Loan Closings

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. Founded in 1972, Dominium builds and manages high-quality affordable homes. 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. (July 16, 2024)—Leading financial services provider Merchants Capital today announced that it secured $17.1 million in financing for The Marvetta & Anthony Grimes Family Center, a 36-unit Indianapolis-based supportive housing development for households recovering from addiction. Merchants Capital provided $9.5 million in low-income housing tax credit equity (LIHTC) financing, and Merchants Bank provided a $7.6 million equity bridge loan. Financing from The Indiana Housing & Community Development Authority (IHCDA) included a $750,000 Development Fund Loan in addition to 9% low-income housing tax credits as part of the Emerging Developer 2023 Rental Housing Tax Credit (RHTC) General Set-Aside. Additional partners include First Merchants Bank and The National Bank of Indianapolis. 2 Thirty-Eight Properties, LLC (2 Thirty-Eight) developed Marvetta & Anthony Grimes Family Center in collaboration with Seeds of Hope to accommodate a shortage of recovery centers in the area. RealAmerica Companies is the development consultant and general contractor; RealAmerica Management will serve as the property management company. Volunteers of America Ohio and Indiana and Seeds of Hope will provide on-site services and support for families in recovery, and St. Mary’s Early Childhood Center will provide daycare services. The development comprises two two-story garden-style buildings that house 24 two-bedroom units, 12 three-bedroom units and an on-site daycare center, medical offices and community and supportive services. Tenants will be referred by the Father Glen O’Connor Home, a Seeds of Hope-owned property, and a referral network that includes Indianapolis-area organizations: Heart Rock Recovery House, Wheeler Mission Center for Women & Children, The Salvation Army Women & Children, Dove Recovery House and Firefly Children and Family Alliance. “I'm thrilled to be a part of a housing development that's changing the lives of current and future generations,” said Frederick Yeakey, Principal & Founder of 2 Thirty-Eight Properties. “With this being my first development, it was important to address a need that can impact housing and other factors that can greatly affect the cycle of poverty. My development team was incredible, and our partners on this project will provide the expertise and council needed for years to come.” The Marvetta & Anthony Grimes Family Center will be located in West Indianapolis, 0.7 miles east of Interstate 465, in close proximity to an IndyGo bus stop, restaurants, grocery and various retail outlets. Construction began in May 2024 and is scheduled for completion in July 2025. 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. (June 10, 2023) – Leading financial services provider Merchants Capital today announced that it has secured more than $81 million in total financing on behalf of Magnus Capital Partners (Magnus) for HōM Flats at 24 East, a mixed-use, mixed-income ground-up development in Holland, Mich. HōM Flats is a best-in-class workforce housing platform that prioritizes affordability, quality and community engagement. HōM Flats at 24 East is financed through private and public funding sources, including a 4% low-income housing tax credit (LIHTC) allocation from Michigan State Housing Development Authority (MSHDA). Merchants Capital provided $14.2 million in LIHTC equity, a $27.9 million Freddie Mac unfunded forward tax-exempt loan (TEL) and Merchants Bank provided a $31 million construction loan and $8 million equity bridge loan. “This was a team effort across the board—with all of the stakeholders aligned, we executed efficiently,” said Joseph Krengel, Senior Vice President of Originations at Merchants Capital. “Merchants is proud of our partnership with Magnus Capital Partners and collaboration throughout this innovative transaction. We look forward to witnessing the impact of HōM Flats at 24 East’s workforce housing solutions in the area.”  