Multifamily Finance

CARMEL, Ind. – Mortgage banking company Merchants Capital today announces that it provided approximately $4.7 billion in financing in 2020, nearly half of which was dedicated to supporting affordable housing preservation and development across the country. This achievement marks a historic company milestone, as Merchants Capital’s total year-over-year production saw an increase of 106%. While its Federal Housing Administration (FHA) lending volume remained steady, the company’s Government-Sponsored Enterprise (GSE) production through Fannie Mae and Freddie Mac increased 104%, demonstrating the evolution and expansion of Merchants’ GSE platform. “We are hyper-focused on advancing our national footprint through continuous strategic investments in our construction, equity and debt platforms,” said Dwayne George, Executive Vice President and National Head of Production at Merchants Capital. “We are confident that we can continue to succeed because we have a team of dynamic individuals driven to be the best capital advisors in the business. At a time when many of us haven’t seen each other in more than a year due to COVID-19, our entire staff has remained optimistic and ambitious. Everyone at Merchants Capital has done a remarkable job of helping us achieve a record year.” Merchants Capital’s bridge loan product experienced an increase of more than 100% in 2020, proving Merchants’ overall resilience and ability to execute even amid the pandemic when many other banks and lenders were pulling out of the market. “I want to send my congratulations to the entire Merchants Capital team, and especially to Dwayne George, whose addition to Merchants in 2020 as head of production made a big impact on our success,” said Michael R. Dury, President and CEO of Merchants Capital. “I must also send a much-deserved thank you to every single one of our valued clients, whose partnership and trust in us for their financing needs is sincerely appreciated.” To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, Twitter, LinkedIn and Instagram.

CHICAGO – The Chicago office of Merchants Capital, established in early 2019, today announces its first new construction/mini-perm loan through Merchants Bank of Indiana, Merchants Capital’s parent company. The multifamily property, River Grove Station, is located in the Chicago suburb of River Grove. The property fits into Merchants Bank’s loan parameters – a shovel-ready deal with a strong developer at a transit-oriented location. Once constructed, the 80-unit property will provide modern luxury and transit-oriented living adjacent to the River Grove Metra Station and within walking distance of nearby restaurants, shopping centers and entertainment venues. Located just northwest of Chicago, River Grove is increasingly attractive to families and young professionals who appreciate the village’s mix of urban amenities in a suburban setting, as well as its easy access to Chicago and nearby O’Hare International Airport. As noted by River Grove Mayor David Guerin, this project will “fundamentally change the face of this section of our downtown” and replace “the view of dilapidated structures” in the area. Merchants Capital Executive Vice President Lee Oller and Senior Vice President Susan Schnoll, the two co-originators on the River Grove Station project, are veteran construction lenders, having over 25 years of experience originating and closing loans under the HUD 221 D4 new construction/substantial rehabilitation program. “For the Merchants Capital Chicago office, this deal is especially exciting, as it is the first Merchants Bank of Indiana construction loan we’ve closed. This development is also the perfect candidate for HUD or GSE takeout financing, which is Merchants Capital’s specialty,” said Oller, who heads up the Chicago office. “We provided an impressive processing timeline from start to finish, which allowed MB Thatcher LLC to begin construction on River Grove Station in a location that is starved for development and often overlooked by developers.” The project is also supported by tax increment financing (TIF) from the Village of River Grove.  These TIF funds will help clean up these environmentally challenged sites and make the development of this new multifamily project feasible. Once the site was approved for TIF financing, the Village approached MB Thatcher LLC, the client, to be the developer due to the quality of other, recently completed projects in the area and their local market knowledge. The development team includes Noah Properties and Environmental Protection Industries (EPI). “We are pleased to expand our multifamily portfolio in River Grove and look forward to bringing in additional new units at this project across the street from the River Grove Metra stop,” said Michael Musa, president and CEO of EPI. “It is our goal to provide affordable modern luxury apartments for the residents of River Grove, with this being our third project in the same general vicinity completed within the last three years.” “This project was brought to us by the officials of River Grove and we completed the site cleanup and the dramatic renovation of the street and streetscape per the request of the village staff and Mayor David Guerin,” said Ben Kadish, president of Maverick Commercial Mortgage Inc., who represented developer MB Thatcher LLC. Located at 2801 Thatcher Avenue, the River Grove Station residences will offer energy efficient one and two-bedroom luxury rental apartments with well-conceived floor plans and attractive finishes selected by skilled designers at Lisek Interiors. The units also feature oversized windows and high ceilings. Construction is expected to complete in mid-2021. 