Trailside Flats in West Lafayette, Indiana
CARMEL, Ind. – Mortgage banking company Merchants Capital has secured financing in excess of $17 million for Trailside Flats in West Lafayette, Indiana, on behalf of Van Rooy Properties, Inc. The 35-year, non-recourse Federal Housing Administration (FHA)/Housing and Urban Development (HUD) 223(f) loan facilitated the refinancing of Trailside Flats, which is existing multifamily rental housing. Located at 2101 Country Squire Court, the apartments are a multifamily development of 195 units comprised of newly renovated buildings as well as newly constructed buildings. In 2017, the project started with a Merchants Bank of Indiana acquisition rehab loan of an existing multifamily property that the client, Van Rooy, acquired with additional vacant land. When the rehabilitated project came to market, Merchants closed new construction financing for additional units on the subdivided vacant ground. Then, as a final step, using a three-year rule waiver from HUD, Trailside Flats’ ownership was modified into a single asset entity and refinanced with HUD using a single 223(f) with an impressive 2.14% note rate. The loan closed in October. “We worked on the long-term vision for this project with the client for a couple years, providing counsel and financing solutions along the way. The process has been intertwined with creativity and foresight, and characterized by our ability to lock in low, long-term interest rates,” said Jeffrey Spahn, senior vice president of originations for Merchants Capital and lead originator of the deals. “By utilizing the Merchants Bank of Indiana balance sheet for our clients to facilitate permanent loan business, we are able to secure and service loans for some of the largest developers nationwide and maintain our position as a leading FHA-insured multifamily lender.” 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 $17MM+ HUD 223(f) Loan for Trailside Flats in West Lafayette, Indiana
Merchants Capital Secures $25MM+ Fannie Mae Cash Preservation Loan for Affordable Housing in Joliet, Illinois
CARMEL, Ind. - Merchants Capital, a mortgage banking company, has secured $6.5 million in total funding for mixed-income development Trolley Station Terrace, a 45-unit affordable housing property. Located in Marinette, Wisconsin, Trolley Station Terrace will provide affordable and supportive housing to Marinette County residents in need. Of the $6.5 million financing, $1.8 million will go towards a Rural Development (RD) 538 option 3 loan and $4.7 million towards a Low-Income Housing Tax Credit (LIHTC) bridge loan. Merchants Capital worked closely with Wisconsin’s Rural Development and nonprofit developer Newcap Inc. to contribute to the project. Timing was a big hurdle in bringing the Trolley Station Terrace project to life. The Wisconsin Housing and Economic Development Authority (WHEDA) had strict deadlines for the project to break ground – otherwise, the credits would be lost. Contracts for building materials were set to expire quickly unless the financing was finalized. The Merchants Capital team successfully closed the deal on time, preserving the credits and the material contracts, ultimately saving the borrower hundreds of thousands of dollars. William Gilmore “Merchants Capital has a willingness and desire to provide affordable housing to all areas in need. We also pride ourselves in having flexibility on the financing to help borrowers get the best execution possible in the shortest amount of time,” said Merchants Capital Transaction Manager Gus Gilmore. “Our developer, Newcap Inc., is a nonprofit. Every dollar counts for them on these deals. We were able to be flexible in our LIHTC bridge loan to meet their needs as costs changed, timelines shifted and numbers were tweaked. We are thrilled with how efficiently we were able to work together on Trolley Station Terrace.” Newcap Inc. is a Wisconsin-based nonprofit founded in 1965 as part of the Community Action Network. According to their website, Newcap Inc. “helps those living with the conditions of poverty have better lives while helping them find opportunities to improve their lives for the futures of themselves, their families and their communities.” “Trolley Station Terrace is 45 new apartment homes for families in the Marinette area, 38 of which are reserved for low- and moderate- income workers who don’t have many good options for high quality, affordable housing,” said Cheryl Detrick, Newcap Inc. CEO and president. “Trolley Station is also a major step for Newcap in its mission of enhancing community development. Accessible, affordable housing is a critical component to moving families from poverty to opportunities and economic security.” The 38 LIHTC units will be available for renters who earn up to 30%, 50% and 60% of the area’s median income (AMI). These apartments include one-, two- and three- bedroom units. Additionally, nine of the units will be considered supportive housing. These rooms will be reserved for local veterans, including those who require long-term care services due to disabilities and/or impairments. All units will feature in-unit laundry, a patio or balcony, standard kitchen appliances and forced-air HVAC. Construction began on the property in late August 2020 and is scheduled for completion in August 2021. Once completed, the three-story Trolley Station Terrace will sit on 2.5 acres of land and will be located at 1535 Main Street. 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 and Nonprofit Developer Bring Affordable, Supportive Housing to Marinette, Wisconsin
