PR Mortgage & Investments to Provide Financing for $28.5 Million Workforce Housing Community in Indianapolis

Articles PR Mortgage & Investments to Provide Financing for $28.5 Million Workforce Housing Community in Indianapolis

Loan Closings, Press Release | July 20, 2018

Carmel, Indiana-based PR Mortgage & Investment Corp. (“PR Mortgage”) secures financing for the development of a $28.5 million workforce housing community in Indianapolis. This unique “workforce” housing development is a joint venture between Strategic Capital Partners, LLC and Goodwill of Central & Southern Indiana. The plans include constructing 208 units comprised of studios, one- and two-bedrooms, at the southwest corner of West Michigan Street and White River Parkway, in the River West neighborhood. The project is targeted toward middle-income workers who want to live within one mile of their workplace but who can’t afford higher downtown rents.

“Strategic Capital Partners is a valued client and we appreciate the opportunity to assist in the development of this housing community. Our ability to provide construction financing through our parent company, Merchants Bank while advising on options for permanent debt at stabilization, creates a seamless process from application to closing. Riverview Apartments are a value-add to downtown Indianapolis, providing housing options for middle-income workers, contributing to the vitality of the community”, said Michael R. Dury, President of PR Mortgage.

Michael Dury

President and CEO

“SCP was fortunate to have such a strong partner in PR Mortgage on this complex transaction. The team at PR showed a solutions-driven mindset leading up to closing and their execution was the lynchpin in allowing this project to move forward. We thank them for their continued advocacy of this important development”, said John Sweet, Chief Investment Officer of Strategic Capital Partners.

All the units are reserved for those with incomes between 61 percent and 120 percent of the area median income which is currently $30,000 to $60,000 annually. The development will include a fitness center, free onsite parking and outdoor amenities.

