Dealmaker: Merchants Capital Secures $33M for Affordable Housing Development in Minnesota
(Image courtesy of Merchants Capital)
Merchants Capital, Carmel, Ind., announced $32.9 million in financing for the construction of an affordable and supportive multifamily housing development in St. Paul, Minn.
Merchants Capital provided $18.9 million in 9% low-income housing tax credit equity and secured a $14 million bridge loan from Merchants Bank for the development.
The development—East 7th Street—includes 17 units for individuals earning 30% of AMI and 43 for individuals earning up to 60% of AMI. Seven units will be set aside for people with disabilities and another seven are designated for high-priority homeless housing via Ramsey County Housing Support Program and Coordinated Entry System.
The complex was developed by Project for Pride in Living.
“Merchants Capital is proud to provide nearly $19 million in equity to help PPL’s vision of East 7th Street become a reality,” said Josh Reed, Executive Vice President of LIHTC Acquisitions at Merchants Capital. “This project embodies the mission of PPL and the low-income housing tax credit program by providing quality housing and career readiness services for 60 households in St. Paul.”
The 60 units will range from one- to five-bedroom apartments. Construction began in December and is expected to be completed in a year.
