Loan Closings

Rendering of new development
CARMEL, Ind. (Sept. 21, 2020) – Mortgage banking company Merchants Capital has secured $7.25 million for The Ace, a new multifamily apartment complex coming to the east side of Madison, Wisconsin utilizing the Freddie Mac Unfunded Forward Commitment. Merchants Bank of Indiana is also providing Construction Loan financing of $16.89 million on behalf of co-developers, Movin’ Out, Inc. and Commonwealth Development Corporation. Following the 30-month construction forward, the Freddie Mac $7.25 million 9% LIHTC Forward will provide a 15-year permanent loan with a 35-year amortization period at an extremely attractive fixed interest rate that is “locked-in” at the closing of the construction loan. Additionally, as a member bank of the Federal Home Loan Bank (FHLB) of Chicago, Merchants Capital affiliate Farmers-Merchants Bank of Illinois was able to sponsor and secure an Affordable Housing Program (AHP) Grant award for The Ace, bringing in $885,000 of funding to the project. “Our organization has a unique, unmatched ability to support affordable housing projects with diverse financing needs,” said Merchants Capital Senior Vice President Brian Emmons. “The Merchants umbrella is the link to Freddie permanent financing, FHLB of Chicago AHP Grant funds and construction financing provided by Merchants Bank of Indiana. Because of the diverse connections available at our fingertips, we were able to secure the financing necessary to get this much-needed affordable housing project off the ground.” With 70 units across two buildings, The Ace will integrate 14 units of supportive housing that target individuals with disabilities, veterans, and/or individuals at-risk of homelessness. A total of 59 units are reserved for individuals making at or less than 30%, 50%, or 60% of the County Median Income. Co-developers Movin’ Out and Commonwealth Development Corporation were thrilled with the closing and Merchants Capital’s involvement. "Merchants Capital played a key role in this much needed project. Merchants’ ability to provide multiple pieces of financing was crucial to reaching a successful closing,” said Movin’ Out Real Estate Developer Megan Schuetz. Commonwealth Development Corporation Principal Christopher Jaye commented, “Brian Emmons and the Merchants’ team were proactive, creative and a great resource.” 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 Uses Freddie Mac Program to Provide $7.25M in Financing for The Ace, an Affordable Multifamily Complex Coming to Madison, Wisconsin
Affordable Housing in Joliet, Illinois
CARMEL, Ind. (Aug. 17, 2020) – Mortgage banking company Merchants Capital today announces that it has secured more than $14 million in new financing for West Pointe Commons, a 141-unit townhome community in southwest Sioux Falls, South Dakota. The project is financed through Merchants Bank of Indiana on behalf of a local investment group. The closing of West Pointe Commons is significant, as it marks the first loan Merchants Capital has provided in the state of South Dakota. The refinance of the property allowed the borrower to optimize equity for the project that was originally placed into service in 2016. The closing execution for West Pointe Commons was also efficient, especially considering the typical financing delays being caused by COVID-19, as it closed just 48 calendar days from the accepted term sheet. “At Merchants Capital, we are continuing to provide extremely competitive debt solutions to our affordable and multifamily housing clients throughout the pandemic,” said Merchants Capital Senior Vice President Brian Emmons. “This commitment is evident in our secured funding for West Pointe Commons. We are proud to continually assist our clients with ultimate long-term secondary market placement once these loan products begin to normalize post-COVID.” The loan also included a “swap rate,” a type of interest rate contract that is used to manage the risk of interest rate fluctuations and provide borrowers with a fixed rate. The borrower will have a fixed rate, and Merchants Bank of Indiana is able to earn interest on the loan based on a floating rate environment. West Pointe Commons offers one-, two- and three-bedroom townhome options and is pet-friendly. Various apartment amenities include a private entrance, central AC and an attached double garage. Outdoor and community amenities include a 24-hour fitness center, clubhouse, in-ground pool and playground. 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 Secures $14MM+New Financing for West Pointe Commons
Affordable Housing in Joliet, Illinois
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.
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Merchants Capital Secures $25MM+ Fannie Mae Cash Preservation Loan for Affordable Housing in Joliet, Illinois
Centennial Aspen
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). “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.
