Loan Closings

Photo of Carolyn Mosby Apartments
NEW YORK – The New York office of leading multifamily financial services provider Merchants Capital today announces it has provided more than $13 million in financing to a joint venture between Gorman & Company and the Gary Housing Authority (GHA) for the rehabilitation of the historic Carolyn Mosby Apartments in Gary, Indiana. The financing is integral to preserving the affordability of the project for its residents. Located at 650 Jackson St. just west of downtown Gary, Carolyn Mosby Apartments was built by the GHA in the late 1960s as a public housing development. The eight-story high-rise contains 142 units in a variety of one- and two-bedroom floor plans reserved for senior and/or disabled residents earning 30-60% of the area median income (AMI). The project received an allocation of $13 million of tax-exempt bonds from the Indiana Housing and Community Development Authority, enabling GHA to partner with Gorman to convert it from public housing to a long-term Section 8 Housing Assistance Payments (HAP) Contract as a Section 18 public housing disposition and perform much-needed renovations while continuing to provide rental assistance to its residents. Merchants Capital New York facilitated the bond purchase in the form of a $13 million Merchants Bank of Indiana (MBI) construction loan. Following construction completion, the loan will convert to a $5.239 million permanent loan pursuant to a Freddie Mac Tax-Exempt Loan (TEL) Forward Commitment, to be serviced by Merchants Capital. The project also received equity investments totaling approximately $9.7 million in return for federal Low-Income Housing Tax Credits and federal Historic Rehabilitation Tax Credits. Additionally, the project benefits from a variety of soft financing and other incentives, including a property tax exemption, all integral to maintaining the project’s affordability. The financing will allow Carolyn Mosby Apartments to undergo both interior and exterior improvements, including updates to all electrical and plumbing fixtures to improve the energy efficiency and water usage throughout the property. Common residential areas for residents will be upgraded on each floor as well. Construction completion is expected in 2024.
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Merchants Capital Finances $13MM for Historic Affordable Housing in Gary, Indiana
Apartment Project in Roselle, Illinois
CHICAGO – The Chicago office of Merchants Capital is pleased to announce that it has closed a 221(d)(4) new construction/permanent loan for Metro 19 Apartments in Roselle, Illinois. The U.S. Department of Housing and Urban Development (HUD)-insured loan will provide construction and permanent financing for 295 transit-oriented, multifamily units adjacent to the Roselle Metra commuter rail station situated half a mile east of the Main Street commercial district. Merchants Capital securitized the loan and worked closely with the AFL-CIO Housing Investment Trust (HIT), which purchased the Ginnie Mae-backed security that guarantees the timely payment of principal and interest on the Metro 19 loan. The HIT, a fixed-income, investment grade mutual fund, has a long history of working closely with for-profit and non-profit developers, housing agencies, members of the mortgage banking community, labor unions, HUD, government-sponsored enterprises (GSEs) and others to structure the financing needed for their real estate developments. As a result of the HIT’s involvement, the luxury apartment complex will be 100% union built – a requirement on all construction-related projects financed by the HIT. “We are proud of everything that HIT and Merchants Capital have accomplished together. In addition to providing much-needed housing, Metro 19 is creating well-paying jobs for trained workers, making a difference to the broader economic health of the community,” said Chang Suh, CEO at AFL-CIO HIT. A key feature of this development, and a unique capability of the Merchants organization, was the ability to finance both the apartment building and an adjacent garage. This garage structure will provide 542 parking spaces for Metro 19 tenants and area commuters who use Metra trains to get to their places of employment. The garage component of the development involved multiple parties including a land swap that made it possible to assemble the land needed for the garage structure. Working with the Village of Roselle, Merchants Bank of Indiana (MBI) was able to provide the financing for this land assembly and construction loan. The loan will be repaid from revenues generated by property value appreciation under an existing Tax Increment Financing (TIF) in the East Irving Municipal District. “This project is exciting for our company, as it allowed us at Merchants Capital a unique opportunity to work in tandem with our colleagues at Merchants Bank of Indiana,” said Lee Oller, Executive Vice President and head of Merchants Capital’s Chicago office. “This complex transaction codified a land swap between Metra and the Village of Roselle to accommodate a parking garage for apartment residents and Metra commuters. The new complex will bring much needed residential units to the area, and we are honored to have been a part of the development project.” “Merchants’ unique ability to originate both the HUD-insured loan on