Merchants Capital Expands Debt Originations Team and National Footprint with Senior Vice President Hire

MINNEAPOLIS (April 14, 2025)—Leading financial services provider Merchants Capital today announced $25.5 million in debt and equity financing for the construction of Prairie Pointe, a 42-unit affordable and supportive housing development in Shakopee, Minn. Merchants Capital provided $14.1 million in 9% Low-Income Housing Tax Credit (LIHTC) equity and secured a $11.4 million bridge loan from Merchants Bank for the construction of Prairie Pointe. Developed by leading Twin Cities-based developer Beacon Interfaith Housing Collaborative (Beacon), Prairie Pointe is the only housing development in the area offering on-site supportive services and rents restricted at 30% Area Median Income (AMI). Twenty-eight units will be permanently set aside for people experiencing homelessness and/or people with disabilities, and 14 affordable units will be restricted at 50% AMI. The permanent supportive housing units will operate under the Minnesota Department of Human Services Housing Support rental subsidy program through Scott County, as well as private subsidy provided by Beacon. Volunteers of America Minnesota and Wisconsin (VOA) will provide on-site supportive services. "It was a privilege to lean into Merchants’ in-house equity expertise and collaborative process to structure this transaction for Prairie Pointe,” said Joseph Krengel, Senior Vice President of Originations at Merchants Capital. “Beacon is making remarkable strides in providing comprehensive affordable housing solutions throughout the Twin Cities, and we look forward to future collaborations." "Beacon’s multi-faceted approach is extremely successful in helping communities, and we are proud to partner in this effort to bring additional affordable homes to the area,” said Kelly Berg, Vice President of Acquisitions at Merchants Capital. “The deep affordability and supportive services available at Prairie Pointe will provide great relief for tenants, as well as serve the critical need for affordable housing in the larger community.”   Prairie Pointe will include 1-, 2-, 3- and 4-bedroom units with fully equipped kitchens, laminate countertops, vinyl and carpet flooring and laundry rooms on each floor. Community space includes a gym, donations room, computer and study rooms, children’s playroom and playground. Beacon’s service partner will provide onsite case management, housing stability skills, employment assistance, mental health support and educational programming as needed for residents. "We're so proud to be bringing 42 affordable homes to Shakopee to serve families who have experienced housing insecurity. We know that stable homes are the key to helping parents and children flourish, and for communities to thrive," says Beacon CEO Chris LaTondresse. “And these homes will be made stronger through our partnership with VOA. They have a proven track record of providing high-quality and responsive supportive services to families and individuals to help people meet their goals, achieve housing stability, build their income and access health and community services." Beacon has provided 950 affordable homes and more than 400 LIHTC units to the Twin Cities. More than 650 of these homes are supportive housing, with on-site supportive services available to residents. Construction for Prairie Pointe began in January 2025 and is expected to be completed by December 2025. 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 (March 17, 2025)—Leading financial services provider Merchants Capital today announced $120 million in financing for the construction of Museum Parc, a 250-unit mixed-income, mixed-use and retail development in downtown Newark, N.J. The development will integrate housing units with the 4,120 square-foot Newark Museum of Art (NMOA) gallery and approximately 2,300 square feet of ground-floor retail space, serving as an anchor to the Newark Arts & Education District. Merchants Capital secured $58 million, comprising a Freddie Mac 9% Low-Income Housing Tax Credit (LIHTC) Forward permanent loan and a $62 million construction loan from Merchants Bank for Museum Parc. "This deal represents Merchants’ streamlined internal collaboration, and we are proud of the efficiency demonstrated across the organization to arrange key components in the capital stack,” said Michael Milazzo, Senior Vice President of Originations at Merchants Capital. “Likewise, Museum Parc is a unique concept, representing the innovative ways our partners are providing affordable housing solutions nationwide. We look forward to witnessing its impact in Newark.” Of the 250 apartments, 20 percent will be income