We are a national,
full-service tax credit
equity syndicator.

Tax Credit Equity

Merchants Capital is a one-stop shop, for all aspects of affordable housing finance.

We are innovators in the industry. Our team of tax, acquisitions, asset management, and syndication experts offer structured equity investment solutions for the nation’s leading affordable housing developers and investors through proprietary, multi-investor, historic, and state tax credit funds. Co-investments are available from our bank parent-company.

  • Over $1.4B
    Equity Raised Since Inception
    As of 12/31/2023
  • 40+
    Active Investors
  • 100%
    Funds at or Above Proforma Yields

The Merchants Advantage

For Investors

The Merchants Advantage

For Developers

Volunteers working in a community garden

Social Impact

We do well by doing good. Our portfolio is designed to create opportunity, improve neighborhoods, and elevate the communities we serve. Some of our multi-investor and proprietary funds offer optional social-impact reserves, deploying investor capital into services, improvements, or enhancements to benefit tenants.

Recent Transactions

3D rendering of East 7th Street | Image courtesy of Project for Pride in Living and Cuningham Architects
MINNEAPOLIS (May 12, 2025)—Leading financial services provider Merchants Capital today announced $32.9 million in financing for the construction of East 7th Street, a 60-unit affordable and supportive multifamily housing development in St. Paul, Minn. Merchants Capital provided $18.9 million in 9% low-income housing tax credit (LIHTC) equity and secured a $14 million bridge loan from Merchants Bank for the development. East 7th Street includes 17 units designated for individuals earning 30% of area median income (AMI) and 43 units designated for individuals earning up to 60% of AMI. Seven units will be set aside for people with disabilities and seven units will be reserved for high-priority homeless housing via Ramsey County Housing Support Program and Coordinated Entry System. Developed by Project for Pride in Living (PPL), the East 7th Street affordable housing development was designed to accommodate “grandfamilies” with large family-kindship. Families, in particular, will be well served by the accommodating space and long-term affordability available at East 7th Street,” said Marsha Goff, Executive Vice President of Originations at Merchants Capital. “PPL continues to enrich the Twin Cities with programs, services and affordable homes, and we are proud to leverage Merchants’ debt and tax credit equity expertise to serve as a financing partner for this development.” “Merchants Capital is proud to provide nearly $19 million in equity to help PPL’s vision of East 7th Street become a reality,” said Josh Reed, Executive Vice President of LIHTC Acquisitions at Merchants Capital. “This project embodies the mission of PPL and the low-income housing tax credit program by providing quality housing and career readiness services for 60 households in St. Paul.” PPL is a provider of affordable housing and support services designed to revitalize the Twin Cities. PPL owns and manages 1,762 units of affordable housing and operates programs focused on career training and retention, housing stability and income growth. An additional 212 units will be available by the end of the year. “PPL and its partners are bringing a great multigenerational apartment building to the East Side of Saint Paul,” said Karla Henderson, President & Chief Executive Officer at Project for Pride in Living. “The 892 East 7th Street project is an affordable housing development that comes at a time when supply is tight and need is great in the community, mostly for large families with large family kindship.”   East 7th Street will offer one to five-bedroom apartments with washer/dryer, LVT flooring and stainless-steel appliances. Community amenities include a fitness center and wellness room, package lockers, on-site management and maintenance, bike storage, storage units, playground, lounge area, conference room and an elevator. Construction began in December 2024 and is expected to be completed in 12 months. To learn more about Merchants Capital and its services, visit www.MerchantsCapital.com or find Merchants Capital on Facebook, X, LinkedIn and Instagram.
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Merchants Capital Secures $32.9M for 60-Unit Affordable, Supportive Housing Development in St. Paul, Minn.
Press Release image with building in background
CARMEL, Ind. (May 7, 2025)—Leading financial services provider Merchants Capital today announced $56.5 million in debt and tax credit equity financing for the acquisition of Rock Ridge Apartments, a 152-unit multifamily housing development in Woonsocket, R.I. developed by The BLVD Group (BLVD).   Merchants Capital provided $23.8 million in Fannie Mae Immediate Tax-Exempt Bond Collateral (MTEB) permanent financing and $18.7 million in 4% low-income housing tax credit (LIHTC) equity as the syndicator. It also secured a $14 million equity bridge loan from Merchants Bank for the development. “Through the renovation of these 152 affordable homes in Woonsocket, BLVD is committing to the improvement of the community and lives of the residents,” said Matt Kaercher, Senior Vice President of Originations at Merchants Capital. “We are proud to support their dedication to affordable housing development and preservation.” Substantial external and in-unit renovations for Rock Ridge Apartments will be facilitated via tax exempt bonds issued by Rhode Island Housing (RIH) and equity from the sale of 4% LIHTCs and Renewable Energy Tax Credits (RETCs). Replacement of the roof, water heaters and windows are planned, in addition to new appliances, flooring, lighting and painting. The development will also benefit from the Fannie Mae Green Rewards