the apartment building, and Bank financing on the parking garage, gave us the flexibility to meet the financing requirements of the various stakeholders and help make the overall development possible,” said Emmett Donovan, Senior Vice President at Merchants Capital. “Metro 19 gave us a chance to finance an important property that will bring nearly 300 housing units to the suburbs of Chicago. We look forward to growing our developer partnerships across the Midwest so that we can continue to provide even greater access to housing for residents across the region.” This is the second HUD-insured project Merchants has financed with the developer, Avgeris and Associates. The five-story building is designed around a central courtyard and amenities include a business office, fitness center, golf simulator, dog spa, outdoor pool and enclosed rooftop lounge. The property will also receive a National Green Building Standard (NGBS) certification upon completion of construction. The green certification ensures that the property will operate at peak energy efficiency, reducing utility costs for both the developer and building residents. Construction is underway with leasing anticipated to begin in late 2023. “We couldn’t be more excited about our Metro 19 Apartment development in downtown Roselle. This high-end building in a TOD location will be an excellent addition to the other luxury apartment communities in our portfolio. Our residents love being able to walk or bike to public transportation, restaurants, shops and local nightlife. We are excited to have broken ground on the Metro 19 development. It would not have been possible without the hard work and strong support from the Village of Roselle, HUD, the AFL-CIO HIT, METRA, and of course Merchants Capital and Merchants Bank of Indiana,” said Tim Knudson, Vice President at Avgeris and Associates. ###
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Merchants Capital and Merchants Bank of Indiana Secure Financing for Transit-Oriented Apartment Project in Roselle, Illinois
New York City
NEW YORK – The New York office of leading financial services provider Merchants Capital today announces it has provided more than $104 million in financing for Harlem River Houses and the adjacent Harlem River II Campus, collectively known as Harlem River Houses I and II. The New York City Housing Authority (NYCHA) property dates back to the 1930s and represents a significant milestone in public housing as one of the first two properties in New York funded, developed and owned by the federal government. Constructed in 1936 and debuting in 1937, Harlem River Houses was built as an attempt to amend the poor housing opportunities for African American residents in the Harlem neighborhood. At the time, public housing was segregated in New York City and the limited options available to African Americans were deteriorating and significantly overcrowded. As such, construction of Harlem River Houses served great importance to many local residents by offering affordable and safe housing at a time when other options were scarce. In 1979 after 42 years in service, Harlem River Houses was recognized on the National Register of Historic Places for both its noteworthy architecture and social history in the New York City community. Located between West 151st Street and West 153rd Street along Harlem River Drive and Macombs Place, Harlem River Houses currently features 690 apartments offered at 100% affordability to low-income residents in the area. Upon renovation, the property will offer 693 apartments spread across eight residential buildings that house more than 1,400 residents. Merchants Capital provided more than $104 million on behalf of a joint venture between the Settlement Housing Fund and West Harlem Group Assistance to support comprehensive renovation of the properties. The financing structure consisted of a straight-to-permanent New York City Housing Development Corporation (NYCHDC) Freddie Mac Risk Share loan crafted by the NYCHDC, Freddie Mac and Merchants Capital. To date, Merchants has provided nearly $480 million in financing towards more than 3,300 units as part of the NYCHA PACT projects throughout New York City. As the largest public housing authority in North America, NYCHA is home to 1 in 15 New Yorkers. Rehabilitation to the property is expected to begin this spring, and the renovation is expected to be completed between 2024 and 2025. Renovations will include upgrades to apartments, common areas, elevators, security and heating systems. Upgrades in units will include new kitchens, bathrooms, floors and appliances along with updates to windows and building exteriors. Sidewalks, gardens and sculptures within the property grounds will be restored and new playgrounds, benches and activity spaces will be installed for residents' use. Additionally, all electrical, mechanical and plumbing systems will be renovated or replaced. “We are so excited to get to work on the restoration of Harlem River Houses,” said Alexa Sewell, President of Settlement Housing Fund, Inc. “This investment is a huge win for public housing, for the neighborhood, and most importantly, for the residents of Harlem River Houses. We wouldn’t be here without the creativity and tenacity of the Merchants team.” To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, Twitter and LinkedIn and Instagram.
