Press Release

CARMEL, Ind. (May 10, 2023) – Leading financial services provider Merchants Capital proudly announces the success and growth of its Capital Markets platform, led by Senior Vice President Evan Gibson. Since its inception in 2020, the group has executed over $3 billion in securitizations and has accumulated over $900 million in assets under management. The platform focuses on providing liquidity and capital relief for parent company Merchants Bank of Indiana, to support growth in its direct bridge and construction lending. As a result of successfully executing on this strategy, the Capital Markets team has evolved into creating proprietary permanent debt solutions that supplement Merchants Capital’s balance sheet and agency lending product offerings. Gibson started the Capital Markets group in March 2020, and the team has since grown to seven who work out of the company’s Carmel and New York offices. Notable hires included Vice Presidents Dean Ramsamooj and Darren King in 2021 and 2022, respectively. On March 30, the Capital Markets team, alongside leading seniors housing and healthcare lender VIUM Capital and structuring agent and sole bookrunner ATLAS SP Partners, closed a private synthetic securitization of over $1.1 billion of first-lien floating-rate skilled nursing and seniors housing bridge loans. Merchants Capital will continue to service these loans. Merchants Bank of Indiana issued and sold $158 million aggregate principal balance of Senior Credit Linked Notes, representing approximately 14% of the reference pool. The resulting reduction in risk weighted assets for this pool of loans supports further growth and lending capacity at Merchants Capital and VIUM Capital. This synthetic securitization comes just six months after closing a securitization of $1.2 billion in multifamily bridge loans in September 2022. "Having the opportunity to lead our growing Capital Markets group is an honor, and I am proud of the impact our team has had across the Merchants platform in just our third year of operation,” said Gibson. “Our role in creating innovative solutions directly contributes to the success of the Merchants lending platform and supports the firm’s status as an industry leader in financing both multifamily through Merchants Capital, and healthcare through its partnership with VIUM Capital. This integrated platform is unique in the industry and allows us to continue servicing our clients from coast to coast with an increasing array of solutions and capacity.” In 2021, the Capital Markets group closed its first Freddie Mac Q-Series transaction, a $262 million deal that securitized 15 workforce housing loans for properties across the nation, supporting the preservation of critical housing infrastructure. In 2022, the group executed on its second and third Q-Series deals, a program that Merchants Capital expects to continue to leverage with Freddie Mac in the future. Both 2022 Q-Series transactions were designated by Freddie Mac Multifamily for their Social Bonds program, which has a framework validated through Sustainalytics’ second-party opinion. These transactions have helped define criteria for Environmental, Social and Governance (ESG) qualifying investments in affordable multifamily. “The growth of our Capital Markets group has been instrumental in our ability to lead the industry as one of the nation’s top multifamily financing providers,” said Brian Sullivan, Executive Vice President and Chief Operating Officer at Merchants Capital. “The maturation of the platform in just three years is a true testament to the work ethic and ingenuity of Evan, Dean, Darren and the team. This group has transformed the possibilities of our lending platform, widening our reach in the market and working towards our larger goal of increasing access to safe, high-quality housing for individuals and families nationwide.” To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, Twitter, LinkedIn and Instagram.