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Merchants Capital Arranges Bridge Loan for Centennial Aspen
Downtown Cincinnati Building
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. “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.
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Merchants Capital Secures $57MM HUD 221(d)(4) Loan for 4th & Race High-Rise in Downtown Cincinnati
Homeless Shelter in Queens
NEW YORK – Mortgage banking company Merchants Capital has secured $35.4 million in agency funding for a 133-unit multifamily transitional housing facility located on Jamaica Avenue in the Queens neighborhood of New York City. The project – known as Jamaica Apartments – is at the forefront of New York City’s asserted strategy for contending with and eradicating homelessness. The seven-year agency funding and immediate Freddie Mac Optigo® Targeted Affordable Housing Capital Markets Execution (TAH-CME) cash loan was secured on behalf of Freddie Mac and Bayrock Capital. This transaction represented another opportunity for Merchants Capital and Freddie Mac to establish themselves as a key counterparty and partner in financing multifamily shelters that serve New York City’s homeless population. In 2019, Freddie Mac and Merchants Capital worked together to provide $51 million in agency funding for another transitional housing facility, 267 Rogers. “A project of this magnitude and significance, especially during the COVID-19 crisis, is needed now more than ever,” said Merchants Capital Vice President Michael Milazzo. “The Right to Shelter obligation, which provides safe, multifamily housing with no required tenant contributions for homeless New Yorkers, is crucial as many Americans are out of work or otherwise struggling financially throughout these unprecedented times.” All residents of Jamaica Apartments are given access to social services and mental health counseling, as well as education and career training to help them get back on their feet. Each unit has its own private bathroom and kitchen. The two-building property was effectively built as a 133-unit multifamily development that partnered with the New York City Department of Homeless Services (DHS) to offer transitional housing to homeless families. The entire property offers truly affordable housing, as 100% of the units are reserved for transitional housing. In April 2016, New York City Mayor Bill de Blasio announced a major restructuring of the way homeless services in New York City are delivered. The city plans to open approximately 20 new multifamily transitional housing shelters annually over the next five years to reach its goal of opening approximately 90 new shelters. Jamaica Apartments represents one of the multifamily transitional housing shelters that New York City is utilizing to eradicate homelessness in the future. Others involved in the project include CORE, a community-based, non-profit human services organization whose mission is to empower individuals, families and communities to live productive lives, and Brook Hollow Capital, a boutique mortgage brokerage based in Mahwah, New Jersey, which helped to manage the closing process. To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, Twitter and LinkedIn.
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Merchants Capital Provides $35MM+ Agency Funding for 133-unit Multifamily Homeless Shelter in Queens
Merchants Capital Secures Funding for Moving Forward 2.0 Workforce Housing Development in Lafayette, Indiana
NEW YORK – Mortgage banking company, Merchants Capital, has provided $375 million in financing on behalf of a joint venture between Omni New York LLC (“Omni”), The Arker Companies (“Arker”), Dabar Development Partners (“Dabar”), and Bedford Stuyvesant Restoration Corporation (“Restoration”) to purchase and complete major renovations for more than 2,600 units scattered across nine Brooklyn developments, referred to as the NYCHA Brooklyn Megabundle (“PACT Brooklyn Bundle II”). In 2018, the Mayor’s Office and the New York City Housing Authority (“NYCHA”) released NYCHA 2.0, a comprehensive 10-year, $24.4BB plan to preserve NYC’s public housing, through capital investments which ensure residents have the