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Merchants Capital New York Provides $104MM+ for Historic Affordable Property in Harlem, New York
New York Skyline
NEW YORK – The New York office of leading financial services provider Merchants Capital today announces the company provided approximately $1.15 billion in debt financing during 2021 for affordable, multifamily and senior housing preservation and development within the region, earning recognition as a top housing financer in the New York area. The milestone reflects Merchants Capital New York’s continued success and expansion into a diverse base of offerings for clients, including on-book, Freddie Mac, Fannie Mae and Federal Housing Administration (FHA) loan products. Merchants’ lending volume extends to a broad swath of affordable projects, including acquisition, preservation and new construction loans for 4%, 9%, Section 8, public, supportive and mixed-income housing projects. Merchants Capital New York is one of Merchants’ six production hubs nationwide, in addition to Indianapolis, Chicago, Saint Paul, Boston and Washington, D.C., which opened in 2021. To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, Twitter, LinkedIn and Instagram.
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Merchants Capital New York Arranged $1.15BB in Financing for Affordable, Multifamily and Senior Housing Development & Preservation in 2021
Apartment Building
CARMEL, Ind.  – Leading financial services provider Merchants Capital announced today it has arranged $13 million in debt financing and $7.2 million in equity financing to support the renovation and redevelopment of Adcock Joyner Apartments in Oakland, California. The mixed-use property is a historic development, originally constructed in 1915 as a hotel and converted into affordable housing in the early 1990s. Situated at 532 16th St. in the heart of downtown Oakland, Adcock Joyner provides housing for residents earning no greater than 50% or 60% of the area median income (AMI). The property features 25 studio and 25 one-bedroom apartments with excellent walkability to Oakland’s public transportation and major thoroughfares. The first floor of the mixed-used development features more than 2,500 square feet of commercial space occupied by a local nonprofit that helps homeless, poor and disabled individuals achieve health and self-sufficiency. To finance the renovation, Merchants Capital provided more than $20 million in total debt and equity financing, which will fully fund the project through the 4% Low-Income Housing Tax Credit (LIHTC) program. Following completion of the renovation, the property will operate under a new Housing Assistance Payments (HAP) contract covering 100% of the revenue-generating units, ensuring the property will remain affordable for residents in the years to come. “Right now, the need for quality, affordable housing is exponential in the U.S. but especially in the state of California,” said Eddie Dietrick, Vice President at Merchants Capital. “With our full-service lending platform, we are able to better serve the needs of our clients and support their work in revitalizing affordable housing properties across the country. We are grateful to have partnered on this project and look forward to expanding Merchants’ presence along the West Coast.” “The California housing market is truly unlike any other in the country, and we are thrilled to showcase Merchants’ commitment to the area by serving as the financier for this important redevelopment project,” said Linda Hill, Executive Vice President of Tax Credit Equity at Merchants Capital. “We are working to expand our presence nationally and having the opportunity to partner on such a significant California property is a step in the right direction for our company.” Significant renovations will be made in each residential unit, including upgrades to all kitchen surfaces and appliances, all bathroom surfaces and fixtures, plumbing, flooring, electrical updates and more. Exterior renovations include repairs to the building’s fire escape, new roofing, new HVAC units, elevator upgrades, enhanced security systems and more. The first-floor commercial space will be reconfigured and renovated, with new kitchen cabinets, fixtures and flooring among others. “We are excited about the project and our partnership with Merchants Capital and Progressive Affordable Development,” said James Hill, President of Adcock Joyner Preservation. “This renovation helps us continue our long-term objective of providing stable affordable housing in the downtown Oakland sector. We value our relationship with Merchants Capital and are most grateful for the expertise and support provided while we bring our vision into reality.” Renovation to the property began in November 2021 and is expected to be completed by January 2023. To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, Twitter, LinkedIn and Instagram.