CARMEL, Ind. (May 1, 2023) – Leading financial services provider Merchants Capital today announces the company has earned a top-ranking position on the prestigious Affordable Housing Finance (AHF) Top Lenders listing, ranking in as the #2 lender nationwide for 2022 – up from #8 last year. Recently, Merchants Capital announced that the firm closed $8.95 billion in debt production in 2022, shattering 2021’s previous record of $7 billion, a 27% increase in a year the industry contracted by 11%, according to the Mortgage Bankers Association. Throughout 2022, Merchants Capital saw significant growth despite a turbulent year for the industry. This included a 77% increase in Merchants Bank balance sheet lending with over $7 billion, a 48% increase in Freddie Mac Targeted Affordable Housing (TAH) production, and a total affordable debt production of $5.9 billion (a 90% increase from 2021). “This recognition would not have been possible without the determination of our team members and the confidence our clients have in Merchants,” said Dwayne George, Executive Vice President, National Head of Production at Merchants Capital. “Being recognized by Affordable Housing Finance as the #2 lender in the nation further solidifies our place in this industry. We are humbled by the accolade and look forward to another year of executing for our clients and counterparties.” Merchants Capital’s innovative and tailored financing solutions help bring critical multifamily housing projects to life across the country. In addition to expertise in tax credit equity syndications and affordable housing, the firm also specializes in bridge and agency financing to support market-rate developments. “The work we do at Merchants Capital helps provide individuals and families with the high-quality, safe and affordable housing they deserve,” said Mathew Wambua, Merchants Capital’s Vice Chair & Head of Agency Lending. “This honorable ranking as the #2 affordable housing lender in the country is a direct result of our dedication to our mission. We’re incredibly grateful to our team all across the U.S., as well as to our valued partners who have entrusted us with the financing of key developments throughout the nation. We look forward to continued success in affordable housing finance for years to come.” AHF Top Lenders is a comprehensive ranking of the top 25 affordable lenders. The annual list was compiled through surveys submitted by lenders in early 2022, detailing the organizations’ 2022 total volumes in affordable debt production. The full ranking can be found here. To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, Twitter, LinkedIn and Instagram.

NEW YORK (April 3, 2023) – The New York office of leading multifamily financier Merchants Capital today announces it has secured more than $25.9 million for the renovation and upgrade of Mirador Las Casas, a Section 8 and Low-Income Housing Tax Credit (LIHTC) multifamily development located in San Juan, Puerto Rico. This project is notable as a return by the Puerto Rico Housing Finance Authority to 4% LIHTC housing bond issuance. The property features 294 units across 21 three-story buildings, with a variety of two-, three- and four-bedroom floor plans. Long term Section 8 and LIHTC agreements ensure the extended affordability for the residents of Mirador Las Casas. The planned renovation will preserve quality living standards in addition to providing residents with new amenities and services. Sixteen of the total units will be reserved for people with functional diversity, including three units marked as “sensory accessible” for those with hearing impairments. Less than four miles from the highly sought after Isla Verde Beach, Mirador Las Casas provides critical affordable housing for low-income families of San Juan. The property is one of 22 owned across the island by the accomplished local developer and investor Fernando L. Sumaza & Co., LLC. Funded sources will support an extensive renovation of the property, including in-unit amenity improvements of kitchens, baths, balconies and installation of in-unit washer and dryer appliances. Additional improvements will include construction of a leasing office, community building, digital library building, basketball court, playground, maintenance building and storage sheds. New sidewalks will be installed throughout the property, and all parking areas will be resurfaced. Merchants Capital New York secured a $25.9 million Merchants Bank of Indiana (MBI) bridge loan on behalf of the property owner. The revolving MBI bridge loan will cash collateralize a $56 million publicly offered housing bond issuance by Puerto Rico Housing Finance Authority and enable the project to comply with federal LIHTC regulations. LIHTC equity for the project was syndicated by The Richman Group. Purchaser’s/Underwriter’s counsel was provided by Tiber Hudson and bond underwriting by Stifel. “Merchants was able to provide an innovative cash collateralized structure for Mirador Las Casas. This loan complies with federal LIHTC 50% test requirements and reduces required interest reserve development costs. Providing a cash collateralized financing product in Puerto Rico represents a major milestone for our team and the affordable housing finance industry,” said Ben Levine, Senior Vice President of Originations at Merchants Capital New York. “Communities in Puerto Rico are still recovering from the devastation of Hurricane Maria in 2017. We are hopeful that by working alongside the Puerto Rico Housing Finance Authority and the development team for Mirador Las Casas we can make a positive contribution to the Puerto Rican community.” “It has been a grateful experience working with Merchants and the other professionals that made this deal possible,” said Alexandra Domenech, President of Fernando L. Sumaza & Co, LLC.  “Merchants' entry into the Puerto Rico financial market provides new opportunities for the development of affordable housing on the island, and we are glad that they started with our project. The Sumaza team is eager to see the families of Mirador Las Casas Apartments enjoying the renovated and modern housing.” To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, Twitter, LinkedIn and Instagram.

