Affordable Housing

NEW YORK (Feb. 12, 2025)—The New York office of leading financial services provider Merchants Capital today announced a total production volume of $2.2 billion for 2024, setting a new threshold for debt and tax credit equity investments in multifamily affordable housing. These numbers financed the construction and preservation of affordable, multifamily and senior housing nationwide. Merchants Capital’s New York office provided $1.9 billion in debt, leveraged from government-sponsored enterprise (GSE) loans and Merchants Bank’s balance sheet, and $213 million in equity investments. "Merchants draws on a great deal of internal debt and equity expertise to execute various financing structures for affordable housing development," said Mat Wambua, Vice Chairman and EVP, Agency Lending at Merchants Capital. "This, combined with our streamlined approach, is fueling Merchants’ growth despite a challenging market, while also creating efficiency for our clients. Together, we are making a tangible impact in the affordable housing industry." Nationally, Merchants Capital was recently named: Freddie Mac: #2 Optigo® Targeted Affordable Housing Lender in 2024 Freddie Mac: Top Lender of Forward Rate-Locks for 2024 MHN : #7 of Top 20 Mortgage Banking and Brokerage Firms of 2025 CPE:  #9 of Top 20 Commercial Mortgage Banking and Brokerage Firms of 2025 Commercial Observer: #33 on the Power Finance 2024 List; among the 50 most influential players in commercial real estate Merchants Capital regularly collaborates with the New York City Housing Authority (NYCHA), New York City Housing Development Corporation (HDC), Department of Housing Preservation & Development (HPD), New York State Housing Finance Agency (HFA), Freddie Mac and Fannie Mae. 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 (Jan. 21, 2025)—Leading financial services provider Merchants Capital today announced $129.1 million in financing for the New York City Housing Authority (NYCHA) $419.6 million renovation of Boston Road Plaza, Boston Secor, and Middletown Plaza (BBM) in the East Bronx. The renovations will span three housing developments and six residential buildings that total 952 units. Merchants Capital provided a $129.1 million New York Housing Development Corporation (NYHDC) Freddie Mac Risk Share Loan to support rehabilitations under the Permanent Affordability Commitment Together (PACT) program. To date, Merchants has provided approximately $2 billion in financing towards roughly 9,000 units as part of PACT projects throughout New York City. The BBM developments will transition to the U.S. Department of Housing and Urban Development (HUD) Section 8 program as part of HUD’s Rental Assistance Demonstration (RAD) conversion program to further support property modernization, long-term assistance and affordability. “Our work to support and preserve affordable housing throughout New York City endures via renovated NYCHA deals that are improving neighborhoods incrementally,” said Mat Wambua, Vice Chairman at Merchants Capital. “The Bronx will be vitally enriched as a result of these enhancements. We appreciate the opportunity to apply our structuring expertise and align once again with our PACT partners who are committed to making a difference." BBM renovations are being led by the Bronx Revitalization Collaborative (BRC), a joint venture between Beacon Communities, Kalel Companies and MBD Community Housing Corp. Beacon Communities is an owner, developer and manager of affordable and mixed-income housing across the northeast, with nearly 19,000 apartments in 11 states. MBD Community Housing has constructed and renovated more than 2,300 units of housing; its portfolio contains 39 buildings and 1,200 housing units. New York City-based Kalel Companies is a minority-owned business enterprise (MBE) with experience in NYCHA PACT renovations. “We are thrilled to be partnering with NYCHA, fellow PACT team members, and the residents of Boston Secor, Boston Road Plaza, and Middletown Plaza to preserve and improve existing housing stock while dramatically enhancing quality of life,” said Beacon Communities Chief Executive Officer Dara Kovel. “Beacon is privileged to continue our commitment to providing high-quality housing through comprehensive physical improvements, resident engagement, and enhanced service provision. The project exemplifies Beacon’s 40-year history of responding to residents in large-scale revitalization projects and partnerships with public housing authorities.” “The Kalel team is thrilled to continue this partnership with NYCHA, Beacon, MBD and our financing partners to preserve and create housing opportunities for residents throughout New York City,” said Kalel Companies Founding Principal Pierre Downing. “We are eager to commence work alongside the residents, families, and resident leadership to deliver the comprehensive renovations and expanded services provided through NYCHA’s PACT program across the Boston Secor, Middletown Plaza and Boston Road Plaza communities.” “MBD is proud to be part of PACT for Boston Road Plaza, Boston Secor, and Middletown Plaza,” said MBD Community Housing Corporation Chief Executive Officer Derrick Lovett. “This endeavor, which will enhance the quality of life for nearly 1,600 residents across 951 units through extensive renovations, improved property management, and expanded social services, aligns closely with MBD’s mission to preserve and expand affordable housing opportunities throughout the Bronx. We are excited to collaborate with tenant leadership, our development and management partners, as well as NYCHA, to bring this project to fruition. This partnership highlights the power of cross-sector collaboration in positively transforming our communities.” Upgrades to unit interiors, exteriors and shared spaces are planned. Units will receive improvements to bathrooms and kitchens, new doors and flooring and fresh paint. All three developments will be outfitted with new roofs, modernized elevators, free Wi-Fi for households and electrical, heating, cooling, plumbing and ventilation upgrades. The grounds will be restored with landscaping, concrete pavement, new seating areas, bike racks, walking paths and playgrounds. Repairs are underway and are expected to be completed in 2026. 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. (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. 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.