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Merchants Capital Arranges $20MM+ in Total Financing for Historic Affordable Development in Oakland, California
Apartment Building
CHICAGO – The Chicago office of leading financial services provider Merchants Capital recently secured more than $110 million in total financing for Parkside 8 and Parkside 10, two mixed-use, workforce housing developments located in Ward 7 in Washington, D.C. Upon completion, Parkside 8 and 10 will feature 230 total residential units and approximately 14,000 square feet of commercial retail space. The projects are being co-developed by City Interests Development Partners and Ravinia Capital Group and they closed on the joint venture (JV) equity with the Opportunity Zone strategy managed by Bridge Investment Group. The projects will address the need for workforce housing in an expensive market, offering rental housing for low- and moderate-income households. Parkside 8 and 10 are part of a larger, 3.1-million-square-foot and master-planned development known as Parkside. The aggregate Parkside mixed-use development will include between 1,500 and 2,000 residential units, up to 50,000 square feet of retail space, 860,000 square feet of office space, a one-acre park and a new pedestrian bridge that crosses over Kenilworth Avenue and I-295 linking the Eastland Gardens, Kenilworth and Parkside neighborhoods with the Minnesota Avenue Metrorail Station. Additionally, Parkside offers four neighborhood educational institutions and a primary care clinic that serves both the developments’ residents and adjacent neighborhoods. “Workforce housing is such an important component of a city’s housing plan as it supports employment populations that are critical in making the city operate. We need teachers, fire fighters, members of the police force and government employees living and working in our communities," said Peter J. Farrell, Managing Partner at City Interests Development Partners, LLC. "Adding Parkside 8 and 10 to our mixed income housing footprint is another step in the evolution of Parkside as a live, work, play mixed-use development. Thank you to the Merchant Capital team for a job well done.” “We are delighted with our ongoing partnership with City Interests in providing workforce housing at Parkside," said Jim Solomon, Managing Principal of Ravinia Capital Group. "Parkside 8 and 10 is part of Ravinia’s ongoing commitment to the Parkside community as well as the city of Washington, DC. We feel that it is critically important to provide housing that’s so much in demand. Thank you, Merchants Capital, for being part of our team.” Parkside 8 and 10 will create workforce housing without the need for federal tax credit subsidies typically required for affordable developments. Within the new properties, select units will be reserved for residents earning between 80% and 120% of area median income (AMI). The new developments are located within the Mayfair/Parkside Opportunity Zone which has seen significant investment through the opportunity zone structure. To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, Twitter, LinkedIn and Instagram. To finance the properties, Merchants Capital secured $56 million of construction loans provided by Merchants Bank of Indiana and $59 million in permanent financing through Freddie Mac Non-Low-Income Housing Tax Credit (LIHTC) Forward Commitments and Freddie Mac Permanent Loans.
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Merchants Capital Secures More Than $110MM+ in Total Financing for Two Mixed-Use, Workforce Housing Developments in Washington, D.C.
Mixed-Use Development in Washington, D.C.
