CARMEL, Ind. – Financial services company Merchants Capital announces today it has secured a $35 million construction loan for Union at the Loop, an affordable, multifamily housing community coming to Lawrence, Kansas. Merchants Capital also acted as servicer for the $22.25 million Freddie Mac Tax Exempt Loan (TEL) forward permanent commitment.
Union at the Loop, developed by The Annex Group, will be located at 3250 Michigan St. as the city’s newest affordable, 4% Low-Income Housing Tax Credit (LIHTC) property. The 248-unit property will house one-, two- and three-bedroom apartments for residents who earn up to 60% of the area median income (AMI), or an annual income of $35,800 to $57,300.
“Due to Merchants Capital’s multi-layered debt products, we were able to offer and successfully secure construction and permanent financing for Union at the Loop. We are excited to partner with The Annex Group on this project that will provide much needed affordable housing options to the workforce families of Lawrence,” said Brian Emmons, Senior Vice President, Loan Operations for Merchants Capital.
Notable amenities will include a business center and clubhouse, a fitness center, exterior storage, onsite management, picnic areas, a playground, video surveillance, walk-in closets and washer and dryers. The complex will be conveniently located to public transportation, grocery stores and restaurants.
“When we started looking at the Lawrence area, we saw that almost all existing affordable housing communities had a wait-list of residents hoping to move-in,” said Kyle Bach, CEO of The Annex Group. “Because of the student population at The University of Kansas, there are both typical residents and university students in the rental market, causing a strain. We wanted to ease the need for affordable housing with a community that will feel like home to residents looking for conveniences, amenities and affordability.”
Construction began in August 2021, and the property is expected to be open in October 2022.