Merchants Capital Secures Funding for Moving Forward 2.0 Workforce Housing Development in Lafayette, Indiana
NEW YORK (Jan. 29, 2020) – Mortgage banking company Merchants Capital has secured $40.9 million in refinancing for The Tapestry, a 12-story gateway residential building in the heart of Harlem, Manhattan, New York City. The financing has two components: a $35.4 million Freddie Mac Credit Enhancement and a $5.5 million cash loan. Both the fixed-rate credit enhancement and supplemental aspect were secured on behalf of Jonathan Rose Companies and Lettire Construction Corporation. The Tapestry was originally financed in 2008 through a combination of Freddie Mac credit-enhanced, variable-rate and tax-exempt private activity bonds, Low Income Housing Tax Credits, and additional subsidized mortgage financing through the New York City Housing Development Corporation (HDC) and the New York City Department of Housing Preservation and Development. This transaction effectively changes the mode of the underlying HDC variable-rate bonds to fixed-rate bonds. Additionally, a cash tail component was incorporated to provide proceeds to pay swap breakage fees and cover associated transaction costs. By doing so, the borrower will replace the costly in-place loan with a much more favorably priced structure. “This deal’s successful execution represents opportunities on multiple fronts for Merchants Capital, Jonathan Rose, Freddie Mac and HDC,” said Merchants Capital Vice Chairman Mathew Wambua. “Jonathan Rose is one of New York City’s premier and most prolific affordable mixed-income developers, and we are proud to have assisted them in executing this complex yet sound affordable multifamily transaction,” said Merchants Capital Vice President Michael Milazzo. Located at 245 E. 124th St. at the foot of the Robert F. Kennedy Bridge, The Tapestry is part of the 125th Street Corridor Rezoning, a multi-agency effort to infuse the area with cultural, retail, entertainment and residential uses. The 185-unit, mixed-income rental building sets 50% of the apartments aside for market-rate tenants; 30% of the apartments for middle-Income tenants with rents set at 130% of the area median income (AMI); and 20% of the apartments for low-income tenants with rents set at 40% and 50% of AMI. Additionally, The Tapestry features about 7,000 feet of ground-floor retail space, consisting of five commercial spaces. “Jonathan Rose Companies is proud to partner with Merchants on this customized financing solution,” said Nicholas Maloney, Associate Director of Jonathan Rose Companies. “Their decades of multifamily industry experience and housing industry knowledge were clear from inquiry to closing, and we are excited to continue our work in revitalizing the 125th Street Corridor and providing transient oriented, environmentally friendly housing.” To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, Twitter and LinkedIn.
Read More
|
Merchants Capital Arranges $40MM+ Refinance for ‘The Tapestry’ Affordable Housing in East Harlem
Merchants Capital Secures Funding for Moving Forward 2.0 Workforce Housing Development in Lafayette, Indiana
CARMEL, Ind. (Jan. 20, 2020) – Mortgage banking company Merchants Capital has secured $59 million in financing for Bottleworks District, a mixed-use project coming to Indianapolis’ North Mass Ave. corridor in September 2020. The fully funded, three-year Merchants Bank of Indiana New Construction Loan was secured on behalf of Hendricks Commercial Properties. As the Bottleworks development reimagines the Coca-Cola bottling plant, part of the financing involves Indiana Industrial Recovery Tax Credits. Known as the DINO tax credit, these credits provide an incentive for companies to invest in former industrial facilities requiring significant rehabilitation or remodeling expenses. Matthew Kaercher “This transaction is a bit outside our box, and it’s very impressive that our team – including Kate Belser, Ryan Thompson and Daniel Dixon – were able to identify risks, mitigants, structure tweaks and more to ultimately help us execute this financing,” said Matt Kaercher, Merchants Capital senior vice president and leading originator on the deal. “Bottleworks is a banner project for the city of Indianapolis and one Merchants Capital can say it had a hand in forever.” Bottleworks will serve as a culinary, arts, and entertainment hub, featuring the city’s first food hall, a boutique hotel, unique residential options, as well as 180,000 square feet of flexible office space and 175,000 square feet of prime retail space. “Hendricks is proud to partner with Merchants to bring Bottleworks District – a fusion of past and present in the heart of historic neighborhoods – to Indianapolis,” said Mark Koziol, chief financial officer at Hendricks Commercial Properties. “Our $300 million, 12-acre urban mixed-use development is the largest private development of its kind in Indiana, and we can’t wait to see it come to life in fall 2020.” To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, Twitter and LinkedIn.
Read More
|
Merchants Capital Arranges $59MM Financing for Bottleworks District