Dealmaker: Merchants Capital Secures $26.3M for NYC Senior Housing Conversion

Merchants Capital, Carmel, Ind., announced $26.3 million in total financing for the rehabilitation of a multifamily development in New York City. The complex–Three Arts Club–will be transformed into permanent and supportive housing for seniors (62-plus) upon its conversion.

The rehabilitation is being developed by the West Side Federation for Senior and Supportive Housing Inc.

Merchants Capital secured an $18.4 million Freddie Mac Unfunded Forward permanent loan and a $7.9 million construction loan participation from Merchants Bank. Three Arts Club will also receive $11.4 million in historic tax credits.

Renovation on the property began in late 2025 and it is expected to convert to permanent financing in 32 months.

The property further benefits from a Housing Assistance Payment Contract, under which tenants earning up to 50% area median income will pay 30% of their income toward rent. And, 25 units will be designated for formerly homeless individuals. WSFSSH will provide supportive services on-site available to all tenants.

“Three Arts Club has a remarkable history, initially built in the 1920s as dormitory-style housing dedicated for aspiring women artists,” said Ben Levine, senior vice president of originations at Merchants Capital. “We are proud to support the next chapter in providing vital affordable housing to local senior citizens and formerly homeless individuals in need.”