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.”
“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.”