CARMEL, Ind. (March 28, 2023) — Leading multifamily financing provider Merchants Capital today announces it has secured financing for the development of The Farm, a class A, market-rate property located in Zionsville, Indiana. With 400 total units, the project will be the only one of its kind in the area. Situated at the intersection of Michigan Road and Sycamore Street on more than 48 acres of land, The Farm will bring 400 units to Zionsville with an additional 225,000 sq. ft. of retail and commercial space. The development’s prime location will give residents direct access to the city’s major interstates, allowing convenience to downtown Indianapolis and its surrounding suburbs. Property amenities will include a modern and professional fitness center, co-working spaces, golf simulator, gourmet coffee bar, pickleball court, pavilion with fire pit, upscale dog park, rooftop patio and more. Residents will have access to garage spaces as well as covered bicycle parking. To finance development of The Farm, Merchants Capital secured a Merchants Bank of Indiana (MBI) construction loan for the key developer, Scannell Properties, and co-developer Pittman Investors. Headquartered just east of Zionsville in Carmel, Merchants Capital is a national leader in multifamily financing, with expertise in deal structures supporting multifamily, market-rate and affordable housing properties. Merchants served as a financing partner on The Farm alongside other local parties including Lake City Bank and the National Bank of Indianapolis. “Our roots as a company are in Indianapolis and its surrounding suburbs, and we consistently make it our priority to partner on projects that will benefit our local communities and its residents,” said Anthony Cossell, Transaction Manager at Merchants Capital. “The Farm’s design is authentic to the history of Zionsville and blends premier quality with scale in order to be the perfect addition to the town, an area historically scarce in rental properties.” Construction of The Farm will serve as Phase 1 of the larger Planned Urban Development (PUD) project outlined by the Town of Zionsville. Coined the “Gateway District,” the concept is to improve walkability and accessibility for locals by joining residential living with retail shops, convenience stores, dining and more. Phase 2 of the project will focus on the commercial aspect. “We are thrilled to launch development of The Farm at Zionsville and thank our lender partners at Merchants Bank of Indiana and Merchants Capital for their assistance in getting us to the launching pad. We look forward to working closely with the town and our business partners to ensure The Farm will be a welcoming focal point for living, working, shopping and dining,” said Shawn Hitchcock, Director, Scannell Properties. Debut of The Farm in early 2025 will bring much-anticipated multifamily units to Zionsville, currently a heavily undersupplied rental housing market. Upon its completion, the property will be a state-of-the-art project that will provide the best-in-market rental housing to individuals and families in the region. Pre-leasing is expected to commence in May 2023. To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, Twitter, LinkedIn and Instagram.

