Dealmaker: Merchants Capital Secures $320 Million for Bronx Public Housing Development

(Rendering courtesy Merchants Capital)

Merchants Capital, Carmel, Ind., provided more than $320 million in financing to support renovations at Edenwald Houses in the Bronx, New York.

The property is the largest New York City Housing Authority site in the borough and the second largest in the state. It provides affordable housing to more than 5,000 residents.

Merchants Capital secured a $320 million New York Housing Development Corporation Freddie Mac Risk Share Loan on behalf of the property developer, Camber Property Group, to support a four-year construction period to rehabilitate the property.

The property will be registered on the New York state and national historic registries in an effort to unlock additional necessary funding through the Federal Historic Rehabilitation Investment Tax Credit. The site also will transition to the HUD Section 8 program, which will enable further federal funds.

“Maintaining the integrity of developments like Edenwald Houses is critical for the people of New York City, creating a haven where residents can forge their lives and futures in dignity,” said Mat Wambua, Vice Chairman and Executive Vice President, Agency Lending, at Merchants Capital.

Merchants Capital worked alongside notable industry partners, including project sponsors Camber Property Group, SAA | EVI and Henge Development in addition to NYHDC, Freddie Mac, JP Morgan Chase, Sidley Austin, Ballard Spahr LLP and Nixon Peabody.