Dealmaker: Merchants Capital Secures More Than $56M for Affordable Indiana Project

(Image via Merchants Capital, courtesy of Birge & Held)

Merchants Capital, Carmel, Ind., announced more than $56 million in total financing for the acquisition and rehabilitation of an affordable housing development called Cumberland Crossing in Fishers, Ind.

The property is being developed by Birge & Held.

The resyndication of tax credits will extend Cumberland Crossing’s affordability period for an additional 30 years, with rent restrictions for half of the units at 50% of area median income and the other half of the units at 60%.

Birge & Held acquired the property via transfer of physical assets and assumed the existing $14.4 million U.S. Department of Housing and Urban Development (HUD) 223(f) loan, which was originated in 2019. Merchants Capital simultaneously closed a $17.2 million HUD 241(a) supplemental permanent mortgage for Cumberland Crossing, which will be drawn as renovations progress. Additionally, Merchants Capital provided $19.9 million in federal low-income housing tax credits and $4.4 million in solar tax credits, with equity bridge loan financing provided by a third-party bank.

“This deal showcases how thoughtful tax credit structuring can unlock real value for affordable housing preservation,” said Josh Reed, executive vice president of tax credit acquisitions at Merchants Capital. “By combining LIHTC and solar tax credits with bridge financing, we were able to support Birge & Held with efficiency. It’s a great example of how our equity platform can be leveraged to meet both financial and community goals.”

Cumberland Crossing contains 232 one-, two- and three-bedroom garden style apartments.