safe, quality, and affordable homes they deserve. The cornerstone of NYCHA 2.0 is NYCHA’s Permanent Affordability Commitment Together (“PACT”) Preservation Initiative. PACT focuses on leveraging HUD’s Rental Assistance Demonstration Program (“RAD”), as well as other Section 8 programs, to marshal private debt and equity investment in NYC’s public housing stock. PACT Brooklyn Bundle II consists of a nine-development portfolio, with 2,625 units, located across Brooklyn. As part of its PACT Initiative, NYCHA issued an RFP for qualified applicants to finance, rehab, and manage this portfolio, which represents the largest preservation transaction executed to date under NYCHA’s PACT Initiative. The joint venture partnership between Omni, Arker, Dabar and Restoration was selected as the recipient of this RFP. The highly structured financing, crafted by the New York City Housing Development Corporation (“NYCHDC”), Freddie Mac and Merchants Capital in a collaborative effort, consists of a straight-to-permanent NYCHDC Freddie Mac Risk Share loan of approximately $375,000,000, which will fund the acquisition, rehabilitation and recapitalization of the property. The landmark NYCHA PACT transaction will benefit more than 6,300 residents by providing comprehensive upgrades to 2,625 apartments and common areas, including the complete renovation of residential unit interiors, installation of security systems, vital site improvements, common area improvements, community facility improvements, building exterior improvements, and replacement of building systems, as well as extensive electrical, mechanical and plumbing upgrades. The transaction will support the development, management and social service plans for nine developments: Armstrong I, Armstrong II, Weeksville Gardens, Berry Street-South 9th Street, Marcy Avenue-Greene Avenue Site A, Marcy Avenue-Greene Avenue Site B, 572 Warren Street, Independence Towers, and Williams Plaza. “Growing up in NYCHA Nathan Straus Houses, this transaction had a much deeper meaning – it brings me such joy to be able to provide quality housing to those who need it most, and to be able to work with people in this industry who are so proud and dedicated to working towards this same goal,” said Jessica Cherepski, Merchants Capital Senior Vice President and Chief Underwriter on the deal. “We’re honored to be a part of the team that closed this transaction which, beyond being historic, will affect meaningful change for thousands of deserving residents,” said Mathew Wambua, Merchants Capital Vice Chairman and Leading Originator on the deal. “Our gratitude is immeasurable and extends to our clients, Omni and Arker, as well as the innumerable parties and individuals who made this possible.” “Merchants Capital’s extensive lending expertise sets them apart,” said Eugene Schneur, Managing Director at Omni New York LLC. “We are deeply committed to guaranteeing local communities thrive and being part of the NYCHA Brooklyn PACT bundle is a perfect chance to support local Brooklyn neighborhoods, allowing communities to enjoy improved homes for generations.” “We are proud and excited to get to work on these critical repairs and bring modern amenities to the thousands of residents in the Brooklyn PACT bundle,” said Arker Companies Principal Daniel Moritz. “The NYCHA PACT program puts the community first and sets a new standard for preserving affordable housing for New Yorkers. Our hope is that this new partnership will improve the quality of life for residents and open up even more opportunities for their families.” “Together we are breathing new life into affordable housing developments that serve thousands of Brooklyn residents,” said Michael Patterson, Vice President of Underwriting and Credit at Freddie Mac Multifamily. “Freddie Mac is proud to have worked with our partners at Merchants, Arker, Omni and in city government to bring about this historic transaction, which brought out the best in each of the teams involved. This is an agreement that values communities, ensures residents have safe and modern housing and, most importantly, it preserves affordability where it is needed most.” To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, Twitter and LinkedIn.