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. – Mortgage banking company Merchants Capital today announces the hiring of Denise Gomez Oluwo as Senior Vice President of Government-Sponsored Enterprise (GSE) Underwriting. With more than 15 years of experience from multiple top GSE lenders, Gomez Oluwo is a recognized industry leader with expertise in underwriting, agency-lending product types, credit risk analysis, financial modeling and operating lending organizations successfully. Prior to joining Merchants Capital, Gomez Oluwo most recently served as Vice President, Deputy Chief Underwriter for Walker & Dunlop. In this role, she managed a team of nine underwriters and analysts, providing credit review on over 100 closed Fannie Mae Small Loan and Freddie Mac SBL transactions in 2020. Additionally, she trained and oversaw a contract underwriting team to assist with excess underwriting volume and lead corporate objectives to retain high scores for annual Fannie Mae and Freddie Mac performance reviews. In her new role at Merchants Capital, Gomez Oluwo will work alongside the current GSE underwriting team to underwrite loans, lead departmental objectives, cultivate client and GSE partner relations and further develop talent on the Merchants underwriting team. Currently, she is working remotely from her home in Maryland. “The executive leadership at Merchants is excited to welcome a talent of Denise’s caliber to our Senior leadership team,” said Dwayne George, Executive Vice President and National Head of Production at Merchants Capital. “Denise brings a wealth of knowledge and experience to the GSE platform, but also humbly maintains a deep commitment to active leadership with her team. Denise will be a valuable asset to our company as we continue to grow and execute our strategic business plan.” In addition to her role at Walker & Dunlop, Gomez Oluwo also served as Vice President of Underwriting for Newmark Knight Frank (formerly Berkeley Point Capital). With her team, Gomez Oluwo closed more than 90 transactions totaling $1.6 billion in 2018. She was noted as a company Subject Matter Expert for Fannie Mae’s Green program, as well as the designated underwriting lead on all agency production for several high-profile clients. Gomez Oluwo also previously held positions at Deutsche Bank Berkshire Mortgage and Greystone Servicing Corporation, negotiating and closing over $300 million and $120 million of multifamily mortgage loans respectively. Gomez Oluwo is a graduate of Smith College with a bachelor’s degree in economics. She also holds a master’s of business administration with a concentration in finance from George Washington University. 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 – Mortgage banking company Merchants Capital today announces the closing of a $51 million construction loan and a $28.4 million Freddie Mac 9% Low-Income Housing Tax Credit (LIHTC) Cash Unfunded Forward Commitment to fund a new affordable housing project in Manhattan’s Upper West Side. The total $80 million funds for the project, located in the historic Park 79 Hotel, comprises the largest 9% LIHTC allocation in New York City. Renovations to the original hotel, which first debuted in 1899 as “The Indiana,” will create 77 deeply affordable residences for very-low income seniors in the heart of Manhattan. Under an agreement with the New York City Department of Housing Preservation and Development (HPD), the property will remain affordable for at least 60 years. “Redeveloping the Park 79 Hotel and structuring affordable apartments for senior residents in Manhattan is a commendable task, and we at Merchants Capital are thrilled to have worked as a partner on this project, especially with the borrower, Fairstead,” said Mathew Wambua, vice chairman and head of agency lending at Merchants Capital. “We as a company are committed to providing accessible and affordable housing options across the country, and this project is the epitome of that commitment.” Fairstead, the project developer, will oversee renovations, reconfiguring the seven-story building into 77 apartments along with multiple community spaces, including an indoor/outdoor community room, dining room and meeting rooms. Additional rehabilitation will be done throughout the building, including new elevator service, creation of a common dining and recreation room, social services offices and an outdoor garden area. Upon completion, the property will employ two full-time social service coordinators to work alongside residents in organizing community programming events. The building will also have a full-time attendant serving residents as a lobby concierge. “The partnership and commitment from Fairstead and the New York City Department of Housing Preservation and Development (HPD) has brought this meaningful affordable housing redevelopment to life,” said Michael Milazzo, vice president of loan originations at Merchants Capital. “This project will provide New York City’s senior residents with the quality housing and services they deserve. A special thank you is in order to HPD – for pushing forward under the most adverse of conditions to get this project closed in a timely manner. We also want to thank Will Blodgett of Fairstead for the company’s dedication to housing for all.” Redevelopment of the Park 79 Hotel creates affordable housing in an extremely desirable location of New York City, where affordability and accessibility is traditionally hard to find. Located steps away from Central Park, the project will allow Manhattan’s low-income seniors to continue residing in their home neighborhood without having to look for affordable housing outside of the city limits. “At a moment when the need for high-quality affordable housing for New York’s seniors couldn’t be more urgent, we are beyond proud to break ground on creating 77 deeply affordable residences for seniors right in the heart of the Upper West Side, and grateful to Merchants Capital for its partnership” said Will Blodgett, founding partner of Fairstead. “We pride ourselves in creating and preserving high-quality affordable housing in high-opportunity areas, and it’s so gratifying to provide these homes for seniors just steps from Central Park, the Museum of Natural History and the JCC. The revamped building will have great amenities for residents – but the neighborhood itself will really be its greatest amenity.” Renovation on the original hotel is expected to be completed in 2022. To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, Twitter and LinkedIn and Instagram.

