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.”