Dealmaker: Merchants Capital Provides $21M for Multifamily

Merchants Capital, Carmel, Ind., provided $21 million in construction financing for two Indiana multifamily communities.

The firm provided an $11 million bridge loan to RealAmerica Cos., Indianapolis, to build SouthPointe Village, a 62-unit community coming to Fishers, Ind.

The 30-month loan with a $1.2 million Low-Income Housing Tax Credit will allow the development to be built with rents lower than current market value. Located at 11144 Lantern Road, SouthPointe Village will be available for renters who earn 50 to 80 percent of the area’s adjusted median income. Apartments will rent for $650-$950 a month for a one-bedroom and $760-$1,100 a month for a two-bedroom compared to the current average rent prices in Fishers for a one-bedroom ($990 a month) and two-bedroom ($1,250 a month).

“With rent steadily on the rise, the need for quality, affordable housing that Hoosiers can afford to live in grows greater and greater,” said Merchants Capital Assistant Vice President of Originations Brian Shelbourne.

Merchants Capital also provided $10 million in financing to construct Haven Homes, a 52-unit affordable and supportive housing apartment community coming to Plainfield, Ind.

Through a partnership between borrower RealAmerica Cos. and Sheltering Wings, a non-profit that provides emergency housing for survivors escaping abuse, 25 percent of Haven Homes’ affordable apartments are allocated for domestic violence survivors. All residents will have access to supportive services in the community resource center and clubhouse, with mental health services provided by Cummins Behavioral Health Systems and domestic abuse support provided by Sheltering Wings.

Construction on Haven Homes has started with a fall 2021 delivery expected.