Tax Credit Equity

CARMEL, Ind. (April 10, 2023) – Leading financial services provider Merchants Capital today announced that it has expanded its executive leadership team with the promotion of Chris Messmann to Executive Vice President. He oversees the tax credit equity division’s asset management, fund and risk management teams, including pre-closing financial projections and post-closing investor reporting.   Messmann contributed to the extensive growth of Merchants’ tax credit equity platform, which boasts more than $1.4 billion of equity under management in its third year of operation and is now a nationally ranked syndicator working with top developer and investor partners nationwide.        “We are extremely fortunate to count Chris among our executive team and congratulate him on this well-earned promotion,” said Julie Sharp, Executive Vice President of Tax Credit Equity at Merchants Capital. “His leadership has been invaluable during the past three years and his promotion is a direct reflection on the investments we are making in our team, systems and processes that will enable us to serve our investor and developer clients for decades to come.” Messmann joined Merchants Capital in 2021, having served in a leadership role for 10 years at a national tax credit equity syndicator. Prior to that, Messmann was a tax accountant at Dauby O’Connor and Zaleski, one of the largest Low Income Housing Tax Credit (LIHTC) accounting firms in the United States. “Our team is achieving remarkable success in the tax credit equity space, reflecting strongly on our innovative platform and dedicated team of professionals,” said Messmann. “I’m honored to join the executive team that is driving our strategic growth.” To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, X, LinkedIn and Instagram.

CARMEL, Ind. (Jan. 19, 2024) – Merchants Capital today announced large capital raises, including $506.7 million in fund investments closed across the firm’s multi-investor, proprietary and state credit offerings for the year ended Dec. 31, 2023. The firm raised an additional $365 million in tax credit equity in January 2024. The firm’s capital raise, which has surpassed $1.4 billion since the platform launched in 2021, comprises $725 million in multi-investor offerings, $26 million in state credit syndications and $664 million in proprietary fund investments. In December 2023, the firm closed Merchants Capital Tax Credit Equity Fund 16, LLC, a $160 million multi-investor fund with 12 bank investors, including three new investors. In January 2024, the firm closed Merchants Capital Tax Credit Equity Fund 14, L.P., its largest ever fund capital raise at $263 million with a large institutional investor. “Successfully raising $1.4 billion in tax credit equity since launching our platform three years ago is a remarkable achievement—it sets Merchants Capital apart from other new entrants in the tax credit equity syndication space,” said Julie Sharp, Executive Vice President at Merchants Capital. “Our success is a testament to our team, the support of our investor and developer partners and the innovative platform we have built across all business lines at Merchants Capital,” said Linda Hill, Executive Vice President at Merchants Capital. The announcement of record-breaking results in the tax credit equity division follows Merchants Capital’s recognition by Affordable Housing Finance as the #2 largest lender for affordable housing in the United States. “It has been extremely rewarding to build out an equity originations platform in a firm that offers industry-leading debt products and balance sheet solutions for affordable housing developers,” said Josh Reed, Executive Vice President of Acquisitions at Merchants Capital. “We are grateful to our developer and investor partners, who make our success possible.” Merchants Capital’s asset management portfolio includes tax credit equity investments in more than 13,000 affordable homes in 23 states. “Our remarkable production results reflect strongly on the capabilities and investments we have made in our asset, fund and risk management team of professionals who are steadfast in their dedication to our investor and developer partners,” said Chris Messmann, Executive Vice President of Syndications and Tax at Merchants Capital. To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, X, LinkedIn and Instagram.

CARMEL, Ind. (Nov. 27, 2023) – Leading financial services provider Merchants Capital today announced it has secured $17.4 million in Low-Income Housing Tax Credit (LIHTC) equity financing for the new construction of Reserve on Park Place, an affordable senior property in Fort Wayne, Indiana. The property will bring 187 age- and income-restricted units to a high-demand area for affordable housing. "This project is emblematic of Merchants’ collaborative, full-service approach and commitment to affordable housing,” said Ben Trussell, Vice President of Acquisitions at Merchants Capital. “We are proud to provide a range of financing sources that support affordable housing development, particularly in closing funding gaps. We deeply value our partnership with Brown Capital Group, Leo Brown Group and Rogers Development Group." Developers Brown Capital Group, Leo Brown Group and Rogers Development Group bring significant multifamily and senior housing experience to Reserve on Park Place. Restricted to seniors aged 55 and older, the three-story low-rise property comprises 15 studio units, 136 one-bedroom units and 36 two-bedroom units limited to residents earning 40%, 60% and 80% of the area median income (AMI). The units are designed to support senior and special needs, with amenities that include handrails, grab bars, intercoms, limited access and video surveillance. “Given the numerous challenges amidst development projects, specifically in the affordable housing sector, Merchants Capital was an anchor in an unpredictable financing environment,” said Jarod Brown, CEO of Brown Capital Group. “We are delighted to bring affordable housing to an area which has such a high concentration of jobs for our future residents.” Reserve on Park Place will sit in a neighborhood among single-family and multi-family homes, with easy access to restaurants, hotels, a grocery store, a pharmacy and local businesses along State Route 1. Construction is expected to be completed in April 2025. To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, X, LinkedIn and Instagram. Reserve on Park Place image courtesy of R3B Architecture.

