Dealmaker: Merchants Capital Arranges $25M for Indiana Mixed-Use

Merchants Capital, Carmel, Ind., secured $25 million in financing for mixed-use development River Point West, coming soon to Elkhart, Ind.

The River Point West development’s 173 apartments, 6,000 square feet of ground-floor retail space and a separate 42,000-square-foot Martin’s Supermarket will align with the River District Plan approved by the City of Elkhart.

Real estate private equity firm Great Lakes Capital, South Bend, Ind., received $20 million for River Point West and another $5 million for the onsite Martin’s Supermarket. Merchants Bank of Indiana supplied the construction loan.

Merchants Capital Assistant Vice President of Originations Brian Shelbourne called River Point West a “critical component” for Elkhart as it revitalizes its downtown area and provides more multifamily and workforce housing.

The project, a public-private partnership among the City of Elkhart, CRG Residential, Carmel, the Regional Cities Initiative and Great Lakes Capital, will reserve 10% of apartment units for residents earning less than 60% of the area’s median income. Construction has begun on River Point West and the project is currently ahead of schedule. The first of three apartment buildings should begin leasing shortly. The project will deliver in phases with full completion by spring 2021.