CARMEL, Ind. (June 15, 2020) – Mortgage banking company Merchants Capital has secured $25.9 million in Fannie Mae funding for a 476-unit multifamily affordable housing property in Joliet, Illinois. The Fannie Mae Cash Preservation loan was secured on behalf of the owners of Brinshore Development, The Richman Group and Eric Richelson. Located at 947 Lois Place in Joliet, Illinois, Larkin Village operates under a tax credit program through the Illinois Housing Development Authority (IHDA). The IHDA requires that the property supplies 256 of the 476 units at or below 60% of the area median income (AMI). The other 220 units are unrestricted. “Now more than ever, there is a need across our country for affordable housing properties that are safe, clean and available for our American workers,” said Merchants Capital Senior Vice President Randall Rogers Jr. “Securing the financing for a multifamily, affordable housing property such as Larkin Village supports Merchants Capital’s passion for providing these housing options nationwide.” Merchants Capital was also instrumental in the structuring and underwriting of this transaction, facilitating the communications and documentation that led to the approval of a 10-year interest only period. Merchants Capital, Brinshore Development and The Richman Group were able to execute and close the loan remotely, due to the COVID-19 shelter-in-place order issued days before closing. This transaction allowed the ownership team to retire IHDA debt, make useful repairs to the property, and redeploy the equity accumulated over many years of effective operations. The equity will be used to invest in other affordable housing projects either through new construction developments or renovations. “The payoff of the IHDA loan marks the end of a success story. Larkin Village was one of only two foreclosure of multifamily loans which IHDA ever held. In 1999, IHDA selected the development team to rehabilitate, re-tenant and operate the failed affordable housing project,” said Brinshore Development Principal David Brint. “21 years later, Larkin Village is an important asset to the affordable housing stock in Will County, Illinois.” An Equal Housing Opportunity, Larkin Village offers options for studio, one-, two- and three-bedroom apartments in its family friendly community. The property provides complimentary heat, cooking, gas, water, garbage and private satellite TV for each apartment. Outdoor amenities include a swimming pool, community center, playground and clubhouse, along with numerous green areas and management on the premise. The community also supplies laundry facilities in each building with Cashless Smart Card washers and dryers for convenience. To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, Twitter, Instagram and LinkedIn.

CARMEL, Ind. – Mortgage banking company Merchants Capital today announces that it has provided a three-year bridge loan for Centennial Aspen, a 148-unit workforce housing complex located in Aspen, Colorado. The acquisition of the project is financed through Merchants Bank of Indiana (MBI) on behalf of Birge & Held Asset Management, which currently owns and manages over 11,000 apartment units across the country, with offices in Indianapolis, Ind. and Denver, Colo. Merchants Capital Corp. intends to further provide long-term, permanent financing for the project either through Fannie Mae or Freddie Mac’s preservation platforms or through a syndication of new tax credits via Fannie, Freddie or HUD. Located at the base of Smugger Mountain at 100 Luke Short Ct., Centennial Aspen was built in 1986 and designed by world-renowned architect Moshe Safdie. The property was built with a Land Use Restriction Agreement (LURA) that required 100% of the rental units to be used for workforce housing. In Aspen, Colorado, the average household and median income are both higher than the state of Colorado as a whole. This creates an environment where the cost of living is higher in this area than others in the state, contributing to higher housing costs. Under the LURA, Centennial Aspen’s units are rented to residents with incomes ranging from 50% to 120% of the area’s median income (AMI). Edward Dietrick “Centennial Aspen serves true workforce residents who might otherwise be unable to live in a high-cost city such as Aspen,” said Merchants Capital Vice President Eddie Dietrick. “We’re honored to provide this bridge loan which furthers our mission of providing high quality, affordable housing options across the country in critical job centers.” The 11-building, three-story multifamily property features studio, one, two- and three-bedroom apartments. Apartment amenities include exterior entrances, an exterior storage unit and electric heat, while community amenities include an onsite laundry facility and office, a playground and assigned parking spaces. “Birge & Held is very excited about the acquisition of Centennial Apartments, as it is a perfect match with our workforce housing portfolio in one of the most unique markets in the country,” said Birge & Held President and Co-Owner Andrew Held. “Merchants Capital has been a great partner of ours for decades, and understands the need for supporting affordable housing in markets like Aspen.” The workforce housing option is conveniently located near local grocery stores, pharmacies and ski resort options, and residents can take a 15-minute walk or utilize the free RFTA bus to travel into downtown. To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, Twitter, Instagram and LinkedIn.

CARMEL, Ind.  – Mortgage banking company Merchants Capital has secured $57 million in financing through a HUD 221(d)(4) loan for 4th & Race, a mixed-use multifamily apartment complex coming to downtown Cincinnati in 2021. The 40-year HUD 221(d)(4) new construction loan was secured on behalf of Flaherty & Collins Properties. Currently under development, the 4th & Race project will be a 264-unit market rate multifamily property. The new construction loan represents the multifamily component of a larger development that will also include approximately 20,000 square feet of retail space, in addition to a five-story parking garage that will be available to multifamily residents and the public. The project is scheduled to open in the first half of 2021. The project was designed and is being built to qualify for the National Green Building Standards Certification, which in turn qualifies the mortgage for HUD’s green MIP program.  Standard construction projects built with HUD 221(d)(4) financing require 65 basis points of initial and annual MIP payments.  With green MIP, this project only has to pay 25 basis points in MIP initially and annually, creating 40 basis points in annual savings for the developer. The multifamily complex represents a true public-private partnership, as Flaherty & Collins Properties worked concurrently with the City of Cincinnati, the Port Authority of Greater Cincinnati and the Cincinnati Center City Development Corp (3CDC) to bring this project to life. Edward Dietrick “We are proud to partner with Flaherty & Collins Properties and all other participating parties by providing the construction and permanent financing for this new project,” said Merchants Capital Vice President Eddie Dietrick. “We look forward to opening this multifamily, luxury property for Cincinnati residents in 2021.” The residential portion of the project being financed by Merchants Capital will sit on top of the parking and retail components. The parking and retail structure were under construction during the processing of the HUD closing, and Merchants Capital worked together with Flaherty & Collins Properties to time the closing date so the construction teams could flow seamlessly from the garage construction to the residential construction. “With best in class amenities, panoramic views and a prime location in the heart of downtown Cincinnati, 4th & Race will contribute to the success of downtown Cincinnati and the west 4th Street corridor,” said Flaherty & Collins Properties Principal and Vice President of Development Jim Crossin. “We are thankful to Merchants Capital for its creative thinking and perseverance in delivering the financing to this complex transaction. We are excited to complete this project and welcome residents.” Other amenities of 4th & Race include 8,000 square feet of outdoor space, a 6,000-square-foot indoor amenity area, and a sky deck with views of downtown and the Ohio River. For residents, the outdoor space features, a pool, grilling stations and seating areas, while the indoor amenities include a fitness center, yoga room, gaming area and club room for residents and their guests. To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, Twitter, Instagram and LinkedIn.