
Dealmaker: Merchants Capital Secures $88M for Iowa Affordable Housing Community

(Illustration courtesy of The Annex Group)
Merchants Capital, Carmel, Ind., secured more than $88 million in financing for Union at Bluffs Run, a new 192-unit affordable housing community in Council Bluffs, Iowa.
The financing supports the expansion of The Annex Group’s affordable housing footprint. Union at Bluffs Run will be the developer’s fourth in the state.
Merchants Capital secured a $24.9 million Fannie Mae Forward MBS Tax-Exempt Bond permanent loan and $22.5 million in low-income housing tax credit equity. Merchants Bank provided a $41.5 million construction loan.
Affordability for the development will be supported via tax increment financing from the City of Council Bluffs and rent restriction to residents earning 60% of area median income or less.
Located on more than 10 acres, Union at Bluffs Run will comprise four, three-story apartment-style buildings with 72 one-bedroom, 96 two-bedroom, 24 three-bedroom units.
Union at Bluffs Run is expected to open in fall 2026.