CARMEL, Ind. (June 15, 2020) – Mortgage banking company Merchants Capital has secured $25.9 million in Fannie Mae funding for a 476-unit multifamily affordable housing property in Joliet, Illinois. The Fannie Mae Cash Preservation loan was secured on behalf of the owners of Brinshore Development, The Richman Group and Eric Richelson.
Located at 947 Lois Place in Joliet, Illinois, Larkin Village operates under a tax credit program through the Illinois Housing Development Authority (IHDA). The IHDA requires that the property supplies 256 of the 476 units at or below 60% of the area median income (AMI). The other 220 units are unrestricted.
“Now more than ever, there is a need across our country for affordable housing properties that are safe, clean and available for our American workers,” said Merchants Capital Senior Vice President Randall Rogers Jr. “Securing the financing for a multifamily, affordable housing property such as Larkin Village supports Merchants Capital’s passion for providing these housing options nationwide.”
Merchants Capital was also instrumental in the structuring and underwriting of this transaction, facilitating the communications and documentation that led to the approval of a 10-year interest only period. Merchants Capital, Brinshore Development and The Richman Group were able to execute and close the loan remotely, due to the COVID-19 shelter-in-place order issued days before closing.
This transaction allowed the ownership team to retire IHDA debt, make useful repairs to the property, and redeploy the equity accumulated over many years of effective operations. The equity will be used to invest in other affordable housing projects either through new construction developments or renovations.
“The payoff of the IHDA loan marks the end of a success story. Larkin Village was one of only two foreclosure of multifamily loans which IHDA ever held. In 1999, IHDA selected the development team to rehabilitate, re-tenant and operate the failed affordable housing project,” said Brinshore Development Principal David Brint. “21 years later, Larkin Village is an important asset to the affordable housing stock in Will County, Illinois.”
An Equal Housing Opportunity, Larkin Village offers options for studio, one-, two- and three-bedroom apartments in its family friendly community. The property provides complimentary heat, cooking, gas, water, garbage and private satellite TV for each apartment.
Outdoor amenities include a swimming pool, community center, playground and clubhouse, along with numerous green areas and management on the premise. The community also supplies laundry facilities in each building with Cashless Smart Card washers and dryers for convenience.