SAINT PAUL, Minn. – Leading financial services provider Merchants Capital recently secured more than $141 million in financing for Waterfront Station II, a multifamily, mixed-income and mixed-use property currently under construction in the Southwest neighborhood of Washington, D.C. The community is a joint venture between the for-profit Hoffman & Associates, not-for-profit affordable developer AHC Inc., City Partners and Paramount Development. Situated at 1000 4th Street SW, Waterfront Station II will bring 449 units of market-rate and affordable apartments to the area. Within the 449 total units, 313 will be available at market-rate and 136 will be affordable. Sixty-eight units will be available to households earning at 30% of the area median income (AMI) and an additional 68 will be available for households earning at 50% AMI. Made possible through an innovative financing model, the affordable housing units were financed using both 4% and 9% Low-Income Housing Tax Credits (LIHTC). Ninety-four of the total affordable units are attributed to the 4% LIHTC while 42 of the total affordable units are attributed to the 9% LIHTC. Land acquisition occurred in 2020, at which time the Waterfront Station II development team executed a 99-year ground lease with the District’s Office of the Deputy Mayor for Planning and Economic Development (DMPED). Merchants Capital financed the property with three Merchants Bank of Indiana (MBI) construction loans, totaling $141.25 million: a $123.5 million loan, a $2 million loan for the construction of the 9% LIHTC units and a $15.4 million 4% LIHTC loan required for the tax-exempt bond financing. In addition, Merchants provided financing for three separate Fannie Mae 42-month forward commitments for the permanent financing. Each forward commitment had different loan terms to meet the requirements of the market rate, the 9% LIHTC and the 4% LIHTC units, as well as the goals of the borrowers and equity investors. The full development will consist of a single, 12-story apartment building with approximately 29,000 square feet of retail, educational and commercial space on the ground level with below-grade parking. The commercial space is anchored by AppleTree Public Charter School, a DC-based early childhood education provider and a neighborhood restaurant by Good Company Doughnuts, with an additional 7,000 square feet of retail space available for lease. Designed by architect Torti Gallas Urban with interiors by interior designer Hickok Cole, the project will include more than 19,000 square feet of outdoor and interior amenity space across four floors of the building. These amenities include a coworking and communal gathering space, an expansive fitness center as well as both entertainment and hospitality lounges with dedicated meeting spaces and an intimate library. Beyond the indoor amenity spaces, Waterfront Station II will feature a second-floor courtyard, a rooftop terrace and pool, all of which will be enhanced by the work of landscape architect, Michael Vergason. Unique to Waterfront Station II is the number of private balconies and terraces that create the building façade’s signature design. In total, 147 balconies and terraces averaging 150-200 square feet give residents sweeping views of the Washington Monument, the Capitol Building and both the Potomac and Anacostia Rivers. Designed as a LEED Gold project, another exterior feature of Waterfront Station II is the inclusion of solar panels. Installed across the roof of the building, this added sustainability measure will improve the site’s overall energy efficiency. Anticipated delivery for Waterfront Station II is winter 2023. To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, Twitter, LinkedIn and Instagram.
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Merchants Capital Secures $141MM+ for Mixed-Income, Mixed-Use Development in Washington, D.C.
