Dealmaker: Merchants Capital Secures $26M for Puerto Rico Multifamily

(Mirador Las Casas, San Juan, Puerto Rico)

Merchants Capital’s New York office secured $25.9 million to renovate and upgrade Mirador Las Casas, a Section 8 and Low-Income Housing Tax Credit multifamily property in San Juan, Puerto Rico.

Located less than four miles from Isla Verde Beach, Mirador Las Casas provides affordable housing for low-income families in San Juan. The property totals 294 units across 21 three-story buildings. Long-term Section 8 and LIHTC agreements ensure extended affordability for residents.

Merchants Capital New York secured bridge loan from Merchants Bank of Indiana for local developer and investor Fernando L. Sumaza & Co. LLC. The revolving bridge loan will cash-collateralize a $56 million publicly offered housing bond issued by the Puerto Rico Housing Finance Authority and enable the project to comply with federal LIHTC regulations.

LIHTC equity for the project was syndicated by The Richman Group. Purchaser’s/Underwriter’s counsel was provided by Tiber Hudson and bond underwriting by Stifel.

“Merchants was able to provide an innovative cash-collateralized structure for Mirador Las Casas. This loan complies with federal LIHTC 50% test requirements and reduces required interest reserve development costs,” said Ben Levine, Senior Vice President of Originations at Merchants Capital New York.