Press Release

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.

CHICAGO – The Chicago office of Merchants Capital recently secured a $35.6 million construction loan on behalf of HomeRise for the rehabilitation of San Cristina, a historic 58-unit single room occupancy (SRO) rental property located in San Francisco, which provides housing and support services to formerly homeless residents. The construction loan was provided by Merchants Bank of Indiana (MBI) with participation by the AFL-CIO Housing Investment Trust (HIT). Originally constructed in 1913 as an office building, San Cristina was acquired in 1991 by HomeRise and converted into one of the earliest permanent supportive housing communities in San Francisco. Upon completion, San Cristina will continue to provide affordable housing to the formerly unhoused and improve residents’ quality of life through enhanced support services offered by HomeRise. “We are excited about the opportunity to restore our San Cristina housing to its historical glory. Our funding partnership with Merchants Capital is a vital part of our ability to continue to provide supported housing opportunities,” said Rick Aubry, CEO of HomeRise. San Cristina was one of 27 projects to receive a 2022 California Housing Accelerator Award which allocated $24.2 million to the project as part of the state’s comprehensive strategy to address housing affordability for the state’s lowest-income households. In addition to the award, the project also received funding from the California Department of Housing and Community Development Multifamily Housing Program, the Mayor’s Office of Housing and Community Development and the Federal Home Loan Bank of San Francisco’s Affordable Housing Program through Century Housing Corporation. “Our participation in the rehabilitation of the San Cristina property is part of the AFL-CIO Housing Investment Trust’s continuing commitment under its billion-dollar Bay Area Initiative launched in 2020,” said HIT CEO Chang Suh. “This infusion of capital creates union jobs and provides much-needed housing for people who are at risk and experiencing homelessness.” This investment by Merchants Capital and the AFL-CIO HIT marks the two firms’ second investment with HomeRise, after the recently completed Jazzie Collins Apartments located at 53 Colton Street in San Francisco’s Hub neighborhood. 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. – Merchants Capital is pleased to announce the closing of Merchants Capital Tax Credit Equity Fund X, L.P. (Merchants Fund X). Merchants Fund X represents the company’s second and largest national multi-investor fund with a total capital raise of $180 million from 15 institutional investors, including eight repeat and seven new investors. Merchants Fund X will infuse equity into 18 affordable housing properties that will create or preserve more than 2,400 affordable homes in 12 states. The 18 properties included in Merchants Fund X are in California, Texas, North Carolina, Connecticut, Missouri, Indiana, Ohio, Michigan, Illinois, Pennsylvania, Mississippi and Oregon. 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. – Leading financial services provider Merchants Capital today announces the completion of the rehabilitation of a federal Low-Income Housing Tax Credit (LIHTC) project located in Houston, Texas, known as Knolls at West Oaks Apartments, by prominent affordable housing developer, Dominium. Merchants Capital provided $10.8 million in tax credit equity in exchange for the LIHTC. It also originated debt financing for the project under its Government-Sponsored Enterprise (GSE) license. The comprehensive financing package offered by Merchants supported the acquisition, rehabilitation and re-syndication of the residential development, which is an existing, income restricted, LIHTC property originally constructed in 2003. Set within a larger mixed-use neighborhood with commercial, residential and educational spaces, Knolls at West Oaks consists of 168 total units (84 two-bedroom and 84 three-bedroom floor plans). All units are restricted to individuals earning no greater than 60% of the area median income (AMI). For the project financing, Merchants Capital originated and will service a Freddie Mac tax exempt loan, a Merchants Bank of Indiana equity bridge loan and a 4% LIHTC equity investment. The renovation included an extensive remodel of the existing clubhouse, a new fitness center and supportive services room, the construction of a new bus stop, installation of a new playground and the addition of a new pavilion and grilling area. Resident units will receive new appliances, quartz countertops, flooring, low-flow plumbing fixtures, a full cabinet replacement and energy-efficient light fixtures. As part of the renovation, all units were modified to meet current accessibility standards. Five units were converted into ADA units, and an additional four units were modified into audio-visual impaired units, for a total of nine ADA-compliant units. “We appreciate the partnership and collaboration from Merchants Capital on this rehabilitation that keeps 168 affordable apartment homes in the Houston area,” said Neal M. Route, Vice President and Project Partner at Dominium, the property developer. Rehabilitation began in August 2021 and was completed in September 2022. Merchants Capital extends their sincere congratulations for the successful completion of the project. To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, Twitter, LinkedIn and Instagram.