The project will feature 202 residential units, more than 13,000 square feet of new retail space and amenities common in Class A luxury properties, including kitchen islands, full-size washer and dryer, secured key fob access and open floor plans. Magnus has already identified a locally owned childcare provider for 8,800 square feet and will share details as construction progresses. Magnus also created the Preferred Employer and PASS partnership programs to connect local employees with quality housing options and promote patronage of local businesses. “HōM Flats at 24 East brings the best of rental housing, childcare and locally owned businesses to a rapidly growing economic corridor,” said Magnus Capital Partners CEO and Founder Vishal Arora. “We are delighted to see this project move forward.” “We are proud to partner with Magnus Capital Partners and MSHDA to provide $14.2 million in LIHTC equity—and bring 202 units of affordable housing to the community of Holland, Michigan,” said Josh Reed, Executive Vice President of LIHTC Acquisitions at Merchants Capital. The project comprises 64 one-bedroom units, 108 two-bedroom units and 30 three-bedroom units. It is being designed and constructed according to the National Green Building Standard Silver Certification. The property will feature common resident spaces, including a pickleball court, fitness studio, co-working lounge, cafe, indoor and outdoor children’s play areas, secure package delivery area, pet washing stations, indoor bike storage, rooftop terraces and walking paths. HōM Flats at 24 East will be located at 717 East 24th Street, adjacent to a Macatawa Express bus stop and near US-31 and 196 highways, both major transit corridors in West Michigan. Community resources include three grocers, a pharmacy, a medical provider, Van Raalte Farm Park, Holland Heights Park, Morningside Park, Lake Michigan beaches, public schools and higher education facilities, including Holland Early College, GRCC Lakeshore Campus and Hope College.  Construction on HōM Flats at 24 East began in April 2024, with an expected completion within 20 months. Magnus hosted a groundbreaking event on June 6. 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 28, 2023) — Leading multifamily financing provider Merchants Capital today announces it has secured financing for the development of The Farm, a class A, market-rate property located in Zionsville, Indiana. With 400 total units, the project will be the only one of its kind in the area. Situated at the intersection of Michigan Road and Sycamore Street on more than 48 acres of land, The Farm will bring 400 units to Zionsville with an additional 225,000 sq. ft. of retail and commercial space. The development’s prime location will give residents direct access to the city’s major interstates, allowing convenience to downtown Indianapolis and its surrounding suburbs. Property amenities will include a modern and professional fitness center, co-working spaces, golf simulator, gourmet coffee bar, pickleball court, pavilion with fire pit, upscale dog park, rooftop patio and more. Residents will have access to garage spaces as well as covered bicycle parking. To finance development of The Farm, Merchants Capital secured a Merchants Bank of Indiana (MBI) construction loan for the key developer, Scannell Properties, and co-developer Pittman Investors. Headquartered just east of Zionsville in Carmel, Merchants Capital is a national leader in multifamily financing, with expertise in deal structures supporting multifamily, market-rate and affordable housing properties. Merchants served as a financing partner on The Farm alongside other local parties including Lake City Bank and the National Bank of Indianapolis. “Our roots as a company are in Indianapolis and its surrounding suburbs, and we consistently make it our priority to partner on projects that will benefit our local communities and its residents,” said Anthony Cossell, Transaction Manager at Merchants Capital. “The Farm’s design is authentic to the history of Zionsville and blends premier quality with scale in order to be the perfect addition to the town, an area historically scarce in rental properties.” Construction of The Farm will serve as Phase 1 of the larger Planned Urban Development (PUD) project outlined by the Town of Zionsville. Coined the “Gateway District,” the concept is to improve walkability and accessibility for locals by joining residential living with retail shops, convenience stores, dining and more. Phase 2 of the project will focus on the commercial aspect. “We are thrilled to launch development of The Farm at Zionsville and thank our lender partners at Merchants Bank of Indiana and Merchants Capital for their assistance in getting us to the launching pad. We look forward to working closely with the town and our business partners to ensure The Farm will be a welcoming focal point for living, working, shopping and dining,” said Shawn Hitchcock, Director, Scannell Properties. Debut of The Farm in early 2025 will bring much-anticipated multifamily units to Zionsville, currently a heavily undersupplied rental housing market. Upon its completion, the property will be a state-of-the-art project that will provide the best-in-market rental housing to individuals and families in the region. Pre-leasing is expected to commence in May 2023. To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, Twitter, LinkedIn and Instagram.