Program. High efficiency electrical and water solutions and a 666-kW solar energy generation system will be installed that will produce the bulk of the building’s power needs. Substantial external and in-unit renovations for Rock Ridge Apartments will be facilitated via tax exempt bonds issued by Rhode Island Housing (RIH) and equity from the sale of 4% LIHTCs and Renewable Energy Tax Credits (RETCs). Replacement of the roof, water heaters and windows are planned, in addition to new appliances, flooring, lighting and painting. The development will also benefit from the Fannie Mae Green Rewards Program. High efficiency‑ electrical and water solutions and a 666-kW solar energy generation system will be installed that will produce the bulk of the building’s power needs. “Tax credit programs at the state and federal level are not just successfully enabling the creation of additional affordable homes nationwide, they are also facilitating energy efficient improvements that lower the cost burden,” said Laurie DiBona, Vice President of Equity Acquisitions at Merchants Capital. “This collaboration with Merchants Capital preserves vital community housing in Woonsocket and advances our mission to deliver sustainable, high-quality homes—complete with energy-efficient design and solar power—for families in need,” said Rob Budman, Managing Principal at BLVD. National multifamily investment and development firm The BLVD Group, which specializes in family and senior restricted properties, owns and operates more than 5,500 units in 17 states and has served more than 13,000 families. Rock Ridge Apartments includes 14 two-story apartment buildings with one to three-bedroom units and a community building, leasing center, business center, playground and basketball court. Upon completion, all units will be available to families earning up to 50% or 60% of the area median income (AMI). Construction began in April 2025 and is 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.
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Merchants Capital Secures $56.5M for 152-Unit Affordable Housing Development in Rhode Island
MINNEAPOLIS (April 14, 2025)—Leading financial services provider Merchants Capital today announced $25.5 million in debt and equity financing for the construction of Prairie Pointe, a 42-unit affordable and supportive housing development in Shakopee, Minn. Merchants Capital provided $14.1 million in 9% Low-Income Housing Tax Credit (LIHTC) equity and secured a $11.4 million bridge loan from Merchants Bank for the construction of Prairie Pointe. Developed by leading Twin Cities-based developer Beacon Interfaith Housing Collaborative (Beacon), Prairie Pointe is the only housing development in the area offering on-site supportive services and rents restricted at 30% Area Median Income (AMI). Twenty-eight units will be permanently set aside for people experiencing homelessness and/or people with disabilities, and 14 affordable units will be restricted at 50% AMI. The permanent supportive housing units will operate under the Minnesota Department of Human Services Housing Support rental subsidy program through Scott County, as well as private subsidy provided by Beacon. Volunteers of America Minnesota and Wisconsin (VOA) will provide on-site supportive services. “It was a privilege to lean into Merchants’ in-house equity expertise and collaborative process to structure this transaction for Prairie Pointe,” said Joseph Krengel, Senior Vice President of Originations at Merchants Capital. “Beacon is making remarkable strides in providing comprehensive affordable housing solutions throughout the Twin Cities, and we look forward to future collaborations.” “Beacon’s multi-faceted approach is extremely successful in helping communities, and we are proud to partner in this effort to bring additional affordable homes to the area,” said Kelly Berg, Vice President of Acquisitions at Merchants Capital. “The deep affordability and supportive services available at Prairie Pointe will provide great relief for tenants, as well as serve the critical need for affordable housing in the larger community.”   Prairie Pointe will include 1-, 2-, 3- and 4-bedroom units with fully equipped kitchens, laminate countertops, vinyl and carpet flooring and laundry rooms on each floor. Community space includes a gym, donations room, computer and study rooms, children’s playroom and playground. Beacon’s service partner will provide onsite case management, housing stability skills, employment assistance, mental health support and educational programming as needed for residents. “We're so proud to be bringing 42 affordable homes to Shakopee to serve families who have experienced housing insecurity. We know that stable homes are the key to helping parents and children flourish, and for communities to thrive,” says Beacon CEO Chris LaTondresse. “And these homes will be made stronger through our partnership with VOA. They have a proven track record of providing high-quality and responsive supportive services to families and individuals to help people meet their goals, achieve housing stability, build their income and access health and community services.” Beacon has provided 950 affordable homes and more than 400 LIHTC units to the Twin Cities. More than 650 of these homes are supportive housing, with on-site supportive services available to residents. Construction for Prairie Pointe began in January 2025 and is expected to be completed by December 2025. To learn more about Merchants Capital and its services, visit www.MerchantsCapital.com or find Merchants Capital on Facebook, X, LinkedIn and Instagram.
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Merchants Capital Secures $25.5 Million for Twin Cities-based Affordable, Supportive Housing Development

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