CHICAGO – The Chicago office of mortgage banking company Merchants Capital recently secured a Merchants Bank of Indiana (MBI) construction loan for the development of 53 Colton Street, an affordable housing complex currently under construction in downtown San Francisco. Located in Mid-Market one of San Francisco’s fastest growing neighborhoods, 53 Colton Street will provide 96 affordable and supportive efficiency studio apartments to formerly homeless adults. All units will be reserved for residents referred through the Coordinated Entry System (CES).  The project will create much needed deeply affordable housing at the center of the city. “Closing the first MBI construction loan in downtown San Francisco is a tremendous success for Merchants Capital,” said Lee Oller, executive vice president of Merchants Capital’s Chicago office. “This development is especially noteworthy as it takes an overlooked area and transforms it into a new hub of activity for both residents and workers.  This is truly taking a net-negative and turning it into a net-positive for the neighborhood and the city. We at Merchants are proud to have partnered on such a meaningful project for San Francisco and the Bay Area.” With groundbreaking expected this winter, the structure and design of 53 Colton Street will focus on meeting the everyday needs of a supportive housing community, while simultaneously creating a residence that is beautiful, sustainable and cost-efficient. Each of the 96 studio units will be equipped with a private bathroom and kitchenette. Building amenities include common areas, a community room with dining area and kitchen, a bike room, common laundry facilities and a private landscaped courtyard.  The building is designed by David Baker Architects, one of San Francisco’s leading architecture firms. “53 Colton is a wonderful example of what’s possible with a partnership that includes for-profit and non-profit developers, the City of San Francisco, State of California, organized labor, and financial institutions like Merchants, Enterprise, and the AFL-CIO. We are excited to see this project come to fruition,” said Michael Cohen, a Founding Principal of Strada Investment Group. Additionally, the property management group, Community Housing Partnership (CHP) will provide on-site case managers and counselors to support residents in an effort to improve their overall quality of life and stimulate them to become self-reliant. "Our organization's mission is to create a permanent home for people who have experienced homelessness. The challenge is large and requires all of us to work together; we have forged partnerships with lenders, state and local government and philanthropy to achieve the goal. Our partnership with MBI was instrumental in our success,” said Community Housing Partnership CEO Rick Aubry. In addition to the MBI construction loan, Merchants Capital also provided the Low-Income Housing Tax Credit (LIHTC) equity bridge loan. “Transforming this area into a beautiful, welcoming development while providing affordable housing to many San Francisco residents is truly a remarkable project,” said Susan Schnoll, senior vice president, originations of Merchants Capital’s Chicago office. “Merchants is proud to have partnered with Strada Investment Group and CHP to bring 53 Colton Street to life. It will provide necessary housing to those who need it most.” The development at 53 Colton Street is expected to be completed by the spring or summer of 2022. To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, Twitter, LinkedIn and Instagram.

CHICAGO – The Chicago office of mortgage banking company Merchants Capital recently secured funding for the development of Montclare Senior Residences of Calumet Heights. Financing for the project was obtained through the United States Department of Housing and Urban Development (HUD) 221 D4 program. The project was completed in partnership with MR Properties, LLC and Patti Ann Charitable Services. Located in the historic “Pill Hill” neighborhood on Chicago’s South Side, the senior housing property serves individuals 62 years and older in 134 one- and two-bedroom units, with 104 units reserved for extremely-low, very-low and low-income households earning no greater than 60% of the area median income (AMI). Within these 104 designated units, 34 units will be subject to a project-based Section 8 HAP contract administered by the Chicago Housing Authority and 21 units will have tenants who were referred by the Statewide Referral Network. The property will also have 30 market rate units with no income restrictions, 14 accessible (Americans with Disabilities Act-compliant) units and three units with special accommodations for persons with seeing and hearing impairments. Merchants Capital served as senior lender for the project, securing a construction and permanent non-recourse loan through the 221 D4 program, providing a 40-year term and 40-year amortization. “We are a leading advocate for building and preserving affordable housing for all Americans, including our seniors in Chicago,” said Alan Cravitz, senior vice president of Merchants Capital’s Chicago office. “Merchants Capital is thrilled to continue providing loan financing for necessary affordable and accessible housing options to individuals in our Chicago community. Our team is glad to have been a part of this important development servicing mixed-income seniors in the historic ‘Pill Hill’ neighborhood.” Executive Vice President Lee Oller, also with Merchants Capital’s Chicago office, co-originated this financing with Cravitz. Constructed on part of a previously vacant five-acre lot on Chicago’s far South Side, Montclare Senior Residences of Calumet Heights boasts tremendous amenities for its residents including a community room with warming kitchen, fitness center, medical exam room, media room, library, computer lab, beauty salon, centralized mailroom and laundry facilities. On the exterior, residents are able to enjoy beautifully landscaped grounds and walking paths. With construction complete, the complex is one of seven Montclare developments in the Chicago area. For this project, an estimate of 464,000 work hours were contributed from 100% Union labor, creating 300+ construction jobs during the build and seven full-time, on-site staff positions to run the facility. Montclare Senior Residences of Calumet Heights is located at 9401 S. Stony Island Avenue, which is central to local transit, health care offices and retail outlets. “We sincerely appreciated the financial assistance provided by Merchants Capital. They were extremely reliable and timely, and seemed to be the most proficient of all of Senior HUD loan providers that we have worked with over the last 20 years. We look forward to working with them on our future projects,” said MR Properties Managing Director Phil Mappa. To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, Twitter and LinkedIn and Instagram.