We are a national,
full-service tax credit
equity syndicator.

Tax Credit Equity

Merchants Capital is a one-stop shop, for all aspects of affordable housing finance.

We are innovators in the industry. Our team of tax, acquisitions, asset management, and syndication experts offer structured equity investment solutions for the nation’s leading affordable housing developers and investors through proprietary, multi-investor, historic, and state tax credit funds. Co-investments are available from our bank parent-company.

  • Over $500M
    Equity Raised in 2021 & 2022
  • 30+
    Active Investors
  • 100%
    Funds at or Above Proforma Yields

The Merchants Advantage

For Investors

The Merchants Advantage

For Developers

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Social Impact

We do well by doing good. Our portfolio is designed to create opportunity, improve neighborhoods, and elevate the communities we serve. Some of our multi-investor and proprietary funds offer optional social-impact reserves, deploying investor capital into services, improvements, or enhancements to benefit tenants.

Recent Transactions

Affordable Housing Project Rendering
SAINT PAUL, Minn. – Leading multifamily financing provider Merchants Capital today announces it has provided more than $77 million in financing for the development of Soul, an affordable, mixed-use development in Saint Paul, Minnesota. The property – owned and developed by the key partner on the project, Schafer Richardson – is a crucial redevelopment project for the city and an important factor in its commitment to expanding and improving access to affordable housing within Saint Paul city limits. Situated on the West Side at the intersection of Robert Street and Plato Boulevard, Soul will provide 178 units of affordable housing to Saint Paul residents and families. The mixed-use complex will be constructed on a redevelopment site of a current city infill location, with all construction completed as 100% union labor and union construction. An environmental cleanup of the area will be associated with the redevelopment. The property was designed, and will be built, to earn an Enterprise Green Communities Certification, and will meet all necessary standards to comply with the City of St. Paul’s sustainable building policy. Additionally, the development will feature a rooftop solar array to support lower electricity rates. Upon completion of construction, Soul will feature one-, two-, three- and four-bedroom units, a unique feature designed to meet the needs of both local individuals and families. Of the total 178 units, 23 three-bedroom and 12 four-bedroom apartments will be restricted at 30% area median income (AMI), providing a deeply affordable option for families. The remaining 143 units comprise one-, two- and three-bedroom floorplans and will be restricted to individuals earning 60% AMI or lower. The 35 deeply affordable units will remain affordable at 30% AMI for 30 years, and all units within the property will remain at 60% or lower for 40 years. A proven leader in the multifamily lending space, Merchants Capital arranged the debt financing for Soul totaling more than $77 million. The firm secured a $33 million Merchants Bank of Indiana (MBI) construction loan, a $16.6 million MBI equity bridge loan and a $27.45 million Freddie Mac Tax-Exempt Loan (TEL) to comprise the total $77 million. RBC Capital Markets served as the equity provider for the project. “Supporting our local residents, families and communities by crafting innovative financing solutions for these much-needed affordable housing properties is what we do best,” said Marsha Goff, Executive Vice President at Merchants Capital’s Saint Paul Office. “Our mission is to work hand-in-hand with local developers and cities to increase access to high-quality, affordable housing, and the development of Soul is a beautiful depiction of that mission in action. We are grateful for the opportunity to showcase our commitment to the residents of Saint Paul and are determined to continue to make an impact in this neighborhood and nationwide.” Marsha Goff Merchants Capital was proud to work alongside Schafer Richardson, together with Greater Minnesota Housing Fund, AFL-CIO Housing Investment Trust (HIT), Freddie Mac, RBC Capital and Ramsey County. The City of Saint Paul also contributed greatly to the project through allocation of American Rescue Plan Act (ARPA) funds and grants to support gap financing. “Soul is Schafer Richardson’s third development with Merchants Capital, and we value their expertise and creativity in getting complicated real estate transactions done,” said Katie Anthony, Vice President of Development at Schafer Richardson. “Soul will add critical affordable housing units and positively activate an important corner of the West Side neighborhood in St. Paul and Merchants partnership is an essential element in that transformation.” The design firm serving as the project architect is Kaas Wilson Architects, and Weis Builders is serving as the project’s general contractor. Construction is currently underway, with an anticipated completion date in Q2 of 2024. To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, Twitter and LinkedIn and Instagram. ###
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Merchants Capital Secures $77MM+ for New Affordable Housing Project in Saint Paul, Minnesota
