Dealmaker: Merchants Capital Secures $59M in Construction Financing

Merchants Capital, Carmel, Ind., secured $59 million in financing for Bottleworks District, a mixed-use project coming soon to Indianapolis’ North Mass Avenue corridor.

Bottleworks District illustration courtesy of
Hendricks Commercial Properties

Hendricks Commercial Properties, Beloit, Wis., acquired a former Coca-Cola bottling plant at 850 Massachusetts Ave. in 2017. It plans to convert the 12-acre site into an arts and entertainment hub including the city’s first food hall, a boutique hotel, condos and rental apartments, 180,000 square feet of flexible office space and 175,000 square feet of prime retail space.

Merchants Capital Senior Vice President Matt Kaercher served as lead originator on the deal, working with MAP Approved Underwriter/Vice President at Merchants Capital Kate Belser and Assistant Vice Presidents Ryan Thompson and Daniel Dixon. Merchants Bank of Indiana funded the three-year new construction loan.

Hendricks Vice President of Development Isaac Bamgbose said the project’s first phase including a food and market hall called The Garage and a hotel is scheduled to open to this Spring. Retail and office space should deliver next summer and condos and rental apartments in 2022 and 2023.   

The Indianapolis Star reported the Bottleworks District attract is expected to attract more than two million visitors per year and create about 4,000 part-time jobs.

Hendricks Commercial Properties CFO Mark Koziol called the $300 million urban mixed-use development the largest private development of its kind in Indiana. The financing also involves Indiana Industrial Recovery Tax Credits. Known as the DINO tax credit, these credits provide an incentive for companies to invest in former industrial facilities requiring significant rehabilitation or remodeling expenses.