Merchants Capital Secures Funding for Moving Forward 2.0 Workforce Housing Development in Lafayette, Indiana
CARMEL, IN – Mortgage banking firm Merchants Capital has secured $16 million in construction and permanent financing through a Merchants Bank of Indiana construction loan and a Fannie Mae Mortgage-Backed Security (MBS) as Tax-Exempt Bond (M.TEB) Forward loan. The M.TEB loan, the first ever with Hennepin County Housing and Redevelopment Authority as bond issuer, had the lowest permanent rate to date for the M.TEB program. Fannie Mae’s MBS as M.TEB is considered a “one-size-fits-all” bond solution. By combining the ease of the MBS execution with all the benefits of tax-exempt bonds, borrowers get a lower interest rate and significant savings over the life of the loan. This execution can be used to finance the new construction and rehabilitation of Multifamily Affordable Housing (MAH) properties. Dubbed The Redwell, the affordable mixed-use multifamily development was closed through a partnership with Fannie Mae and Stifel, Nicolaus & Co., Inc. As part of the funding, Merchants Capital also arranged a $1.7 million construction loan with 10-year permanent financing and a $7.9 million Low-Income Housing Tax Credit (LIHTC) Equity Bridge loan for the project on behalf of Schafer Richardson and WNC. The total development cost of the entire project is more than $31 million, with an estimated LIHTC credit equity of $9.1 million and $22.7 million in permanent financing and other funds. “Merchants Capital is thankful to all of the partners involved in this transaction for their efforts in this complex deal,” said Marsha Goff, executive vice president of Merchants Capital. “The unique structure of this loan was an enjoyable challenge for us, and the  ability to close within a tight timeframe to meet bond requirements and also bifurcate the commercial component to meet the LIHTC investor requirements allowed the Schafer Richardson team to break ground on this much-needed affordable housing project.” By leveraging Merchants Capital’s bank, Merchants Bank of Indiana, Merchants Capital was able to structure the funding to provide a small construction loan and accommodate the LIHTC requirements  which allowed the commercial component to remain within the development. Additionally, Tax Increment Financing (TIF) provided by the City of Minneapolis is being monetized to support the proposed permanent loan amount. Hennepin County Housing and Redevelopment Authority acted as the bond issuer. “We are excited to see construction commence after over four years of planning and structuring the deal,” said Amanda Janzen, project manger of Schafer Richardson. “The Redwell was originally planned as an office building, then switched direction to new construction market rate housing, and then affordable housing. The Redwell will be an asset to the neighborhood and provide much-needed affordable housing in the desirable North Loop.” The Redwell is a 109-unit, six-story multifamily complex with commercial space on the first floor. Twenty-six of the units will be studio apartments, along with 68 one-bedroom and 15 two-bedroom units. The Minneapolis Public Housing Authority (MPHA) will provide 22 Section 8 vouchers whereby households would pay 30% of their income toward rent, with the balance paid by federal rental subsidies administered by MPHA.  The remaining units will be priced at 110% fair-market rate at 60% of the area median income (AMI). “We would like to congratulate Schafer Richardson and all the partners who have worked tiressly to add to the North Loop Neighborhood.  WNC is proud to be participating in our second investment with Schafer Richardson in Minneapolis” noted Michael Byrd of WNC & Associates. “These developments are time consuming and difficult to put together. Schafer Richardson did a great job of getting all of the financing and approvals necessary to get the property closed and under construction.” In addition to providing mixed-use, mixed-income and affordable housing in the North Loop District of downtown Minneapolis, the new development is located near mass transit stations and has nearby access to the interstate and intersects several trails and parks along the Mississippi River.
Read More
|
Merchants Capital Secures $16MM for Affordable Housing Property in Minneapolis North Loop District
Merchants Capital Secures Funding for Moving Forward 2.0 Workforce Housing Development in Lafayette, Indiana
CARMEL, IN – Mortgage banking firm Merchants Capital has provided a construction loan and permanent financing for Spur 16, a 156-unit, mixed-use development in Mequon, Wisconsin. As the lender, Executive Vice President Lee Oller and Senior Vice President Susan Schnoll provided the construction and 40-year, fixed-rate, non-recourse loan through the U.S. Department of Housing and Urban Development (HUD)’s 221(d)(4) program on behalf of Shaffer Development. “Spur 16 is particularly special because its financing and development was led entirely by women,” Schnoll said. “With visionary developer Cindy Shaffer at the lead, this female development and lending team was able to bring the project to life, delivering a beautiful and unique project to the market.” Spur 16 combines the construction of new luxury apartments and high-end townhomes with the repurposing of three original public works buildings into vibrant commercial space, including a public market. The development features a clubhouse with a swimming pool, fire pits, event rooms and a workout facility outfitted with Peloton Bikes. Nestled in the heart of Mequon and within the beauty of nature, Spur 16 also features community gardens and a walking path with access to the Ozaukee Interurban Trail. The apartments and townhomes offer concierge service for residents, including car detailing, dog walking, in-unit package delivery and food delivery. The first Leadership in Energy and Environmental Design (LEED)-certified project in Mequon, Spur 16’s deluxe “Smart Units” will allow tenants to control lights, temperature, music and emergency services. “Working with Merchants Capital as the lender on this project has allowed the creation of an exceptional addition to the Mequon area,” said Cindy Shaffer, owner of Shaffer Development. “Shaffer Development isn’t in the real estate business – we’re in the people business. Spur 16 introduces modern, luxurious amenities to greater Milwaukee residents looking to live in an up-and-coming community.” The development’s Mequon Public Market opened in June 2019 and brought some of Milwaukee’s premier restaurants north. Now 100% leased, market vendors include Anodyne Coffee, Purple Door Ice Cream, Beans and Barley, Screaming Tuna, Café Corazon, Bavette, Bowls, Happy Dough Lucky, Santorini Grill and Terrain. The development also houses St. Paul Fish Company, a retail store, an oyster bar and various indoor and outdoor dining. There is also a wellness building housing the Mequon Club Pilates and Yama Yoga True North.
Read More
|
Merchants Capital Secures HUD-Insured Construction Loan for Development in Mequon, Wisconsin