NEW YORK (Oct. 1, 2024)—Leading financial services provider Merchants Capital today announced that it secured more than $100 million in debt and equity proceeds for the acquisition and rehabilitation of Travis Park Apartments, an affordable housing development in Austin, Texas. "Merchants was able to demonstrate our array of innovative affordable housing financing products economically and efficiently to deliver for Sena Affordable Communities in an expedited timeframe,” said Michael Milazzo, Senior Vice President of Originations at Merchants Capital. “The collaboration between Sena and our debt and tax credit equity platforms was truly outstanding, and we are honored to be a part of securing Travis Park’s long-term affordability in the Austin market.” Merchants Capital provided a $69.15 million Freddie Mac 4% Low-Income Housing Tax Credit (LIHTC) Immediate TEL loan and $37.6 million in LIHTC equity as the syndicator. Merchants Bank provided a $29 million equity bridge loan during the rehab period. “We are excited to continue our relationship with L+M Development Partners and TCC Hill Country Development Corp,” said Marcin Dzido, Vice President of Acquisitions at Merchants Capital. “The Travis Park renovation ensures that 199 low-income families have safe, high-qualify housing for years to come.” Sena Affordable Communities, an affiliate of L+M Fund Management (LMFM), is a dedicated acquisition rehabilitation business known for strengthening communities with innovative affordable housing solutions to significantly reposition assets with Low-Income Housing Tax Credits and tax-exempt bond financing. The Travis Park Apartments rehabilitation will involve improvements to the grounds, building exteriors, unit interiors and deferred maintenance across 22 buildings. The scope of work includes the addition of new outdoor recreation areas, playgrounds, extensive accessibility upgrades, window replacement, new boiler and cooling towers, kitchen and bathroom improvements, new energy star appliances, replacement of original fan coil units for heating and cooling, building envelope upgrades, roof replacement and signage. A Freddie Mac Impact Sponsor, L+M Development Partners and its affiliated companies, including LMFM and Sena, have more than 55,000 high-quality residential units in construction or acquired, preserved or completed in markets across the United States. "With funding now secured for Travis Park Apartments, we look forward to protecting its long-term affordability and delivering critical improvements that will enhance the quality of life for all residents," said Jeffrey Moelis, Managing Director, Sena Affordable Communities. "Our planned upgrades, combined with Travis Park's optimal location near downtown Austin, will ensure this community can thrive for decades to come, especially as the area continues to boom. We are grateful to our partners at Merchants Capital for their work in helping us reach this milestone." Travis Park Apartments is located in South Central Austin, with regional access to Interstate 35, US Highway 290 and MoPac Expressway, and near downtown entertainment districts and outdoor attractions, including the riverwalk. Renovations are expected to be completed in 18 months. To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, X, LinkedIn and Instagram. Travis Park Apartments, image courtesy of SVN Affordable | Levental Realty

WASHINGTON (Sept. 24, 2024)—Leading financial services provider Merchants Capital today announced more than $59 million in financing for the rehabilitation of Amber Commons, a 198-unit multifamily housing development in Gaithersburg, Maryland. Merchants Capital provided a $37.7 million Freddie Mac Immediate TEL permanent loan, and Merchants Bank provided a $21.3 million equity bridge loan for the rehabilitation. Previously a market-rate property with several moderately priced dwelling units (MPDUs), Amber Commons will be an affordable housing development with an average rent restriction of 60% area median income (AMI). Affordability is supported by the LIHTC syndication with the Maryland Department of Housing and Community Development (DHCD). "Amber Commons is expanding the amount and quality of affordable housing in Gaithersburg with these upgrades, which are on par with, and in some cases, surpasses the current housing comparables in the market area,” said Ayanna Grasty, Vice President of Originations at Merchants Capital. “We applaud MRK Partners’ detailed approach to improving the quality of life in communities and our partners’ commitment to providing expansive affordable housing solutions.” Amber Commons is being developed by real estate investment and asset management company MRK Partners, specialists in acquisition, preservation, and repositioning of affordable housing. The company currently has more than 4,000 units under management. Interior and exterior enhancements will be rolled out