Mortgage banking company Merchants Capital has established a tax credit syndication platform, a new business unit that infuses private equity from institutional investors into Low Income Housing Tax Credit multifamily housing projects. This launch reflects Merchants Capital’s transformation into a full-service financing provider for affordable housing.
The new platform reinforces Merchants Capital’s proven leadership in multifamily finance, as the company has long been an advocate for utilizing market-leading financing solutions to provide affordable housing that improves quality of life.
“We are doubling down our commitment to affordable housing,” said Michael R. Dury, Merchants Capital President and CEO. “Leveraging the bank’s balance sheet, along with Merchants Capital’s agency permanent debt financing through HUD, Fannie Mae and Freddie Mac, the equity platform is a true synergy for the business. Merchants Bank has grown to nearly $10 billion in assets, which allows us to buy and hold equity investments and provide upper tier bridge financing to our funds.”
Julie Sharp will lead the platform as Senior Vice President of Tax Credit Equity Syndications. Sharp joined Merchants Capital from one of the nation’s largest tax credit equity syndicators where she was involved in raising capital and structuring and closing upper tier investments valued at more than $1 billion through private placements, multi-investor funds and secondary activity through the Syndications and Investor Relations platform.
“This is an exciting time at Merchants Capital. The future of the tax credit equity syndication industry requires a fully integrated platform, and no one can execute that better than Merchants Capital,” Sharp said.
The tax credit syndication platform has already closed its first fund, a unique project that allowed Merchants Capital to partner with Merchants Bank and four other community banks to provide $22 million in equity to support affordable housing in the state of Indiana. The fund’s investment supported seven affordable housing projects in Indianapolis, Gary and South Bend, totaling more than 1,100 units. Merchants Capital also completed the debt financing for all seven properties.
“Closing our first fund was a huge milestone and proof of concept. This collaboration aligned the interests of the property owners, syndicator, investors and debt servicers for a long-term partnership,” said Sharp.
“It was rewarding to partner with five institutional investors to make a difference for the local areas in which we live and work, in the state where we are headquartered as a company,” said Michael F. Petrie, Merchants Bancorp Co-Founder, Chairman and CEO. “We are always happy to make a difference for families in our communities.”
To learn more about the new platform, visit www.merchantscapital.com/tax-credit-equity. To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, Twitter, LinkedIn and Instagram.