Dealmaker: Merchants Capital Secures $152M for Affordable Development in Columbus, Ohio

(Image courtesy of Berardi + Columbus, via Merchants Capital)

Merchants Capital, Carmel, Ind., secured $152.3 million in total financing for a 315-unit affordable housing community underway in Columbus, Ohio.

The property–The Aries Lofts–is being developed by LDG Development.

Merchants Capital secured a $42.7 million Freddie Mac Forward TEL permanent loan, a $60 million tax-exempt construction loan and an $8 million equity bridge loan provided by Merchants Bank. Merchants Capital provided $41.6 million in 4% LIHTC equity financing.

“This deal is emblematic of the complex capital stack structuring that Merchants is able to execute for our clients,” said Nick Miller, assistant vice president of originations at Merchants Capital. “It is particularly rewarding to collaborate on an effort that has garnered strong public partner support to bring an impressive number of new affordable homes to the Columbus area.”

LDG Development was awarded Brownfield Remediation Funds from the Ohio Department of Development for environmental remediation of the project site, formerly the Wirthman Bros. Junkyard. A 15-year payment in lieu of taxes agreement was awarded from the city of Whitehall, granting a Community Reinvestment Area Tax Exemption.

Additionally, a grant was awarded by the Franklin County Economic Development & Planning Department, and the project was also financed with a bridge loan from The Affordable Housing Trust for Columbus and Franklin County and in partnership through a Capital Lease with the Columbus-Franklin County Finance Authority.

The property will designate 66 units for families at 50% AMI, 183 units at 60% AMI and 66 units at 70% AMI.

Construction began last month and is expected to be completed in 2027.