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Merchants Capital Arranges $375MM Freddie Mac Financing for Milestone NYCHA PACT Brooklyn Bundle II Rehab of Over 2,600 Units
Housing on the Upper West Side of Manhattan
Mortgage banking company Merchants Capital recently structured the permanent financing for Goddard Riverside Community Center’s Phelps House, a 169-unit affordable housing complex for seniors, located at 595 Columbus Ave. (at 88th Street), to help secure the financial future of the property. Phelps House has historically provided – and through the success of this transaction will continue to offer – affordable, subsidized housing and services for low-income older adults in one of the most expensive and prestigious neighborhoods of New York City: the Upper West Side of Manhattan. The property also houses the Goddard Riverside offices and a full-service Senior Center which serves residents from the surrounding community. This long-term financing will enable the owner to keep the units affordable to tenants, while also continuing to provide them with quality housing by making capital improvements, including plumbing and accessibility upgrades. Additionally, the financing will extend the affordability period and subsidy term by a minimum of 20 years to ensure continued operations of the highest standard in the long term, in accordance with the Goddard’s mission to provide high quality senior services to their residents. This Freddie Mac and New York City Housing Development Corporation (HDC) Risk Share financing vehicle benefits Goddard, one of the oldest non-profit/social services providers in the city. “The Phelps House transaction exemplifies the type of mission-driven preservation of affordable housing that we love to be a part of,” said Merchants Capital Vice Chairman Mathew Wambua. “We are grateful to Goddard for their vision and commitment to community, and we are deeply appreciative to HDC, Housing Preservation & Development (HPD), Freddie Mac, and Rockabill Consulting for their partnership. Merchants Capital is proud to have been a participant in assisting the operating of a pillar of the community such as Goddard Riverside.” Last year, more than 22,000 New Yorkers took part in the wide range of activities offered by Goddard.  The agency’s programs range from early childhood education and school-based/after school-based programs, to providing over 540 units of permanent housing with on-site supportive services. Goddard also provides outreach with extensive aid to people living with mental illness and those who are experiencing homelessness, as well as assistance to older adults and those with mobility impairments. “Goddard Riverside’s goal is to invest in people and strengthen the community, and older adults are a key part of that picture. Goddard will be able to continue providing high-quality housing at an affordable price for them,” said Goddard Riverside Executive Director, Roderick L. Jones, Ed.D. “The new resources will allow Goddard to enhance efforts to ensure those most in need are helped.” “Rockabill is grateful for our longtime partnership with Goddard Riverside Community Center, and for the opportunity to assist with their affordable housing preservation and development goals,” said Niall Murray, Managing Principal of Rockabill Consulting and Development. “This transformative deal was the result of a strong and committed group from Goddard Riverside, Merchants Capital, Freddie Mac, HUD, HPD, and HDC working to ensure this vital Upper West Side senior housing remains affordable and viable in the long term. Through the forward-thinking initiative of the Goddard Riverside staff and board of directors, Phelps House will continue to house low-income seniors in the community for years to come.”
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Merchants Capital, Freddie Mac, and New York City Housing Development Corporation Provide $66 Million Risk-Share Loan for the 20-Year Preservation of Section-8 Affordable Housing on the Upper West Side of Manhattan
Housing Development in Lafayette, Indiana
CARMEL, IN (June 27, 2019) – Mortgage banking firm Merchants Capital has secured funding for a new 32-unit workforce housing development in Lafayette, Indiana. This development is part of the state of Indiana’s Lieutenant Governor’s office as a Moving Forward 2.0 workforce tax credit housing development with an emphasis on breaking the barriers that result in generational poverty. Using net-zero construction, the development – known as H38 East Apartments - leverages the Indiana Housing and Community Development Authority (IHCDA) program Moving Forward 2.0, an innovative program aimed at providing affordable, energy-efficient housing and transportation. In partnership with RealAmerica Development, LLC and Area IV Agency, this development will create housing that increases quality of life while decreasing the cost of living for low- to moderate-income individuals and families. The City of Lafayette and Lafayette Housing Authority provided HOME funds and tax abatement for H38 East Apartments. “This innovative affordable housing project, H38 East Apartments, combines a healthy way of living with partnerships that bring together energy efficiency, education and skills development, nutrition and wellness, along with breaking transportation and child care barriers to allow for successful resource and employment development,” said Elva James, executive director of Area IV Agency on Aging and Community Action Programs. All of the units will be priced affordably for low- to moderate-income individuals and families with 30 units priced at 60% of of the area median income (AMI) and two units priced at 50% AMI. Additionally, as part of the Moving Forward 2.0 Program, each household will have the opportunity to participate in an ongoing research study to determine the effectiveness of the program. “This development is one of the first of it’s kind in Indiana, and we appreciate the opportunity to work alongside the RealAmerica and Area IV Agency teams,” said Michael R. Dury, president of Merchants Capital. “Using this unique funding structure, our team was able to provide the construction loan, tax credit bridge financing, and permanent financing which helped streamline the lending process from start to finish.” Using an extremely efficient building design, the new development, located at 3791 Winston Drive, in Lafayette, will include solar power and geothermal features that use 35% of the energy a typical apartment would require. The property is located near Franciscan Health Lafayette East, the YMCA of Lafayette, the Lafayette campus of Ivy Tech, the Tippecanoe Mall and city bus line. “We were honored to be chosen as part of the Moving Forward 2.0 program through IHCDA to help address generational poverty. It truly takes a team to create such an amazing program to help families thrive,” said Ronda Shrewsbury Weybright, president and owner of RealAmerica Development, LLC. “H38 East will do just that with its affordable, net-zero apartment homes and opportunities through supportive services. Seeing the support from the community and businesses coming together to help create such a positive program is remarkable.” Area IV Agency’s onsite Life Skills Coach mentoring program will assist families in areas of life skills, education and career development. Additionally, the development will contract with Enterprise Rent-A-Car to provide a car-share program, Faith Ministries Car Repair and Loan Program, and local transportation providers. H38 East Apartments will also be home to a Community Building with unique amenities, including a classroom, STEM center, technology center, a teaching kitchen and more. Additional community amenities include a playground, community gardens, and recreation and athletic area, along with a fitness and wellness center and a bike-share program.