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CARMEL, Ind. – Leading multifamily financing provider Merchants Capital today announced it has secured a $15.5 million U.S. Department of Housing and Urban Development (HUD) loan for Lakeshore Manor in East Chicago, Indiana. Located on the corner of 136th and Main Street on the northwest side of the city, the new development will bring 206 units of income- and age-restricted housing to the area. Originally designed to replace the now-closed John B. Nicosia senior building, Lakeshore Manor will be entirely new construction, consisting of two four-story buildings that comply with National Green Building Standards (NGBS). The 221(d)(4) new construction deal will allow the property to feature 206 one- and two-bedroom apartment units reserved for seniors 62 years of age and older and/or disabled residents, with rent restricted at 60% of the area median income (AMI). Merchants Capital secured $15.5 million in HUD financing to support development of the project, along with a $13.5 million equity bridge loan through its parent company Merchants Bank of Indiana. Cinnaire, the property’s equity investor, provided a $21.7 million LIHTC investment in the project for a total development cost of $51 million. Upon completion of construction, all units at Lakeshore Manor will feature electric ranges, refrigerators, laminate countertops, ceiling fans, window treatments, central air conditioning and walk-in closets. As a senior housing complex, the development will be subject to Section 100-2 Housing and Urban Development (HUD) Minimum Property Standards and thus will include automatic temperature limit controls in the shower, electrical outlets for night lights between the bed and bathroom, handrails on at least one side of all interior corridors and an emergency call system in each unit. Additionally, 12 of the 206 total units at Lakeshore Manor will be designed as fully accessible, hearing-impaired units and will comply with the American with Disabilities Act (ADA) and Uniform Federal Accessibility Standards (UFAS) requirements. The property’s location in East Chicago makes it part of the city’s ongoing North Harbor Redevelopment Area project, an effort to improve public spaces including streets, playing fields, playground equipment and concert stages at Nunez and Callahan parks. With these proposed upgrades, and the new Lakeshore Manor housing development, the city hopes to provide major economic contributions that will support the long-term sustainability of the area. “Cinnaire has been changing lives and transforming neighborhoods in Indiana for more than 25 years,” said Keith Broadnax, Cinnaire Senior Vice President, Business Development. “We remain focused on creating housing opportunities to ensure seniors can live affordably in the communities they call home. Lakeshore Manor residents will enjoy living in the heart of the revitalization taking place in East Chicago. We’re proud to join our partners at Merchants Capital to make the vision of Lakeshore Manor a reality.” The new property is expected to debut in February 2024. To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, Twitter and LinkedIn and Instagram.
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Merchants Capital Finances $15MM+ for Affordable Senior Property in East Chicago, Indiana
Golden Gate Bridge
CHICAGO – The Chicago office of Merchants Capital recently secured a $35.6 million construction loan on behalf of HomeRise for the rehabilitation of San Cristina, a historic 58-unit single room occupancy (SRO) rental property located in San Francisco, which provides housing and support services to formerly homeless residents. The construction loan was provided by Merchants Bank of Indiana (MBI) with participation by the AFL-CIO Housing Investment Trust (HIT). Originally constructed in 1913 as an office building, San Cristina was acquired in 1991 by HomeRise and converted into one of the earliest permanent supportive housing communities in San Francisco. Upon completion, San Cristina will continue to provide affordable housing to the formerly unhoused and improve residents’ quality of life through enhanced support services offered by HomeRise. “We are excited about the opportunity to restore our San Cristina housing to its historical glory. Our funding partnership with Merchants Capital is a vital part of our ability to continue to provide supported housing opportunities,” said Rick Aubry, CEO of HomeRise. San Cristina was one of 27 projects to receive a 2022 California Housing Accelerator Award which allocated $24.2 million to the project as part of the state’s comprehensive strategy to address housing affordability for the state’s lowest-income households. In addition to the award, the project also received funding from the California Department of Housing and Community Development Multifamily Housing Program, the Mayor’s Office of Housing and Community Development and the Federal Home Loan Bank of San Francisco’s Affordable Housing Program through Century Housing Corporation. “Our participation in the rehabilitation of the San Cristina property is part of the AFL-CIO Housing Investment Trust’s continuing commitment under its billion-dollar Bay Area Initiative launched in 2020,” said HIT CEO Chang Suh. “This infusion of capital creates union jobs and provides much-needed housing for people who are at risk and experiencing homelessness.” This investment by Merchants Capital and the AFL-CIO HIT marks the two firms’ second investment with HomeRise, after the recently completed Jazzie Collins Apartments located at 53 Colton Street in San Francisco’s Hub neighborhood. To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, Twitter, LinkedIn and Instagram.
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Merchants Capital Secures $35MM+ for Supportive, Affordable Housing in San Francisco

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