Senior Community in San Antonio, Texas
CHICAGO – Financial services company Merchants Capital (MCC) today announces the closing of $102 million in combined debt and equity financing to support the redevelopment of Granada Homes, a historic affordable housing property located along the iconic River Walk in the heart of downtown San Antonio. Originally constructed in 1927 as the Plaza Hotel, the property currently is a mixed-use, 14-story high-rise housing underserved low- and very-low-income seniors. The financing for the project includes a $43 million Merchants Bank of Indiana (MBI) construction loan and $35 million in Merchants Capital syndicated tax credit equity. Merchants Capital also secured a forward commitment for $24 million from Fannie Mae for permanent financing with the mortgage-backed security being purchased by the AFL-CIO Housing Investment Trust (HIT). The innovative financing included one of the first executions of a new financial structure created by the HIT called a “Build to Bond,” which ensures that the project will be constructed with 100% union labor. Lee Oller “Completing this transaction in a record 60 days required the focus and attention of multiple disciplines across the Merchants product platform,” said Lee Oller, Executive Vice President of Merchants Capital’s Chicago office. “We are incredibly thankful to our developer and our long-term partnership with the AFL-CIO Housing Investment Trust, which brought the project to fruition.” Many observers feared that the building would be sold and converted into a high-end hotel or market-rate condos, displacing its elderly low-income renters. “Through this transaction, the San Antonio Building & Construction Trades Council will be able to keep the property, fully renovate it, create good union construction jobs with good pay, and make this historic building available as affordable housing for seniors for years to come,” said Chang Suh, the HIT’s CEO. “Together this allows the owners to provide strong benefits that stay in the community.” Julie Sharp "The Merchants Capital equity team was proud to provide $35 million in federal historic, state historic and federal low-income housing tax credit equity financing to revitalize this community, in a first-of-its-kind financing structure in partnership with the AFL-CIO Housing Investment Trust,” said Julie Sharp, Senior Vice President of Tax Credit Equity at Merchants Capital. “Our nimble financing structure allowed the project to close in record time, and further solidified Merchants as a single-point of execution for all aspects of debt and equity financing for affordable housing projects across the United States.” Granada Homes is comprised of 265 studio and one-bedroom units set aside for low-income elderly households. The detailed renovation plan includes upgrades to the finishes and offerings of all units, designed to specifically meet the needs of seniors. The redevelopment will also expand the affordable housing stock through the conversion of the currently under-utilized commercial space to additional affordable units. The loan will result in material improvements to the major building system and significant savings in operating costs. Community and amenity spaces will be upgraded and modernized. Financing for the property also includes a mark-up-to-market of the Section 8 Housing contract, an 8(bb) transfer of a Housing Assistance Payments (HAP) Contract and the issuance of enhanced vouchers, as well as a 100% ad-valorem tax exemption. “We are excited for the partnership with Merchants and the AFL-CIO Housing Investment Trust and look forward to enhancing and expanding affordable housing and good union jobs in San Antonio alongside our partner, San Antonio Building & Construction Trades Council,” said Victor Atkins and Pat Biernacki, the Principals of Canopy, the developer working in partnership with the local labor organization. “The Granada transaction required tremendous creativity within a tight closing time. We feel very fortunate to have found a partner in Merchants that brought the level of talent, commitment and resources to the table necessary to not only ensure transaction closing, but also the continuation of a five-decade legacy of quality, affordable senior living at Granada Homes.” Granada Trade Council Housing Inc. is a 501(c)(4) non-profit with the mission of providing rental housing to low-income elderly persons, directed by the San Antonio Building & Construction Trades Council. To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, Twitter and LinkedIn and Instagram. ###
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Merchants Capital Secures $102MM+ in Debt and Equity Financing to Rehabilitate Historic Affordable Senior Community in San Antonio, Texas
Merchants Capital
CARMEL, Ind. – Financial services company Merchants Capital today announces it has secured $71 million in total financing for the Wildhorse Development, a market-rate, mixed-use luxury apartment and service retail complex located in Chesterfield, Missouri. The Wildhorse Development features 188 luxury units, a 15,000-square-foot Ruth’s Chris Steakhouse with a rooftop bar and 10,000 square feet of service retail. It is conveniently located 25 minutes outside of downtown St. Louis, a region known as an academic and corporate center for the biomedical sciences and home to some of the country’s largest privately held corporations. Great Lakes Capital finished construction on the asset in April 2021 and has leased to 100% occupancy in less than seven months. With the proceeds from the Merchants Bank of Indiana facilities, Great Lakes Capital paid off its existing construction loan, bought out Limited Partners from the original development and secured additional interest only for the property prior to the permanent financing takeout. “Great Lakes Capital presented us with this tremendous opportunity, and we were committed to structuring the financing to best fit their needs,” said Brian Shelbourne, Vice President of Originations at Merchants Capital. “With our team’s decades-long experience working exclusively on multifamily housing, we pride ourselves on our ability to provide customized financing solutions to meet the requirements of each unique transaction.” Great Lakes Capital, a real estate private equity firm, served as the sponsor of the project. “The Wildhorse Development is a signature, long-term asset for our team,” said Ryan Rans, Managing Partner of Great Lakes Capital. “It has been incredibly successful immediately out of the gate, and we’ve been thrilled to partner with Merchants Capital on the refinance. We look forward to working with them again on future deals, as we’ve always found them to be a creative, nimble and astute partner.” To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, Twitter, LinkedIn and Instagram.
