Merchants Capital Secures $30M+ for 227-Unit Affordable Multifamily Development in Indianapolis, Ind.

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.

NEW YORK (Sept. 2, 2026)—Leading financial services provider Merchants Capital today announced more than $138 million in financing secured for North White Plains Workforce Transit Hub, a mixed-use community developed by BRP Companies, with 296 residences, retail and community space located in a fast-growing transit corridor in Westchester County, N.Y. It is the first project to close on financing under New York State Homes and Community Renewal’s (HCR) Housing Acceleration Fund (HAF) program. Merchants Capital secured a $120.5 million construction loan provided by Merchants Bank for North White Plains and facilitated $18 million from the HAF, a revolving loan fund that provides financing for shovel-ready mixed-income multifamily developments requiring additional gap funding. "As an approved lender and one of the first awardees of the Housing Acceleration Fund, Merchants Capital is proud to be part of an initiative aggressively focused on increasing affordable housing supply and finding ways to overcome potential hurdles in bringing such housing to fruition,” said Mark Branigan, Transaction Manager at Merchants Capital. “North White Plains is poised to support the community in a multi-faceted way.” North White Plains will comprise two six-story buildings with studio, one and two-bedroom apartments, with five homes restricted to households earning between 50% and 60% area median income (AMI) and 25 homes restricted to households earning up to 110% AMI. Two hundred sixty-six units will be rented at market rate. The development will comply with LEED Silver certification and New York State Energy Star standards, supporting long-term environmental performance and operational efficiency. “Governor Hochul’s innovative Housing Acceleration Fund is part of New York’s all-of-the-above approach to increasing housing supply,” said HCR Commissioner RuthAnne Visnauskas. “By providing low-cost financing for mixed-income housing projects, we are jumpstarting construction of new apartments that will benefit families, seniors, young adults, and those looking for a modern place to live. We are thankful to the Governor for her bold vision on creating this cutting-edge program and are grateful to all the North White Plains project partners for bringing nearly 300 new homes to the city of White Plains.” "North White Plains reflects the future of residential development, creating thoughtfully designed communities that connect people to housing, transit and opportunity," said Steven Smith, Partner of BRP Companies. “As housing demand continues to grow throughout the region, developments like this play an important role in expanding access to high-quality homes while strengthening surrounding communities, and we are grateful to all of our financing partners for helping bring this vision to life.” An innovator in developing mixed-use, mixed-income, walkable urban housing with high-quality and energy efficient properties, BRP Companies manages an over $6.7 billion portfolio with more than 7,400 units of multifamily housing and 16.9 million square feet of planned, current and completed development. North White Plains will support community interaction and activity throughout its walkable grounds. The development will include a fitness center, resident lounge, co-working and event space, with 1,000 square feet of ground floor retail space to house a coffee shop, a 15,000 square foot public park and two-level parking garage. Construction began in July 2026 and is expected to be completed in Q2 2029. 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. 24, 2026)—Leading financial services provider Merchants Capital today announced $193.8 million in total financing provided for the construction of The Frances and The Steven, a pair of low-income housing tax credit (LIHTC) developments to be built in Rocklin, Calif. Developed by USA Properties Fund, Inc., the communities will provide 504 new affordable apartment homes for seniors and families across a range of income levels. The developments will help address the growing need for high-quality, affordable housing in the Rocklin and greater Placer County community. For The Frances, Merchants Capital structured and will service a $72.1 million private placement bond loan through AllianceBernstein. Merchants Bank is also providing $76.1 million in construction period debt to bridge incoming tax credit equity and permanent bond financing for the transaction. Merchants Capital structured a $30.6 million private placement tax-exempt bond loan through AllianceBernstein for The Steven, alongside $15 million in construction period debt from its parent company, Merchants Bank. “Increased costs and rising interest rates present dual challenges for all new housing construction today, and working with AllianceBernstein and USA Properties Fund, we used recycled bond cap and senior subordinate bond structures to close the last funding gap,” said Peter Nichol, Senior Vice President of Originations at Merchants Capital. “USA Properties’ yearslong commitment to these projects will bring more than 500 new affordable housing units to the City of Rocklin.” Since it was founded in 1981, USA Properties Fund’s values, leadership and team structure have been integral to its success in the development, construction, acquisition and rehabilitation of 138 properties totaling 19,913 apartment homes for families and seniors throughout California, Nevada and Oregon. The Roseville-based company is one of the top 50 largest affordable housing developers in the country, with teams dedicated to developing, building and managing multifamily communities. “The Steven and The Frances will bring much-needed quality affordable housing to south Placer County, allowing more residents to live closer to where they work, attend school and their families,” said Geoff Brown, President of USA Properties Fund. The company’s headquarters are just a few miles from the new apartment communities. “Merchants Capital is a valued partner that recognizes and supports our commitment to the community and its residents.” The Steven will add 180 one and two-bedroom apartments for seniors, aged 55 and up, restricted from 30% to 70% area median income (AMI). The nonprofit LifeSTEPS will provide support services to residents, including classes in health and wellness, financial literacy, computer training, homebuying, general education, resume building and nutrition. The apartments will feature fully equipped kitchens, central air conditioning and common amenities, including a clubhouse, fitness center, library, computer room, swimming pool, barbeque and lounge areas, dog park, secure electronic access and laundry room. The Frances will feature 324 one, two and three bedroom apartments restricted from 30% to 70% AMI. The apartments will feature fully equipped kitchens, central air conditioning and walk-in closets. Residents will have access to a range of community amenities, including a swimming pool, playground, exercise room, courtyard/picnic area, community room, dog park, laundry room, computer room, service coordinator and on-site manager. Construction of The Steven and The Frances began in May 2026 and August 2026, respectively, and the developments are expected to be completed in 2028 and 2029. To learn more about Merchants Capital and its services, visit www.MerchantsCapital.com or find Merchants Capital on Facebook, X, LinkedIn and Instagram.