restricted. Forty-five units will be affordable to households earning 50 percent of AMI and the remaining five will be reserved for households earning 30 percent of AMI. The development is designed to foster community and connection to NMOA via indoor and outdoor space. It will include a six-story building and a 12-story structure, housing, a fitness center, co-working space, lobby, bicycle room, game room, lounge and speakeasy, as well as a 3,000-square-foot roof terrace accessed through the garden room and commercial kitchen area. Museum Parc is co-developed by LMXD and MCI Collective. As the mixed-income and market-focused member of the L+M family of companies, one of the nation’s leading builders and developers of affordable housing, LMXD focuses on culture, community and sustainability in the Northeast and across the country. Urban revitalization firm MCI Collective delivers quality housing and retail by reimagining urban spaces, with an emphasis on arts and culture to enhance design and value.   “Museum Parc will help anchor the Newark Arts & Education District by providing much-needed mixed-income rental housing, the expansion of the Newark Museum of Art, and ground-floor retail to activate the streetscape,” said Jake Pine, Managing Director at LMXD. “We are grateful for our partners at Merchants Capital for helping make this project happen.” “This project wouldn’t be possible without a top-tier partner like Merchants Capital, whose expertise brought our vision to life,” said Siree Morris, Managing Partner at MCI Collective. “It’s a game-changer for Newark, strengthening arts and culture while supporting the Newark Museum.” Museum Parc is expected to be completed by 2027. 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 14, 2025)—Leading financial services provider Merchants Capital today announced that it provided $7 billion in debt and equity financing for 2024, ending the year with more than $26 billion in assets under management. The firm remains focused on growing market share by leveraging Merchants Bank's dynamic balance sheet to facilitate agency business with existing and new sponsors across the country. "The ability to provide a combination of debt and equity for affordable housing development fueled this year’s production volume," said Mat Wambua, Vice Chairman and head of Merchants Capital’s New York office. "The hard work and collaboration across Merchants’ regional offices and platforms has been exceptional, and I congratulate our team for its proactivity in providing solutions for clients." Merchants Capital achieved top government sponsored entity (GSE) lender rankings in 2024, including: Freddie Mac: #2 Optigo® Targeted Affordable Housing Lender in 2024 Freddie Mac: Top Lender of Forward Rate-Locks for 2024 The company also attained rankings that include: U.S. Department of Housing and Urban Development (HUD): #3 HUD Initial Endorsements by Lender (MAP Applications) of 2023 Multi-Housing News: #7 of Top 20 Mortgage Banking and Brokerage Firms of 2024 Commercial Property Executive:  #10 of Top 20 Mortgage Banking and Brokerage Firms of 2024 "Merchants' strategic loan securitization program provides us with increased balance sheet capacity to more effectively manage capital and support growth objectives," said Evan Gibson, Executive Vice President of Capital Markets at Merchants Capital. "We are well-positioned to continue as one of the top multifamily and healthcare bridge lenders in the country." Merchants’ Capital Markets team executed three securitizations totaling $1.5 billion in 2024, including a $324.6 million Freddie Mac Q-series transaction (the company’s fifth since 2022), a $543.5 million CDS backed by multifamily loans and a $628.9 million cash securitization backed by healthcare commercial real estate (CRE). "Merchants has built internal expertise to manage more aspects of multifamily finance,” said Marsha Goff, Executive Vice President of Originations and head of Merchants Capital’s Minneapolis-St. Paul office. “Clients are benefitting from Merchants’ local market knowledge, ability to execute nationally and services that span from originations to loan servicing.” "We are aligned with partners who provide creative solutions for market rate and affordable housing financing, including historic renovations and office conversions,” said Lee Oller, Executive Vice President of Originations and head of Merchants Capital’s Chicago office. “We’re seeing value being placed on maintaining and creating neighborhoods and communities, which will improve everyone’s quality of life. These projects are particularly rewarding for Merchants.” Merchants Capital 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.