Merchants Capital Secures $25MM+ Fannie Mae Cash Preservation Loan for Affordable Housing in Joliet, Illinois
SAINT PAUL, Minn. – Mortgage banking company Merchants Capital has provided more than $21.5 million in financing for a Minneapolis apartment complex currently under construction, The Bessemer at Seward Commons. The 30-month loan was secured on behalf of Bessemer Apartments, LLC, in partnership with co-developers Schafer Richardson, Seward Redesign and Noor Companies. Located at 2200 Snelling Avenue, The Bessemer at Seward Commons will consist of 128 housing units without income restrictions. The development will be transit oriented, as it is situated directly adjacent to the METRO Blue Line and Hiawatha Bike Trail and one block from the Franklin Avenue Station with no required street crossings. Building amenities will include a club room, fitness center, outdoor terrace, dog run, controlled entry, 24/7 package notification and storage system, bicycle storage and bicycle repair station, pet wash station, and on-site management. The Bessemer is part of a community led, master planned redevelopment referred to as Seward Commons that includes four separate housing developments with 260 rental units to accommodate a broad spectrum of incomes, as well as 33,000 square feet of small business incubator space for local business and arts organizations that reflect and serve South Minneapolis. These small businesses are primarily owned by women and/or Black, Indigenous and People of Color (BIPOC). The Bessemer represents a significant achievement for the Seward community as it represents the first non-income restricted housing project development in this neighborhood in over 40 years. In the face of multiple unprecedented challenges, including the pandemic and the civil rights uprising in the immediate area, Seward Redesign and Schafer Richardson, in partnership with multiple public and private partners including Merchants Capital, were able to successfully bring the project to life in partnership with the broader Seward community. “Throughout all the uncertainty, on top of a complex loan structure, Merchants Capital and Merchants Bank of Indiana stood by the loan and remained committed, providing assurance to the transaction,” said Marsha Goff, Merchants Capital executive vice president and lead originator on the deal. “During this period of meaningful protests and action of many types in our city, we have been very present for our existing clients and for new clients in bringing deals to market. We are proud to be leaning in.” As part of a redevelopment area with Noor Companies, this project utilizes Tax Increment Financing (TIF) awarded by the City of Minneapolis, an estimated $5.4 million over a 26-year period. The development also received environmental clean-up funds from Hennepin County, Metropolitan Council, and MN Department of Employment and Economic Development as well as a Transit-Oriented Development loan from Hennepin County. “The Bessemer had a complex structure with ten different funding sources,” said Amanda Janzen, Schafer Richardson senior development manager. “The Bessemer is also located in a census tract that is designated as an opportunity zone. We structured the deal to include two Qualified Opportunity Zone Funds (Catalyst Opportunity Funds and Schafer Richardson Opportunity Zone Fund), which resulted in the Bessemer being one of the first opportunity zone projects in the City of Minneapolis.” “This project is a key component of the larger Seward Commons redevelopment area, as it provides important socio-economic diversity within our local housing stock,” said Christopher Romano, executive director of Seward Redesign. “This diversity is good for our local entrepreneurs and commercial corridors, and it contributes to vibrant, diverse and healthy neighborhoods. The Bessemer is the result of significant voice and effort provided by many key community partners. We are very excited about this next phase of the Seward Commons development.” 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 Provides $21.5MM+ Loan for Transit-Oriented Apartment Community in Minneapolis