CARMEL, Ind. (July 20, 2023) – Merchants Capital is pleased to announce the closing of Merchants Capital Tax Credit Equity Fund 15, L.P. (Merchants Fund 15). Merchants Fund 15 represents the company’s largest and most diverse national fund with a total capital raise of $196.5 million from 14 institutional investors, including 10 repeat and four new investors. Merchants Fund 15 will infuse equity into 19 affordable housing properties that will create or preserve more than 2,300 affordable homes in 13 states. “The successful closing of Merchants Fund 15 would not be possible without the unwavering support from an extraordinary partnership of developers, investors and the Merchants team, and our shared commitment to address the critical need for affordable housing across the United States,” said Ryan Thompson, Vice President of Syndications and Investor Relations at Merchants Capital. “Since launching our national equity platform in 2021, Merchants Capital has raised more than $800 million in tax credit equity and originated over $15 billion in debt to support multifamily housing across the United States,” said Julie Sharp, Executive Vice President of Merchants Capital. “This remarkable achievement has solidified Merchants Capital as an industry leader in affordable housing finance and is a testament to the strength of our team, the steadfast support of our investor and developer partners and the innovative platform we have built.” The closing of Merchants Fund 15 comes on the heels of Merchants Capital’s recent recognition by Affordable Housing Finance as the #2 largest lender for affordable housing in the United States. “We are proud to be at the forefront of affordable housing finance,” said Linda Hill, Executive Vice President at Merchants Capital. “We are incredibly grateful to the team that made this possible and the investors and developers who have entrusted us with the financing for key affordable housing projects throughout the United States.” The 19 properties included in Merchants Fund 15 are located in Minnesota, Indiana, Ohio, Florida, Texas, Wisconsin, Michigan, North Carolina, Illinois, Pennsylvania, Kentucky, Colorado and California. 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 (July 6, 2023) – The New York office of leading financial services provider Merchants Capital today announces it has secured $11 million in debt and Low-Income Housing Tax Credit (LIHTC) equity financing for the construction of Cedarwood Homes in Pittsburgh, marking the firm’s continued expansion into new markets. The new-build property will bring 46 age- and income-restricted units to Fairywood, one of Pittsburgh’s most western neighborhoods. Together, Merchants Capital’s debt and equity teams secured an $11 million construction and equity bridge loan on behalf of the property developer, Tryko Partners. The funds will provide tax credit equity bridge financing to support construction development costs. “Securing the financing for this property represents a significant milestone for us at Merchants Capital,” said William Jones, Senior Vice President with Merchants Capital. “Since launching our tax credit syndication platform in 2021, we have been searching for projects that allow us to exercise our talents as a full-service lender. Cedarwood Homes granted us that opportunity, and it is also the first LIHTC-financed, senior affordable property in Pittsburgh’s West End in history. We are honored to have worked alongside several of the city’s top housing agencies on such an important property for the people of Pittsburgh.” Situated at the intersection of Broadhead Fording Road and Village Road, and at the former grounds of the Fairywood School, Cedarwood Homes will feature 46 one-bedroom apartments across 12 one-story buildings. Each unit will host a private, ground-floor entrance. In-unit amenities include a washer and dryer and modern, vinyl plank flooring. The property will also feature a community building with management offices, as well as a fitness center, meeting area, kitchen and multi-purpose space reserved for residents. All units at Cedarwood Homes will be age-restricted to individuals 62 years of age and older. Within the 46 total units, 39 units will be income-restricted, with five units reserved for residents earning 20% of the area median income (AMI), 19 for those earning 50% AMI and 15 for those earning 60% AMI. The remaining seven units will be offered at market rate. Merchants Capital was proud to work alongside Tryko Partners and together with Urban Redevelopment Authority of Pittsburgh (URA), Housing Authority of the City of Pittsburgh (HACP) and Pennsylvania Housing Finance Agency (PHFA). “The Cedarwood Homes housing development marks a milestone for the Fairywood neighborhood and its residents,” said Susheela Nemani Stanger, Executive Director of the URA. “After the neighborhood has experienced years of disinvestment, the URA seeks to set things right by beginning a new phase of development and reinvestment into this community. This starts by providing affordable and livable housing to its senior population. We want to thank Tryko Partners, Merchants Capital, HACP, PHFA and all other involved parties that made this project possible.” "We're proud to be working with Merchants Capital, the URA and PHFA to bring sorely needed affordable, senior citizen housing to the West End," said Caster D. Binion, HACP Executive Director. "Funding from HACP's Project Based Voucher/ Gap Financing program is supporting innovative affordable housing developments like Cedarwood Homes in neighborhoods throughout the city, as we continue to use every tool at our discretion in order to meet the growing demand for affordable housing."  Upon completion of construction, Cedarwood Homes will certify to the 2020 Enterprise Green Communities criteria and the U.S. Department of Energy’s (DOE) Zero Energy Ready Home Program, which indicates the units will be designed and built at a high performance to ensure maximum energy efficiency and savings. The property is set to debut Spring 2024. To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, Twitter, LinkedIn and Instagram. Property rendering courtesy of Tryko Partners.

