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.

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. “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.