across Amber Commons’ 17 three-story garden apartment buildings and common areas, including new roofing, windows and exterior lighting, new flooring, water heaters, HVAC condenser and furnace replacement and kitchen/bathroom upgrades. Accessibility upgrades will be made across the property, and sustainable improvements will achieve Enterprise Green Communities Criteria (EGCC). “We are deeply proud of the transformation of Amber Commons from a market-rate property to affordable housing, providing 198 affordable units for at least the next 30 years,” said Sydne Garchik, Founder and President of MRK Partners. “Equally exciting is the comprehensive renovation underway, which will provide upgraded units, energy efficiency updates and enhanced community spaces. We believe that everyone deserves access to quality, affordable housing, and we are especially proud to bring this vision to life in the city of Gaithersburg. This achievement is made possible through mission-driven partnerships, including our collaboration with Merchants, our nonprofit partner PSCDC, our equity partner R4 Capital, and our bond issuer Maryland CDA. We want to give special recognition to Montgomery County, our county loan lender, for their crucial support.” The renovation is expected to be completed in August 2025, following a 13-month construction period. 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. (Sept. 19, 2024)—Leading financial services provider Merchants Capital today announced the completion of its fifth Freddie Mac-sponsored Q-Series transaction, a $324.6 million securitization of 13 stabilized multifamily mortgage loans. The $324.6 million in loans includes 13 properties and 2,890 units across seven states with the largest concentrations in Indiana, Ohio and Iowa. The properties contain 66 to 492 units with 67% of the units affordable to households earning below 80% of the area median income (AMI). This transaction, which closed in April, is Merchants’ largest Q-Series transaction to date. The company has securitized $1.4 billion via the Q-Series and issued five of the last 13 deals, making it among the most prolific Q-Series issuers. Merchants Capital was named the #1 Freddie Mac Multifamily Optigo® TAH Lender by volume in 2023. The company previously completed Q-Series transactions that include a $303 million securitization of 11 multifamily housing loans, a $284 million securitization of 16 multifamily loans, a $214 million securitization of 14 multifamily loans and a $262 million securitization of 15 workforce housing properties.   To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, X, LinkedIn and Instagram. To learn more about Freddie Mac Multifamily Q-Deals, please click here.

CARMEL, Ind. (Aug. 15, 2024)—Leading financial services provider Merchants Capital today announced that it secured more than $14.3 million for the development of Union at Purple Heart Trail, a 240-unit affordable housing community in Wichita, Kansas.   Merchants Capital provided a tax-exempt $14.3 million forward committed private placement loan for Union at Purple Heart Trail. It is the first 4% tax-exempt private placement loan closed with Merchants Bank. Developed by leading impact housing developer The Annex Group,® Union at Purple Heart Trail will offer one, two and three-bedroom units across two four-story buildings. The development will sit on ten acres of land and include a community center with a fitness center, media center, business learning center, an outdoor gazebo, playground, bark park, walking path and picnic areas. The Annex Group is also creating a customized Community Impact Plan (CIP) to link residents with local businesses, employers and resources to encourage personal and professional growth. “The Annex Group is thrilled to expand our footprint in Kansas with the addition of Union at Purple Heart Trail, which will bring hundreds of new affordable housing units to Wichita,” said Ryan Clark, Senior Vice President of Development at The Annex Group. “We're excited to offer diverse housing options in an amenity-rich area on the east side of town and contribute to solving the affordable housing shortage with a vibrant new community.” The $61 million community will be located at 300 S. 127th St. E. and 390 S 127th St. E. Construction on the property is underway, with an anticipated opening in early 2026. 