Developments to provide more than 650 affordably priced units for NYC residents CARMEL, IN (Mar. 29, 2019) – Mortgage banking firm Merchants Capital has secured financing for two affordable housing developments, totaling more than $180.6 million, in the New York City area: MEC 125th Street and Caton Flats. Both transactions executed a novel risk-share structure between Merchants Capital, Freddie Mac and New York City Housing Development Corporation (NYCHDC) as the local housing finance agency. These risk-share loans are structured as permanent forward commitments to take out the new construction loans. “The creativity of these two transactions is unparalleled. We are incredibly thankful to our partners at Freddie Mac and NYCHDC for their inventiveness, as well as to our clients for their commitment to ensuring the development of truly transformative projects,” said Mathew Wambua, executive vice president at Merchants Capital. “These projects are a testament to our continued mission to provide quality affordable housing to workforce and low-income families.” Located in East Harlem, MEC 125th Street is a 19-story, 404-unit mixed-use, mixed-income complex that will bring much needed affordable and market-rate units to this revitalized neighborhood. In coordination with NYCHDC, New York City Housing Preservation and Development (NYCHPD), New York City Economic Development Corporation (NYC EDC), Freddie Mac, Citi Community Capital, Blank Rome LLP and Sidley Austin LLP, MEC 125th Street is key in providing greater affordability to residents in Manhattan. The development was financed through a $120 million, 35-year Freddie Mac Forward Commitment loan secured by Merchants Capital on behalf of The Richman Group Development Corporation. “We are excited to be partners in what will be a remarkable addition to thriving East Harlem and to be part of the community,” said Kristin Miller, president of The Richman Group Development Corporation. “This is the culmination of the efforts of many talented people and organizations, as well as over 10 years of hard work and perseverance. It will be amazing to see this project come to fruition.” Fifty percent of the project’s apartments will be offered at rents ranging from 37 percent of the area’s annual median income (AMI) to 80 percent AMI. An additional 23 percent of units will have rents ranging from 130 percent AMI to 145 percent AMI, and the remaining 27 percent will be market rate. The development site is conveniently located one block from the 125th Street Subway and two blocks from Harlem 125th Metro North Station, providing easy access throughout the city and the greater New York Area. The second development, Caton Flats, is the much-anticipated revitalization of the Flatbush Caton Market (FCM), a destination of Caribbean commerce, entertainment and culture in New York City. The approximately 280,000-square-foot, 255-unit project is being developed by BRP Development, Urbane Development and the Caribbean American Chamber of Commerce and Industry (CACCI) in coordination with the NYCHDC, the NYCHPD, NYC EDC, Freddie Mac, Citi Community Capital, Blank Rome LLP and Sidley Austin LLP. Loan proceeds will fund the development of mixed-income housing, ground floor retail, space for community groups, a business incubator, and a new home for the Flatbush Caton Market. Merchants Capital secured the loan through the new Freddie Mac Non-LIHTC Forward Commitment on behalf of BRP Development Corporation. Non-LIHTC forwards are unfunded, forward commitments for affordable housing developed by nonprofits and subsidized, rent-restricted affordable housing that for-profit developers can use for their new multifamily construction or substantial rehabilitation projects. “The financing secures the future of Caton Flats as an incredible source of affordable housing and economic opportunity for community residents and entrepreneurs,” said Andy Cohen, director of development for BRP Companies. “In addition to providing the neighborhood with much-needed housing, Caton Flats will also serve as a center of commerce, entrepreneurship and culture for Flatbush and the surrounding community.” Ten percent of the Caton Flats apartments will be priced affordably at 37 percent AMI. Fifteen percent of the units will be set at 57 percent AMI, and another 25 percent set at 90 percent AMI. The other half of the Caton Flats apartments will have rents capped at 130 percent AMI.