Dealmaker: Merchants Capital Provides $99M in Debt, Equity Financing for Indiana Community

(Image via Merchants Capital, courtesy of Biggs Group)

Merchants Capital, Carmel, Ind., provided more than $99 million in debt and tax credit equity financing for a mixed-use, mixed-income workforce housing community in Fort Wayne, Ind.

Merchants Capital secured a $34.4 million Freddie Mac Non-LIHTC Forward permanent loan and provided $9.5 million in federal low-income housing tax credit equity for the property. Merchants Bank provided $55.5 million in construction and equity bridge financing.

The community–called The Elex–is part of the Electric Works site, a redeveloped General Electric industrial campus that celebrated its grand opening in April. The redevelopment was part of phase II of The Electric Works redevelopment and is named in tribute to The Elex Club, a women’s organization formed by GE’s female employees. It was developed by Biggs Group in partnership with Ancora, Weigand Construction and MSquared,

The Elex provides 296 workforce housing units, with 207 rented at market rate and 89 affordable units set aside for residents earning between 30-80% AMI. Affordability is supported via LIHTC equity syndicated by Merchants Capital, state tax credits and tax increment financing bonds.

It also includes ground-level commercial space and numerous amenities.

The Elex provides housing for employees working in the West Campus, which includes commercial space, a medical clinic, a STEM school and food hall, all anchored by corporate headquarters. It was built in phase I. There are plans for a West Campus and East Campus in phase III.