NEW YORK (July 14, 2020) – Mortgage banking company Merchants Capital today announces the hiring of Dwayne George as Executive Vice President, National Head of Production. With 15 years of diverse multifamily production and management experience, George is recognized as an adept problem solver with proven success in multifamily production and sales team management, as well as originating and underwriting Government-Sponsored Enterprise (GSE) executions. George previously held positions at Greystone and Northmarq, but most recently, at Freddie Mac as Senior Director of Target Affordable Housing Production where he managed the Freddie Mac Optigo® Lender Network – a platform that consists of 19 lenders that is responsible for originating $6 billion of annual affordable housing production. Prior to joining the production team, George served as a Senior Underwriter in Freddie Mac’s Target Affordable Housing Group, where he was responsible for obtaining and granting credit approvals for LIHTC Preservation, Section 8, Bond Credit Enhancements, Moderate Rehabilitations, and Extended Use loans totaling $300-$400 million in annual production. During his first three years at Freddie, he orchestrated the purchase of $920 million in Freddie Mac Target Affordable originations, which included the firm’s largest Target Affordable Housing Capital Markets Execution (CME) transaction, the first Short Term Bond Execution, and the first Rental Assistance Demonstration (RAD) conversion. In his new role at Merchants Capital, George’s primary responsibility is to lead the company’s sales team, where he will be working closely with Merchants’ sales office leads in New York, Minneapolis-Saint Paul, Indianapolis and Chicago. He will spend the majority of his time traveling and meeting with loan originators and customers, training existing sales personnel, managing the sales process closely, and recruiting for and growing new offices. “We are thrilled to welcome Dwayne George, a proven leader and mortgage banking executive, to our growing team,” said Michael R. Dury, President and CEO of Merchants Capital. “As we continue to grow our sales team across the country, it was essential to give them support through sales and product training, but most importantly, provide them with best in class leadership to help grow their respective businesses. Many of our team members already had a strong relationship with Dwayne during his time at Freddie Mac, which I believe will allow for a smooth transition and allow him to hit the ground running. I am excited for our customers to meet Dwayne and be able to benefit from his thoughtfulness and creativity as he accesses our creative balance sheet products combined with our expertise with the GSEs and Federal Housing Administration (FHA).” George is a graduate of Goucher College with a Bachelor of Arts degree in Business Management. He also holds a master’s degree in Real Estate from Georgetown University. “My experience in the private sector and at Freddie Mac has fueled my pursuit of providing a dynamic approach to multifamily finance with a hyper-focus on the customer experience,” George said. “The team at Merchants shares my vision to effectively and efficiently expand the firm’s national affordable multifamily housing presence in the market. I’m excited to play an active role in advancing Merchants Capital’s commitment to continued excellence.”

CARMEL, Ind. – Mortgage banking company Merchants Capital today announces that it has provided a three-year bridge loan for Centennial Aspen, a 148-unit workforce housing complex located in Aspen, Colorado. The acquisition of the project is financed through Merchants Bank of Indiana (MBI) on behalf of Birge & Held Asset Management, which currently owns and manages over 11,000 apartment units across the country, with offices in Indianapolis, Ind. and Denver, Colo. Merchants Capital Corp. intends to further provide long-term, permanent financing for the project either through Fannie Mae or Freddie Mac’s preservation platforms or through a syndication of new tax credits via Fannie, Freddie or HUD. Located at the base of Smugger Mountain at 100 Luke Short Ct., Centennial Aspen was built in 1986 and designed by world-renowned architect Moshe Safdie. The property was built with a Land Use Restriction Agreement (LURA) that required 100% of the rental units to be used for workforce housing. In Aspen, Colorado, the average household and median income are both higher than the state of Colorado as a whole. This creates an environment where the cost of living is higher in this area than others in the state, contributing to higher housing costs. Under the LURA, Centennial Aspen’s units are rented to residents with incomes ranging from 50% to 120% of the area’s median income (AMI). “Centennial Aspen serves true workforce residents who might otherwise be unable to live in a high-cost city such as Aspen,” said Merchants Capital Vice President Eddie Dietrick. “We’re honored to provide this bridge loan which furthers our mission of providing high quality, affordable housing options across the country in critical job centers.” The 11-building, three-story multifamily property features studio, one, two- and three-bedroom apartments. Apartment amenities include exterior entrances, an exterior storage unit and electric heat, while community amenities include an onsite laundry facility and office, a playground and assigned parking spaces. “Birge & Held is very excited about the acquisition of Centennial Apartments, as it is a perfect match with our workforce housing portfolio in one of the most unique markets in the country,” said Birge & Held President and Co-Owner Andrew Held. “Merchants Capital has been a great partner of ours for decades, and understands the need for supporting affordable housing in markets like Aspen.” The workforce housing option is conveniently located near local grocery stores, pharmacies and ski resort options, and residents can take a 15-minute walk or utilize the free RFTA bus to travel into downtown. To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, Twitter, Instagram and LinkedIn.

