Merchants Capital Secures $15M+ for Affordable Housing Development in Charlotte, N.C.

NEW YORK (Nov. 5, 2026)—Leading financial services provider Merchants Capital today announced $185 million in financing for the acquisition and rehabilitation of Nostrand Houses, a 1,148-unit multifamily property located in the Sheepshead Bay neighborhood of Brooklyn, N.Y. It is the first financial closing for the New York City Public Housing Preservation Trust (the Trust), developer of Nostrand Houses. Merchants Capital structured a $185 million taxable loan provided by Merchants Bank for Nostrand Houses; $50 million of the total loan was provided by the AFL-CIO Housing Investment Trust (HIT), who acted as co-lender for the transaction. “With Merchants’ highly collaborative approach, our team was able to provide critical financing for Nostrand Houses in partnership with AFL-CIO HIT,” said Joshua Canan, Senior Vice President of Originations at Merchants Capital. “Merchants Capital is honored to serve as financing partner in support of the Trust, and we look forward to future partnerships that advance affordable housing and strengthen communities.” “We feel a deep debt of gratitude to be counted among dedicated partners who are transforming the state of housing in New York City,” said Mathew Wambua, Vicechair and Executive Vice President of Agency Lending at Merchants Capital. “This closing marks a new model of collaboration through the Trust, inclusive of residents and public and private organizations, and a monumental achievement in fortifying affordable housing development locally.” “Our investment in Nostrand Houses reflects HIT’s strong commitment to New York City,” said Chang Suh, CEO of the AFL-CIO Housing Investment Trust. “Through our collaboration with the New York City Public Housing Preservation Trust, New York City Housing Development Corporation and Merchants Capital, we are helping to preserve and modernize NYCHA housing while delivering sound investments for our pension fund investors and creating good union jobs.”  Nostrand Houses is the first development to participate in the Trust’s Modernization & Preservation (Trust Mod) Program which, in partnership with the New York City Housing Authority (NYCHA), enables the repair, rehabilitation and modernization of traditional Section 9 housing by converting units into the federal Section 8 program. As the largest public housing authority in North America, NYCHA owns 177,565 apartments in 2,410 buildings across 335 conventional public housing and Permanent Affordability Commitment Together (PACT) developments. This project marks the first of more than 25,000 units that are expected to receive capital improvements via the Trust Mod Program. Affordability for the units will be maintained through a conversion under the Rental Assistance Demonstration (RAD) program and the U.S. Department of Housing and Urban Development (HUD) Section 18 process. The Kings Bay Y, selected in coordination with residents, will provide social services, including individualized case management, resource navigation services, housing stability support and crisis intervention. Programs will also be available to support physical and mental health, youth development, family support services, senior programming and workforce development. “The Trust’s first financial closing marks a new chapter for public housing in New York City,” said Vlada Kenniff, President of the New York City Public Housing Preservation Trust. “Together with our residents and partners, we are demonstrating how innovative financing and strong partnerships can deliver long-overdue improvements while keeping public housing public. We thank Merchants Capital for helping us turn this vision into reality.” “We deeply appreciate the creativity and collaboration of the entire Merchants team as we worked toward the Trust’s first closing,” said Elizabeth Propp, Managing Director, Project Finance and Development at the New York City Public Housing Preservation Trust. “The dedication and commitment of Merchants, AFL-CIO Housing Investment Trust, and all of our deal partners will result in direct and meaningful change for the 2,000+ residents of Nostrand Houses.” Nostrand Houses comprises 16 residential buildings, constructed between 1949 and 1951, across two contiguous sites. Its rehabilitation will occur in six phases for individual apartments and building-wide systems, with new kitchens and bathrooms to be installed in addition to new, electrified heating and cooling systems, new elevators, improved accessibility, lead and mold remediation, upgraded security systems and other critical improvements.   Upon completion, current Nostrand Houses residents will return to their fully renovated apartments and modernized buildings. Any vacant one-, two-, and three-bedroom apartments will be available to eligible households through the Project-Based Section 8 program. NYCHA will continue to manage the development, with more than 40 on-site staff members, and new property management and maintenance office to support operations. Construction started in October 2026 and is expected to be completed in 60 months. 