Dealmaker: Merchants Capital Secures $120M for N.J. Development

(Image courtesy of Merchants Capital)

Merchants Capital, Carmel, Ind., announced $120 million in financing for the construction of a housing and retail development in downtown Newark, N.J.

The development, called Museum Parc, will include 250 mixed-income units, the Newark Museum of Art and 2,300 square feet of ground-floor retail space.

Merchants Capital secured $58 million, comprising a Freddie Mac 9% Low-Income Housing Tax Credit (LIHTC) Forward permanent loan, and a $62 million construction loan from Merchants Bank for Museum Parc.

“This deal represents Merchants’ streamlined internal collaboration, and we are proud of the efficiency demonstrated across the organization to arrange key components in the capital stack,” said Michael Milazzo, Senior Vice President of Originations at Merchants Capital. “Likewise, Museum Parc is a unique concept, representing the innovative ways our partners are providing affordable housing solutions nationwide.”

Museum Parc, which is expected to be completed by 2027, is co-developed by LMXD and MCI Collective.