NEW YORK – Mortgage banking company Merchants Capital has secured $35.4 million in agency funding for a 133-unit multifamily transitional housing facility located on Jamaica Avenue in the Queens neighborhood of New York City. The project – known as Jamaica Apartments – is at the forefront of New York City’s asserted strategy for contending with and eradicating homelessness. The seven-year agency funding and immediate Freddie Mac Optigo® Targeted Affordable Housing Capital Markets Execution (TAH-CME) cash loan was secured on behalf of Freddie Mac and Bayrock Capital. This transaction represented another opportunity for Merchants Capital and Freddie Mac to establish themselves as a key counterparty and partner in financing multifamily shelters that serve New York City’s homeless population. In 2019, Freddie Mac and Merchants Capital worked together to provide $51 million in agency funding for another transitional housing facility, 267 Rogers. “A project of this magnitude and significance, especially during the COVID-19 crisis, is needed now more than ever,” said Merchants Capital Vice President Michael Milazzo. “The Right to Shelter obligation, which provides safe, multifamily housing with no required tenant contributions for homeless New Yorkers, is crucial as many Americans are out of work or otherwise struggling financially throughout these unprecedented times.” All residents of Jamaica Apartments are given access to social services and mental health counseling, as well as education and career training to help them get back on their feet. Each unit has its own private bathroom and kitchen. The two-building property was effectively built as a 133-unit multifamily development that partnered with the New York City Department of Homeless Services (DHS) to offer transitional housing to homeless families. The entire property offers truly affordable housing, as 100% of the units are reserved for transitional housing. In April 2016, New York City Mayor Bill de Blasio announced a major restructuring of the way homeless services in New York City are delivered. The city plans to open approximately 20 new multifamily transitional housing shelters annually over the next five years to reach its goal of opening approximately 90 new shelters. Jamaica Apartments represents one of the multifamily transitional housing shelters that New York City is utilizing to eradicate homelessness in the future. Others involved in the project include CORE, a community-based, non-profit human services organization whose mission is to empower individuals, families and communities to live productive lives, and Brook Hollow Capital, a boutique mortgage brokerage based in Mahwah, New Jersey, which helped to manage the closing process. To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, Twitter and LinkedIn.

NEW YORK – Mortgage banking company, Merchants Capital, has provided $375 million in financing on behalf of a joint venture between Omni New York LLC (“Omni”), The Arker Companies (“Arker”), Dabar Development Partners (“Dabar”), and Bedford Stuyvesant Restoration Corporation (“Restoration”) to purchase and complete major renovations for more than 2,600 units scattered across nine Brooklyn developments, referred to as the NYCHA Brooklyn Megabundle (“PACT Brooklyn Bundle II”). In 2018, the Mayor’s Office and the New York City Housing Authority (“NYCHA”) released NYCHA 2.0, a comprehensive 10-year, $24.4BB plan to preserve NYC’s public housing, through capital investments which ensure residents have the safe, quality, and affordable homes they deserve. The cornerstone of NYCHA 2.0 is NYCHA’s Permanent Affordability Commitment Together (“PACT”) Preservation Initiative. PACT focuses on leveraging HUD’s Rental Assistance Demonstration Program (“RAD”), as well as other Section 8 programs, to marshal private debt and equity investment in NYC’s public housing stock. PACT Brooklyn Bundle II consists of a nine-development portfolio, with 2,625 units, located across Brooklyn. As part of its PACT Initiative, NYCHA issued an RFP for qualified applicants to finance, rehab, and manage this portfolio, which represents the largest preservation transaction executed to date under NYCHA’s PACT Initiative. The joint venture partnership between Omni, Arker, Dabar and Restoration was selected as the recipient of this RFP. The highly structured financing, crafted by the New York City Housing Development Corporation (“NYCHDC”), Freddie Mac and Merchants Capital in a collaborative effort, consists of a straight-to-permanent NYCHDC Freddie Mac Risk Share loan of approximately $375,000,000, which will fund the acquisition, rehabilitation and recapitalization of the property. The landmark NYCHA PACT transaction will benefit more than 6,300 residents by providing comprehensive upgrades to 2,625 apartments and common areas, including the complete renovation of residential unit interiors, installation