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Merchants Capital Secures $71MM+ in Total Financing for Upscale, Mixed-Use Complex in Missouri
Affordable Housing Communities
CARMEL, Ind. – Financial services company Merchants Capital announces today it has provided $18.2 million in total refinancing for Eden Housing, a nonprofit that has partnered with local communities to develop or acquire more than 10,600 homes in communities throughout California. The proceeds will be used to rehabilitate two affordable housing communities in the state: Emerson Arms and Arroyo Vista. Located in the San Francisco-Oakland-Berkeley area, Emerson Arms is a 32-unit affordable apartment community with four one-bedroom units and 28 two-bedroom units within three residential buildings. All 32 units are covered by a long-term Option 5 HUD project-based Section 8 contract. The property was constructed in 1973 and last renovated in 2003. Rehabilitation plans include replacing the exterior podium and walkways that service each unit, new railings and exterior stairs, garage ceiling replacement/ventilation, traffic coating on walkways, roof and gutters replacement, window and sliding door replacement, building exterior painting and ADA compliant walkways. Secondly, Arroyo Vista is a 156-unit affordable apartment community located in Mission Viejo, Orange County, California, approximately 70 miles north of San Diego and 50 miles southeast of the Los Angeles central business district – an area in need of affordable housing. Constructed in 1995, the apartments have 36 one-bedroom units, 72 two-bedroom units, 40 three-bedroom units and eight four-bedroom units within nine two- and three-story residential buildings. All units are encumbered by a combination of rent and income restrictions ranging from 35% to 60% Area Median Income (AMI) through various regulatory agreements. Current resident amenities include on-site management, clubhouse, fitness center, playground, sports court, common laundry, pool and a spa. Rehabilitation plans include major plumbing upgrades throughout the entire property to address slab leaks, exterior stairs and railings, window replacement, carport and trash enclosure repairs, playground, in-unit HVAC, upgraded appliances and countertops and cabinets replacement. “It’s just as vital to preserve and recapitalize affordable housing as it is to produce it,” said Dwayne George, Executive Vice President, Head of Production at Merchants Capital. “With constraints on Private Activity Bond Volume Cap in state of California, Merchants is optimistic that partnering with key organizations such as Eden Housing to pilot creative debt solutions will complement California Housing Finance Agency (CalHFA) efforts to address the affordable housing crisis in the state of California.” Eden Housing currently serves a diverse population of 22,000 low-income residents from all cultures and backgrounds. The company services very low-, low- and moderate-income families, seniors, veterans, people living with physical, mental or development disabilities and the formerly homeless. “As we continue to face unprecedented times – where our portfolios are aging but we lack the variety of feasible financing solutions to address the physical needs – it is critical to have organizations like Merchants Capital that aim to step in and help affordable housing operators explore various solutions to meet our needs,” said Darnell Williams, Eden Housing Senior Director at Asset Management. “Like many affordable housing providers, we are feeling the implications of bond financing constraints. These two properties – although very different financial profiles – were each in need of a seven-figure capital infusion to buy us time before the next tax credit syndication is available. Dwayne and I began strategizing on possible loan products to address our needs and with his background in GSE financing, he was able to help us consider options that best suited each property. It has been a joy to work with him and his team on these deals.” To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, Twitter, LinkedIn and Instagram.
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Merchants Capital Secures $18.2MM for Eden Housing to Rehab Two California Affordable Housing Communities

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