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. (Oct. 13, 2026)—Leading financial services provider Merchants Capital today announced $30.7 million in forward committed permanent financing for Central at Old Southside, a 227-unit 4% low-income housing tax credit (LIHTC) multifamily development to be built in Indianapolis, Ind. by The Annex Group. Merchants Capital secured a $30.7 million cash-backed Freddie Mac Forward TEL loan for the development. The property has been awarded an Affordable Housing and Community Development Fund (AHCDF) loan from Indiana Housing & Community Development Authority (IHCDA) and a Payment in Lieu of Taxes (PILOT) agreement from the City of Indianapolis, in addition to construction and LIHTC equity financing in the capital stack. Affordability at Central at Old Southside will be maintained with 10 units restricted to families at 50% area median income (AMI) and 217 units restricted at 60% AMI. "The addition of more than 200 affordable homes will make a meaningful and lasting impact in the Old Southside neighborhood, where the need for quality, affordable housing remains significant,” said Nick Miller, Assistant Vice President of Originations at Merchants Capital. “We are proud to serve as a financing partner for Central at Old Southside and to continue building on our valued relationship with The Annex Group." Based in Fishers, Ind., The Annex Group is a multifamily housing developer with a portfolio of communities valued at more than $600 million. The company has overseen more than $1.1 billion in single family, multifamily, mixed-use and other commercial projects, including redevelopment and ground-up construction. “As an Indiana-based company, it’s always deeply rewarding to develop in our own backyard," said Ryan Clark, Senior Vice President of Development for The Annex Group. "With Central at Old Southside, we are transforming an underutilized infill site into an amenity-rich community. We’re excited to bring high-quality workforce housing to this neighborhood and help fuel the continued growth of the Old Southside area, with great connectivity to downtown Indianapolis and surrounding neighborhoods like Bates-Hendricks and Fountain Square." Upon completion, Central at Old Southside will feature two garden-style, four-story buildings with one, two and three-bedroom apartments. Each apartment will include fully equipped kitchens and washer/dryer units. Residents will have access to a clubhouse, computer, community and library/reading rooms, a fitness center, courtyard with picnic tables and grills, an outdoor playground and dog park. Construction will begin in 2026 and is expected to be completed in 2028. 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. (Oct. 8, 2026)—Leading financial services provider Merchants Capital today announced $97.8 million in financing for the rehabilitation of Stuart Gardens, a 491-unit, two-phased affordable multifamily property in Newport News, Va. developed by Vitus Group. Merchants Capital secured $62.8 million in U.S. Department of Housing and Urban Development (HUD) 221(d)(4) permanent financing and $35 million in equity bridge loans provided by Merchants Bank. Stuart Gardens’ capital stack also includes low-income housing tax credit (LIHTC) equity, federal and state historic tax credits and Green and Resilient Retrofit Program (GRRP) financing via HUD for energy efficient improvements. "Merchants is proud to serve as a financing partner for Stuart Gardens and support its development through various stages, most recently in providing interim financing in advance of additional funding,” said Matt Kaercher, Senior Vice President of Originations at Merchants Capital. “Merchants’ experience and relationship with HUD played a key role in serving the project, and we celebrate Vitus Group’s effort to rehabilitate 491 affordable homes in the Newport News community.” Stuart Gardens comprises 109 two-story buildings, with 489 of 491 units across both properties, 100% of the residential units, restricted to families earning 60% area median income (AMI), under a Section 8 Housing Assistance Payment (HAP) contract. Constructed in 1940, it has been designated as a historic property by the Virginia Board of Historic Resources. External repairs will include a new playground, connections to an adjacent park and walking path, roofing, siding and exterior doors and windows. In-unit repairs will include replacement of existing flooring, updated appliances, new kitchen cabinetry and updated bathrooms. "Stuart Gardens has been home to Newport News families for more than 80 years, and this renovation ensures it will remain affordable for decades to come," said Samantha Cullen, Director of Development at Vitus. "We're grateful to Merchants Capital for helping us secure the financing to deliver modernized homes, lower energy costs and new resident services, all while preserving the community's historic character." During the past 30 years, Vitus Group has provided more than 130 properties and 25,000 affordable multifamily units across 30 states. The company is among the nation’s leading experts in affordable housing, with a proficiency in acquiring, renewing and preserving federally subsidized housing. Upon completion, Stuart Gardens will offer updated one, two and three-bedroom apartments with refinished hardwood flooring, fully equipped kitchens, washers and dryers and renovated bathrooms. The property will feature a playground, clubhouse and onsite management. Located in a mixed-use neighborhood southeast of downtown Newport News, Stuart Gardens sits within a 1.5-mile radius of schools, public transportation, recreation areas, fire and police stations and grocery stores. Construction began in August 2026 and is expected to be completed in January 2028. To learn more about Merchants Capital and its services, visit www.MerchantsCapital.com or find Merchants Capital on Facebook, X, LinkedIn and Instagram.