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. (Nov. 27, 2023) – Leading financial services provider Merchants Capital today announced it has secured $17.4 million in Low-Income Housing Tax Credit (LIHTC) equity financing for the new construction of Reserve on Park Place, an affordable senior property in Fort Wayne, Indiana. The property will bring 187 age- and income-restricted units to a high-demand area for affordable housing. "This project is emblematic of Merchants’ collaborative, full-service approach and commitment to affordable housing,” said Ben Trussell, Vice President of Acquisitions at Merchants Capital. “We are proud to provide a range of financing sources that support affordable housing development, particularly in closing funding gaps. We deeply value our partnership with Brown Capital Group, Leo Brown Group and Rogers Development Group." Developers Brown Capital Group, Leo Brown Group and Rogers Development Group bring significant multifamily and senior housing experience to Reserve on Park Place. Restricted to seniors aged 55 and older, the three-story low-rise property comprises 15 studio units, 136 one-bedroom units and 36 two-bedroom units limited to residents earning 40%, 60% and 80% of the area median income (AMI). The units are designed to support senior and special needs, with amenities that include handrails, grab bars, intercoms, limited access and video surveillance. “Given the numerous challenges amidst development projects, specifically in the affordable housing sector, Merchants Capital was an anchor in an unpredictable financing environment,” said Jarod Brown, CEO of Brown Capital Group. “We are delighted to bring affordable housing to an area which has such a high concentration of jobs for our future residents.” Reserve on Park Place will sit in a neighborhood among single-family and multi-family homes, with easy access to restaurants, hotels, a grocery store, a pharmacy and local businesses along State Route 1. Construction is expected to be completed in April 2025. To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, X, LinkedIn and Instagram. Reserve on Park Place image courtesy of R3B Architecture.

NEW YORK (Nov. 16, 2023) – The New York office of leading financial services provider Merchants Capital today announces it has provided more than $225 million in financing to support the New York City Housing Authority (NYCHA) Permanent Affordability Commitment Together (PACT) Union Avenue Consolidated project in the Bronx, which involves a massive refinance and rehabilitation of seven properties. The PACT Union Avenue Consolidated project consists of seven affordable housing developments, 18 buildings and a total of 983 apartment units. Merchants Capital’s Freddie Mac Capital Markets Execution (CME) loan will be used to refinance the property and rehabilitate the units with building-wide improvement plans. The scope of work includes kitchen upgrades (counters, appliances, cabinets), plumbing improvements and common area maintenance. Additionally, the financing will provide extensive capital needs and repair costs ranging from heating infrastructure to building security improvements. The upgrades will also include the development and implementation of a social services program tailored to the individual needs of the Union Avenue community. Though all units will be modernized and upgraded, all apartments will maintain permanent affordability and preserve tenants’ rights and protections. Construction began in October 2023 and is expected to be completed by September 2025. To date, Merchants Capital has provided more than $1 billion in financing towards the PACT projects throughout New York City. Most recently, the firm provided $320 million to support comprehensive renovations at Edenwald Houses, the second-largest NYCHA property in the state. “Our continued contribution to the residents of New York City proves that the work to solidify and support affordable housing for all is never done,” said Mat Wambua, Vice Chairman and Executive Vice President, Agency Lending at Merchants Capital. “We once again appreciate the opportunity to collaborate with our public partners on these critical NYCHA PACT deals that are making a true difference in the lives of so many in the Bronx, Brooklyn, and other New York neighborhoods. Finding and securing innovative financing solutions that match the specific needs of our clients is what we do – our New York team’s creativity and expertise in structuring this intricate deal is a huge success.” The Bronx Housing Preservation Experience LLC is a joint venture by project sponsors The Arker Companies, SBV RE Investments LLC (formerly Omni NY) and Dabar Development Partners – all three accomplished leaders in the affordable housing, community development and real estate industries. Those parties, including Merchants Capital, bring extensive real estate experience in working with NYCHA through the collaboration on the NYCHA PACT Brooklyn Bundle II, an earlier project focused on major repairs and renovations for nine Brooklyn developments. Merchants Capital proudly worked alongside prominent affordable developers and industry partners for the Union Avenue Consolidated, including the aforementioned project sponsors, Nuveen, NYCHA, Freddie Mac, New York City Housing Department Corporation (NYCHDC), Sidley Austin LLP, Ballard Spahr LLP and Nixon Peabody. To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, X, LinkedIn and Instagram.