of security systems, vital site improvements, common area improvements, community facility improvements, building exterior improvements, and replacement of building systems, as well as extensive electrical, mechanical and plumbing upgrades. The transaction will support the development, management and social service plans for nine developments: Armstrong I, Armstrong II, Weeksville Gardens, Berry Street-South 9th Street, Marcy Avenue-Greene Avenue Site A, Marcy Avenue-Greene Avenue Site B, 572 Warren Street, Independence Towers, and Williams Plaza. “Growing up in NYCHA Nathan Straus Houses, this transaction had a much deeper meaning – it brings me such joy to be able to provide quality housing to those who need it most, and to be able to work with people in this industry who are so proud and dedicated to working towards this same goal,” said Jessica Cherepski, Merchants Capital Senior Vice President and Chief Underwriter on the deal. “We’re honored to be a part of the team that closed this transaction which, beyond being historic, will affect meaningful change for thousands of deserving residents,” said Mathew Wambua, Merchants Capital Vice Chairman and Leading Originator on the deal. “Our gratitude is immeasurable and extends to our clients, Omni and Arker, as well as the innumerable parties and individuals who made this possible.” “Merchants Capital’s extensive lending expertise sets them apart,” said Eugene Schneur, Managing Director at Omni New York LLC. “We are deeply committed to guaranteeing local communities thrive and being part of the NYCHA Brooklyn PACT bundle is a perfect chance to support local Brooklyn neighborhoods, allowing communities to enjoy improved homes for generations.” “We are proud and excited to get to work on these critical repairs and bring modern amenities to the thousands of residents in the Brooklyn PACT bundle,” said Arker Companies Principal Daniel Moritz. “The NYCHA PACT program puts the community first and sets a new standard for preserving affordable housing for New Yorkers. Our hope is that this new partnership will improve the quality of life for residents and open up even more opportunities for their families.” “Together we are breathing new life into affordable housing developments that serve thousands of Brooklyn residents,” said Michael Patterson, Vice President of Underwriting and Credit at Freddie Mac Multifamily. “Freddie Mac is proud to have worked with our partners at Merchants, Arker, Omni and in city government to bring about this historic transaction, which brought out the best in each of the teams involved. This is an agreement that values communities, ensures residents have safe and modern housing and, most importantly, it preserves affordability where it is needed most.” To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, Twitter and LinkedIn.

NEW YORK (Feb. 18, 2020) – Mortgage banking company Merchants Capital today announces the hiring of Evan Gibson as Vice President of Debt Strategies. Gibson brings with him a diverse background in capital markets and commercial real estate to Merchants Capital. Most recently, Gibson served as the head of a direct lending platform for a top HUD lender, with a focus on health care and multifamily asset classes, which included both value-add and stabilized properties. Gibson is a graduate of the University of Washington with a degree in mathematics. In his new position, Gibson will lead Merchants Capital’s Debt Strategies group, which will focus on developing both bridge and permanent debt solutions outside of the typical balance sheet and agency landscape. Based in the company’s New York City office, Gibson will work collaboratively with Merchants’ originations, credit and capital markets teams to roll out these new solutions to clients. “When we look around an increasingly competitive agency lending marketplace, our company needs to continue to find ways to deliver innovative products to our customers,” said Brian Sullivan, COO of Merchants Capital. “Evan’s deep experience and key contacts will support the growth of this new channel, giving our producers more tools in their kit to find industry leading solutions for their clients.” Gibson is also a veteran of the United States Marine Corps, where he was a Team Leader at 2nd Reconnaissance Battalion. In 2009 he deployed to Now Zad in Afghanistan’s Helmand Province as both a Reconnaissance Marine and Scout Sniper. “I’ve been fortunate to see all sides of multifamily and health care agency execution, which has taught me just how critical the need is for innovative approaches to these deals in the marketplace. I am looking forward to developing the unique alternatives that will be key to our growth,” Gibson said. “The team at Merchants shares my vision to lead the industry with the client’s needs first in mind.” To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, Twitter and LinkedIn.