CARMEL, Ind. (March 2, 2023) – Leading financial services provider Merchants Capital announced it closed a record $8.95 billion in debt production in 2022, surpassing the previous record of $7 billion set in 2021. The firm saw significant growth in many product offerings in 2022, including a 77% increase in Merchants Bank balance sheet lending with over $7 billion, a 48% increase in Freddie Mac Targeted Affordable Housing (TAH) production and an overall 27% increase in 2022 financing volume. Merchants Capital continued to execute throughout 2022 despite turbulent market conditions with unprecedented interest rate volatility. A recognized leader in the affordable housing industry, Merchants’ affordable debt production in 2022 grew dramatically to $5.9 billion, a 90% increase from its $3.1 billion produced in 2021. These record-setting numbers come on the heels of the firm’s recent recognitions as the #3 Multifamily Affordable Lender from the Mortgage Bankers Association, the #4 Freddie Mac Multifamily TAH Lender in 2022 and #4 in the number of U.S. Department of Housing and Urban Development (HUD) 221 (d)(4) deals closed, according to the Federal Housing Authority (FHA) multifamily production summary for fiscal year 2022. “It is a true indication of the tenacity of our employees that we are able to announce yet another record-setting year in debt production for our company,” said Dwayne George, Executive Vice President, National Head of Production at Merchants Capital. “This great achievement could not be accomplished without the trust of our clients and the incredible hard work of our dynamic team. Throughout 2022, the market proved to be full of unique challenges due to unprecedented inflation and interest rate volatility, yet our team remained steadfast in its approach to create flexible solutions for our clients to support the preservation and development of multifamily housing nationwide.” Merchants Capital aims to provide tailored, end-to-end financing solutions for a variety of multifamily housing projects across the nation. The firm specializes in crafting bridge and agency financing structures to support market-rate and luxury developments, in addition to affordable and workforce housing solutions. “We pride ourselves on being able to provide custom financing options that meet the explicit needs of our clients,” said Lee Oller, Executive Vice President, Originations and head of the firm’s Chicago office. “Our innovative product offerings allow us to easily structure and execute deals that support new development, preservation and rehabilitation of critical housing properties in our nation. We look forward to expanding our financial footprint even further as a company this year.” “We are incredibly proud of our dedicated employees who continue to make the Merchants name a fixture in the industry,” said Marsha Goff, Executive Vice President, Originations and head of Merchants’ Saint Paul office. “This milestone is a direct reflection of our teams across the country, and their unique commitment to these projects is truly commendable.” Merchants Capital is headquartered in Indianapolis, with five additional production hubs nationwide located in Chicago, New York City, Saint Paul, Washington, D.C. and Boston, which opened in 2022. To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, Twitter and LinkedIn and Instagram.

SAINT PAUL, Minn. (Feb. 23, 2023) – Leading financial services provider Merchants Capital today announces it has provided approximately $90 million in construction, permanent financing and Low-Income Housing Tax Credit (LIHTC) equity for the development of Solana Villas, a federal LIHTC community to be built in Buckeye, Arizona near Phoenix. The community will be developed by prominent commercial real estate developer Roers Companies, with financing provided by Merchants Capital and Merchants Bank of Indiana (MBI). Solana Villas will be set on approximately 10.7 acres of land and include 200 total units across eight garden style apartment buildings. Upon completion of construction, the complex will include eight three-story buildings and one two-story building consisting of a mix of one-, two- and three-bedroom floor plans. All units will be restricted to individuals earning no greater than 60% of the area median income (AMI). Merchants Capital secured financing for the property consisting of a $33 million MBI tax-exempt construction loan, a $24 million MBI taxable construction loan and a $31.5 million Freddie Mac Tax-Exempt Loan (TEL) forward commitment for the permanent loan. A 4% LIHTC equity investment of $27.8 million was provided by Merchants. “In the past several years we have focused on expanding our presence as an affordable and multifamily financier nationally, and this new property contributes to our overarching goal,” said Marsha Goff, Executive Vice President of Merchants’ St. Paul office. “Solana Villas is a critical piece of the redevelopment landscape in this community, and it has been an honor to partner with Roers Companies to support their first affordable housing build in Arizona.” Roers Companies’ contributions to design and execution of Solana Apartments proved to be pivotal in the initial development process. “This deal represents an exciting opportunity to deliver much needed affordable housing to the Buckeye area,” said Kevin Sturgeon, Senior Development Consultant at Roers Companies, the property developer. “We appreciate our partnership with Merchants Capital and value their creativity in getting this transaction done.” To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, Twitter and LinkedIn and Instagram.

