfolio contains more than 3,600 units of multifamily housing and more than $6.8 billion in completed and current transactions. “We are proud to revitalize the property into its next chapter, bringing much-needed affordable and workforce housing to the West End community,” said Meredith Marshall, Co-Founder and Managing Partner of BRP Companies. “Through this redevelopment, we look forward to celebrating the cultural heritage of the West End neighborhood while we work to transform the property into a vibrant destination that becomes a central hub for the community.” “The acquisition of the Mall West End is a testament to the power of persistence and determination, and we are immensely proud of the partnerships we've built with the incredible West End Community, the Atlanta University Center, and the City of Atlanta, to whom we extend our heartfelt gratitude for believing in our vision,” said S. Andrew Katz, Co-CEO of The Prusik Group. “We look forward to developing an inclusive mixed-use development that builds on the past and leads to a brighter future.” Residential housing in three of Mall West End’s buildings will include 245 senior housing units, 596 conventional multifamily units and 204 student housing units. In addition, 893 mixed-income workforce rental units that will be restricted at 70% for workforce housing, 20% will be affordable at 50% of the Greater Atlanta Area Median Income (AMI) and 10% at 80% of AMI. Residential amenities will include a fitness center, pool, resident lounge, landscaped terrace, bike and car parking and package room. The development will be located on a public green space one block from a Metro Atlanta Rail Transit Authority (“MARTA”) station. Construction on Mall West End is expected to begin in 2025, with phase one completion slated for 2026. To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, X, LinkedIn and Instagram.

WASHINGTON (Nov. 4, 2024)—Leading financial services provider Merchants Capital today announced $46.6 million in financing for the acquisition of two affordable housing developments for Dominium, a  leading affordable housing owner, developer and manager. The acquisition financing was provided by Merchants Bank, parent company to Merchants Capital. Permanent and mezzanine loans totaling $28.3 million were secured for Villa Hermosa, a 288-unit multifamily development in Albuquerque, N.M., Dominium’s first property in the state. Similarly, more than $18.3 million was secured for Cholla Ranch Apartments, a 180-unit multifamily development in Buckeye, Ariz. Both properties are affordable, with rehabilitation and re-syndication of tax credits being planned. A $13 million tenant-in-place rehabilitation is expected to begin in spring of 2025 at Villa Hermosa with the re-syndication of tax credits. There will be upgrades to unit interiors and common area amenities. One hundred percent of Villa Hermosa’s units are currently restricted to 60% area median income (AMI) and the affordability will remain in place post re-syndication. Dominium will begin a $7 million tenant-in-place rehabilitation and tax credit re-syndication in early 2025 for Cholla Ranch Apartments. One hundred twenty-four units are currently restricted for tenants at 30%, 40%, 50% and 60% AMI; the remaining units are market rate. The re-syndication will render the project fully affordable, with the conversion of market-rate units to units restricted at 70% AMI. The other restrictions will remain in place. Founded in 1972, Dominium builds and manages high-quality affordable homes. The company owns and manages more than 40,000 units in 20 states.Villa Hermosa offers 48 one-bedroom units, 216 two-bedroom units, 24 three-bedroom units with washer and dryer connections and a balcony or patio. The property’s amenities include swimming pool, clubhouse, fitness center and secured gate access and has convenient access to Interstate 40. Cholla Ranch Apartments offers 2- and 3-bedroom units and a clubhouse, pool, spa, playground, covered parking, laundry facility, storage spaces, gym, BBQ/picnic area and courtyards. Located within the growing Phoenix Metropolitan area about 30 miles west of the center of Phoenix, the property is in proximity to employment opportunities in major industries that include aerospace, finance, healthcare, IT, manufacturing, and warehousing and distribution. “We appreciate the partnership of Merchants Capital in helping Dominium further its mission of persevering and building much-needed affordable housing across the United States,” said Mark Lambing, Dominium Vice President and Project Partner. “These two acquisitions enable us to preserve the affordability of nearly 475 apartment homes in Arizona and New Mexico, which will benefit these communities and their residents for years to come.” To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, X, LinkedIn and Instagram.