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Merchants Capital Secures Funding for Moving Forward 2.0 Workforce Housing Development in Lafayette, Indiana
Homeless Shelter in New York City
CARMEL, IN – Mortgage banking firm Merchants Capital has secured $51 million in agency funding for a homeless shelter in the Crown Heights neighborhood of New York City on behalf of Heights Advisors, a leading social impact investor, and Samaritan Daytop Village (SDV), a nationally-recognized human services organization. The project – known as 267 Rogers - embodies an emerging model that New York City is utilizing to eradicate homelessness in the future. Through the Freddie Mac Affordable Housing Capital Markets Execution (CME) Loan Program, this transaction represented an opportunity for Merchants Capital and Freddie Mac to establish themselves as a key counterparty and partner in financing public-benefit multifamily buildings that serve residents most in need. “It has been deeply gratifying to work on the deployment of capital on a project that allows homeless families to live in dignity,” said Mathew Wambua, executive vice president at Merchants Capital. “Projects like 267 Rogers allow the Merchants Capital team to be creative and innovative in solving problems and seeking new financial strategies and structures to solve those problems while serving an immediate need right here in our community.” The property was effectively built as a 165-unit multifamily development under the typical 80/20 structure in New York City. This property is unique, however, in that rather than renting 80% of the units to market-rate tenants, they instead partnered with the Department of Homeless Services (DHS) and SDV to offer transitional housing to homeless families. Thus, the entire property offers affordable housing wherein, 80% of the units are reserved for transitional housing and the remaining 20% are set aside for families earning 60% of the area medium income (AMI) or below. Through the partnership with SDV, the property is able to offer supportive services to all tenants, including employment and job readiness services, daily living workshops, and personal financial management, as well as education and child care assistance programs. “It is a priority for us to contribute and be responsive to the communities we work within. We are excited to work with Steve Banks and the DHS staff to create fully-integrated, quality housing for families in need,” said Rachel Foster, principal and founder of Heights Advisors. “We greatly appreciate the financing the Merchants Capital team was able to provide. We look forward to continuing to work alongside the city and those in the private and nonprofit sector to bring new solutions to the housing crisis.” In April 2016, Mayor de Blasio announced a major restructuring of the way homeless services in New York City are delivered, creating an integrated and streamlined management structure for DHS and the Human Resources Administration (HRA) under the commissioner of the Department of Social Services. The Mayor’s new anti-homelessness plan represents a paradigmatic shift from the way in which previous administrations have mobilized to combat chronic homelessness, transitioning out of the 360 scattered apartment sites and commercial hotel facilities and replacing them with approximately 90 new multifamily transitional housing shelters. New York City plans to open approximately 20 new multifamily transitional housing shelters annually in the next five years to reach its goal of opening approximately 90 new shelters. 267 Rogers represents one of the first multifamily transitional housing shelters that has been developed as the cornerstone of the new mayoral plan.
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Merchants Capital Provides Agency Funding for 165-unit Homeless Shelter in New York City

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