NEW YORK (Feb. 7, 2023) – The New York office of leading financial services provider Merchants Capital announces the firm has set a record-breaking year with its debt production, totaling approximately $1.3 billion during 2022. The total production numbers served to finance and preserve a variety of properties across the nation, including affordable, multifamily and senior housing. This significant year-end milestone serves to highlight Merchants Capital New York’s notable top-tier status as a financier for a diverse portfolio of clients. To achieve this year’s groundbreaking success, the firm serviced a variety of loan structures including balance sheet, Freddie Mac, Fannie Mae and Federal Housing Administration (FHA) products, among others. “The continued success of our New York office is a testament to the stamina and dedication of our employees and their persistence in crafting invaluable deal structures for our clients both locally and nationally,” said Mathew Wambua, Merchants Capital’s Vice Chairman, Head of Agency Production. “Over the years, our New York production hub has served as the gateway to properties and developers along the East Coast, and we saw many of those relationships flourish in 2022. We hope to continue to be a resource for affordable housing development and preservation in 2023 and look forward to another year of great growth and success for our team and company.” As part of its commitment to increasing accessibility and affordability for housing in the United States, Merchants Capital takes great strides to extend its lending volume to numerous affordable project types including preservation and new construction loans for 4%, 9%, Section 8, public, supportive and mixed-income housing properties. Merchants Capital New York is one of Merchants’ six production hubs nationwide, in addition to Chicago, Indianapolis, Saint Paul, Washington, D.C. and Boston, which opened in 2022. Nationally, Merchants Capital provided over $8.9 billion in financing for a variety of multifamily projects during 2022. 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. (Feb. 1, 2023) – Leading financial services provider Merchants Capital today announces the promotion of Josh Reed to Executive Vice President. Reed leads the acquisitions team within Merchants’ tax credit equity division and previously served as Senior Vice President. Since joining the company in late 2020, Reed has been instrumental in developing equity relationships with new and existing partners and has played a leading role in the growth of Merchants Capital as a leading national syndicator with over $650 million in closed lower tier equity since inception with top industry developers in nearly 30 states. “The success of our equity division is a direct reflection of the talent, commitment, and leadership of Josh Reed,” said Julie Sharp, Executive Vice President of Merchants Capital. “Linda Hill and I feel privileged to continue to work alongside Josh to execute high-quality deals for our clients across the United States and congratulate him on this well-earned promotion.” Reed is a recognized leader in the industry and his experience includes consulting for tax credit developers on various aspects of sourcing and structuring LIHTC real estate projects. Previously, Reed served at one of the nation’s largest tax credit equity syndicators where he engaged in closing, underwriting, and structuring over $700 million in lower tier equity acquisitions nationally. He also previously managed the construction department that oversaw construction underwriting and monitoring for projects nationwide, including over $600 million in equity investments. To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, Twitter and LinkedIn and Instagram.

SAINT PAUL, Minn. – Leading multifamily financing provider Merchants Capital today announces it has provided more than $77 million in financing for the development of Soul, an affordable, mixed-use development in Saint Paul, Minnesota. The property – owned and developed by the key partner on the project, Schafer Richardson – is a crucial redevelopment project for the city and an important factor in its commitment to expanding and improving access to affordable housing within Saint Paul city limits. Situated on the West Side at the intersection of Robert Street and Plato Boulevard, Soul will provide 178 units of affordable housing to Saint Paul residents and families. The mixed-use complex will be constructed on a redevelopment site of a current city infill location, with all construction completed as 100% union labor and union construction. An environmental cleanup of the area will be associated with the redevelopment. The property was designed, and will be built, to earn an Enterprise Green Communities Certification, and will meet all necessary standards to comply with the City of St. Paul’s sustainable building policy. Additionally, the development will feature a rooftop solar array to support lower electricity rates. Upon completion of construction, Soul will feature one-, two-, three- and four-bedroom units, a unique feature designed to meet the needs of both local individuals and families. Of the total 178 units, 23 three-bedroom and 12 four-bedroom apartments will be restricted at 30% area median income (AMI), providing a deeply affordable option for families. The remaining 143 units comprise one-, two- and three-bedroom floorplans and will be restricted to individuals earning 