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.

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. – Merchants Capital today announces the promotion of Julie Sharp and Linda Hill to Executive Vice Presidents. Sharp and Hill lead Merchants’ tax credit equity division and previously served as Senior Vice Presidents. Since launching the division in late 2020, Sharp and Hill have overseen the creation of a robust equity platform with unprecedented growth. In its first full year, the team successfully completed an equity raise of more than $248.3 million in both proprietary and multi-investor funds that will create or preserve more than 3,200 units in 13 states. Sharp joined Merchants in 2020 after serving at one of the nation’s largest tax credit equity syndicators where she was involved in raising capital and structuring fund investments valued at more than $1 billion across the U.S. In 2021, she was appointed to the Board of Directors for the Affordable Housing Tax Credit Coalition (AHTCC), a national advocacy group based in Washington, D.C. and is also a board member for the Indiana chapter of the Women’s Affordable Housing Network. Hill is an accomplished and recognized leader in the industry with a career spanning more than 25 years at two of the nation’s top syndicators and investment platforms. She joined Merchants in April 2021 and is responsible for managing equity relationships with top affordable housing sponsors across the country. 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 announced today the closing of two tax credit equity funds totaling more than $233.4 million. Merchants Capital Tax Credit Equity Fund V, L.P. (Merchants Fund V) represents the company’s first national multi-investor fund with a total capital raise of $172.5 million from 16 institutional investors, including both banks and insurance companies. Merchants Fund V will infuse equity into 18 affordable housing properties that will create or preserve more than 1,958 affordable homes in 11 states. Merchants Capital further announces the closing of Merchants Capital SW Tax Credit Equity Fund III, L.P. (Merchants Fund III), a $60.9 million proprietary fund with a Fortune 500 company that will provide equity capital into eight affordable housing projects structured with Low-Income Housing and Historic Rehabilitation Tax Credits in three states. The investment in Merchants III will create 593 affordable homes in three states and revitalize historically significant housing properties in San Antonio and Kansas City. “The successful closing of Merchants Fund V and III, with more than $233.4 million in capital raised from 17 investors, is a milestone achievement for our affordable housing equity platform,” said Julie Sharp, Executive Vice President of Tax Credit Equity at Merchants Capital. “With more than $22 billion in capital provided to multifamily housing since inception, our company has emerged as a leading debt and equity provider for affordable housing across the United States.” Merchants Capital’s national multi-investor fund, Merchants Fund V, was designed to make a large social impact. The fund is structured with an innovative and first-of-its-kind Social Impact Reserve that is projected to deploy nearly $500,000 in capital to support tenants over the life of the fund. The developer sponsors also include some of the largest affordable housing owner/operators in the nation. “We are grateful to our developer and investor partners for their partnership,” said Linda Hill, Senior Vice President of Tax Credit Equity at Merchants Capital. “The successful closing of Merchants Funds V and III is a testament to the strength of our relationships and innovative platform we have built.” The 25 properties included in Merchants Funds III and V are in Indiana, Minnesota, North Carolina, Ohio, South Carolina, Michigan, Texas, Kentucky, Tennessee, Wisconsin, Missouri and California. 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 proud to announce that Julie Sharp, Senior Vice President of Tax Credit Equity, has been appointed to the Affordable Housing Tax Credit Coalition (AHTCC) Board of Directors. Sharp’s appointment became official in early July. The Affordable Housing Tax Credit Coalition is a leading industry trade organization and advocacy group based in Washington, D.C., focused on advocating on behalf of the Housing Credit to finance affordable housing in the United States. Founded in 1988, the AHTCC seeks to preserve, expand and improve the Housing Credit through legislative and regulatory outreach and education. Sharp joined Merchants Capital in March 2020. Under her leadership, Merchants has expanded its service offerings to include a robust tax credit equity platform, allowing the company to serve as a full-service financing provider for affordable housing. “I am honored to represent Merchants Capital on the AHTCC Board of Directors,” Sharp said. “In a time of unprecedented demand for safe, quality affordable housing in our country, I am eager to join the AHTCC board in our support for the Housing Credit as one of the most successful public-private partnerships in our nation’s history that has directly produced more than 3.5 million affordable homes since inception.” As part of the AHTCC Board of Directors, Sharp will serve as an advocate for the Housing Credit on a national stage. She joins a prestigious group, serving alongside some of the country’s top real estate and affordable housing industry professionals. Sharp is also a board member for the Indiana chapter of the Women’s Affordable Housing Network. To learn more about the tax credit equity syndication platform, click here. To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, Twitter, LinkedIn and Instagram.