60% AMI or lower. The 35 deeply affordable units will remain affordable at 30% AMI for 30 years, and all units within the property will remain at 60% or lower for 40 years. A proven leader in the multifamily lending space, Merchants Capital arranged the debt financing for Soul totaling more than $77 million. The firm secured a $33 million Merchants Bank of Indiana (MBI) construction loan, a $16.6 million MBI equity bridge loan and a $27.45 million Freddie Mac Tax-Exempt Loan (TEL) to comprise the total $77 million. RBC Capital Markets served as the equity provider for the project. “Supporting our local residents, families and communities by crafting innovative financing solutions for these much-needed affordable housing properties is what we do best,” said Marsha Goff, Executive Vice President at Merchants Capital’s Saint Paul Office. “Our mission is to work hand-in-hand with local developers and cities to increase access to high-quality, affordable housing, and the development of Soul is a beautiful depiction of that mission in action. We are grateful for the opportunity to showcase our commitment to the residents of Saint Paul and are determined to continue to make an impact in this neighborhood and nationwide.” Marsha Goff Merchants Capital was proud to work alongside Schafer Richardson, together with Greater Minnesota Housing Fund, AFL-CIO Housing Investment Trust (HIT), Freddie Mac, RBC Capital and Ramsey County. The City of Saint Paul also contributed greatly to the project through allocation of American Rescue Plan Act (ARPA) funds and grants to support gap financing. “Soul is Schafer Richardson’s third development with Merchants Capital, and we value their expertise and creativity in getting complicated real estate transactions done,” said Katie Anthony, Vice President of Development at Schafer Richardson. “Soul will add critical affordable housing units and positively activate an important corner of the West Side neighborhood in St. Paul and Merchants partnership is an essential element in that transformation.” The design firm serving as the project architect is Kaas Wilson Architects, and Weis Builders is serving as the project’s general contractor. Construction is currently underway, with an anticipated completion date in Q2 of 2024. 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. – Leading multifamily financing provider Merchants Capital today announced it has secured a $15.5 million U.S. Department of Housing and Urban Development (HUD) loan for Lakeshore Manor in East Chicago, Indiana. Located on the corner of 136th and Main Street on the northwest side of the city, the new development will bring 206 units of income- and age-restricted housing to the area. Originally designed to replace the now-closed John B. Nicosia senior building, Lakeshore Manor will be entirely new construction, consisting of two four-story buildings that comply with National Green Building Standards (NGBS). The 221(d)(4) new construction deal will allow the property to feature 206 one- and two-bedroom apartment units reserved for seniors 62 years of age and older and/or disabled residents, with rent restricted at 60% of the area median income (AMI). Merchants Capital secured $15.5 million in HUD financing to support development of the project, along with a $13.5 million equity bridge loan through its parent company Merchants Bank of Indiana. Cinnaire, the property’s equity investor, provided a $21.7 million LIHTC investment in the project for a total development cost of $51 million. Upon completion of construction, all units at Lakeshore Manor will feature electric ranges, refrigerators, laminate countertops, ceiling fans, window treatments, central air conditioning and walk-in closets. As a senior housing complex, the development will be subject to Section 100-2 Housing and Urban Development (HUD) Minimum Property Standards and thus will include automatic temperature limit controls in the shower, electrical outlets for night lights between the bed and bathroom, handrails on at least one side of all interior corridors and an emergency call system in each unit. Additionally, 12 of the 206 total units at Lakeshore Manor will be designed as fully accessible, hearing-impaired units and will comply with the American with Disabilities Act (ADA) and Uniform Federal Accessibility Standards (UFAS) requirements. The property’s location in East Chicago makes it part of the city’s ongoing North Harbor Redevelopment Area project, an effort to improve public spaces including streets, playing fields, playground equipment and concert stages at Nunez and Callahan parks. With these proposed upgrades, and the new Lakeshore Manor housing development, the city hopes to provide major economic contributions that will support the long-term sustainability of the area. “Cinnaire has been changing lives and transforming neighborhoods in Indiana for more than 25 years,” said Keith Broadnax, Cinnaire Senior Vice President, Business Development. “We remain focused on creating housing opportunities to ensure seniors can live affordably in the communities they call home. Lakeshore Manor residents will enjoy living in the heart of the revitalization taking place in East Chicago. We’re proud to join our partners at Merchants Capital to make the vision of Lakeshore Manor a reality.” The new property is expected to debut in February 2024. To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, Twitter and LinkedIn and Instagram.