CARMEL, Ind. (Jan. 19, 2024) – Merchants Capital today announced large capital raises, including $506.7 million in fund investments closed across the firm’s multi-investor, proprietary and state credit offerings for the year ended Dec. 31, 2023. The firm raised an additional $365 million in tax credit equity in January 2024.The firm’s capital raise, which has surpassed $1.4 billion since the platform launched in 2021, comprises $725 million in multi-investor offerings, $26 million in state credit syndications and $664 million in proprietary fund investments.In December 2023, the firm closed Merchants Capital Tax Credit Equity Fund 16, LLC, a $160 million multi-investor fund with 12 bank investors, including three new investors. In January 2024, the firm closed Merchants Capital Tax Credit Equity Fund 14, L.P., its largest ever fund capital raise at $263 million with a large institutional investor.“Successfully raising $1.4 billion in tax credit equity since launching our platform three years ago is a remarkable achievement—it sets Merchants Capital apart from other new entrants in the tax credit equity syndication space,” said Julie Sharp, Executive Vice President at Merchants Capital.“Our success is a testament to our team, the support of our investor and developer partners and the innovative platform we have built across all business lines at Merchants Capital,” said Linda Hill, Executive Vice President at Merchants Capital.The announcement of record-breaking results in the tax credit equity division follows Merchants Capital’s recognition by Affordable Housing Finance as the #2 largest lender for affordable housing in the United States.“It has been extremely rewarding to build out an equity originations platform in a firm that offers industry-leading debt products and balance sheet solutions for affordable housing developers,” said Josh Reed, Executive Vice President of Acquisitions at Merchants Capital. “We are grateful to our developer and investor partners, who make our success possible.”Merchants Capital’s asset management portfolio includes tax credit equity investments in more than 13,000 affordable homes in 23 states.“Our remarkable production results reflect strongly on the capabilities and investments we have made in our asset, fund and risk management team of professionals who are steadfast in their dedication to our investor and developer partners,” said Chris Messmann, Executive Vice President of Syndications and Tax at Merchants Capital.To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, X, LinkedIn and Instagram.Read MorePress Release, Tax Credit Equity | January 19, 2024Merchants Capital Surpasses $1.4B in Equity Raised Since Inception, with Back-to-Back Closings of $160M Multi-investor Fund and $270M in Proprietary FundsJob and Life Skill Services at Launchpad Apartments to Create Opportunity for Homeless YouthCARMEL, Ind. (Nov. 29, 2023) – Leading financial services provider Merchants Capital today announced it has secured $23 million in total financing for the construction of Launchpad Apartments, a permanent supportive housing (PSH) development in Colorado Springs, Colorado. Launchpad is the first Transition Aged Youth (TAY) development in the primary market area (PMA) and part of a community effort to halt the cycle of homelessness.Cohen-Esrey Development Group (CEDG) partnered with nonprofit The PLACE to provide housing and services for youth experiencing homelessness, including assistance with job placement, life skills, counseling and healthcare. The 50-unit property will be restricted to TAY households earning 30% or less of the area median income (AMI), in addition to those aged 18 to 24 who are experiencing, or are at risk of, homelessness. Launchpad’s 50 units of supportive housing have the capability of resolving up to 69.4% of youth homelessness in El Paso County, Colorado, according to the 2023 Point in Time count of homelessness.Merchants Capital provided $10.9 million in federal Low-Income Housing Tax Credit (LIHTC) equity for the project. Merchants Bank provided a $12.1 million construction bridge loan.Additional project funding includes $113,739 in 45L tax credit equity, $5.25 million in soft debt, $3.1 million in permanent debt and $300,000 in city fees rebates. The property will operate under a 20-year Section 8 housing assistance payment (HAP) contract covering 100% of the units.“It has been an honor to be part of an effort to protect at-risk youth, and we are proud to work alongside The PLACE and CEDG to bring this project to fruition,” said Linda L. Hill, Executive Vice President, Tax Credit Equity at Merchants Capital. “We launched our tax credit syndication platform back in 2020, and it’s been incredible to work alongside partners who share a passion and mission for making affordable housing a reality for all Americans. Launchpad Apartments serves as an important step towards this communal goal.”“Elevating people in diverse communities aligns with Merchants’ mission,” said Dwayne George, Executive Vice President, Agency Production at Merchants Capital. “We look forward to seeing the positive influence this project will have on the neighborhood and its residents.”Launchpad Apartments will sit in the “very walkable” neighborhood of Old Colorado City in western Colorado Springs. The site is adjacent to essential goods, employment opportunities and recreation areas. It is also 400 feet from the metro transit stop.“We are very proud to have the opportunity to partner with Merchants Capital on Launchpad,” said Lisa Sorensen, Development Director of Cohen-Esrey Development Group. “This collaboration is a testament to the power of community partnerships and their ability to affect positive change. Our shared vision is to provide young adults in need with more than just a roof over their heads – we're offering them a fresh start with Launchpad. We’d like to extend a special thank you to all our partners for helping make this a reality.”Launchpad Apartments is currently under construction and is set to be completed in October 2024. To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, X, LinkedIn and Instagram.Image Courtesy of Cohen-Esrey Development GroupRead MorePress Release | November 29, 2023Merchants Capital Secures $23MM+ in Total Financing for Colorado Springs-Based Supportive HousingCARMEL, Ind. (Nov. 27, 2023) – Leading financial services provider Merchants Capital today announced it has secured $17.4 million in Low-Income Housing Tax Credit (LIHTC) equity financing for the new construction of Reserve on Park Place, an affordable senior property in Fort Wayne, Indiana. The property will bring 187 age- and income-restricted units to a high-demand area for affordable housing."This project is emblematic of Merchants’ collaborative, full-service approach and commitment to affordable housing,” said Ben Trussell, Vice President of Acquisitions at Merchants Capital. “We are proud to provide a range of financing sources that support affordable housing development, particularly in closing funding gaps. We deeply value our partnership with Brown Capital Group, Leo Brown Group and Rogers Development Group."Developers Brown Capital Group, Leo Brown Group and Rogers Development Group bring significant multifamily and senior housing experience to Reserve on Park Place. Restricted to seniors aged 55 and older, the three-story low-rise property comprises 15 studio units, 136 one-bedroom units and 36 two-bedroom units limited to residents earning 40%, 60% and 80% of the area median income (AMI). The units are designed to support senior and special needs, with amenities that include handrails, grab bars, intercoms, limited access and video surveillance.“Given the numerous challenges amidst development projects, specifically in the affordable housing sector, Merchants Capital was an anchor in an unpredictable financing environment,” said Jarod Brown, CEO of Brown Capital Group. “We are delighted to bring affordable housing to an area which has such a high concentration of jobs for our future residents.”Reserve on Park Place will sit in a neighborhood among single-family and multi-family homes, with easy access to restaurants, hotels, a grocery store, a pharmacy and local businesses along State Route 1.Construction is expected to be completed in April 2025.To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, X, LinkedIn and Instagram.Reserve on Park Place image courtesy of R3B Architecture.Read MorePress Release, Tax Credit Equity | November 27, 2023Merchants Capital Provides $17.4MM+ in LIHTC Equity Financing for Indiana-Based Affordable Senior Property

As an expert in real estate finance and affordable housing development, I've closely followed the intricacies of projects similar to the one outlined in the provided article. My depth of knowledge extends to various facets of real estate financing, tax credit equity, and the complexities involved in constructing workforce housing and supportive housing developments.

In the article, PR Mortgage & Investment Corp. is showcased as a key player in securing financing for a $28.5 million workforce housing community in Indianapolis. This development, a joint venture between Strategic Capital Partners, LLC, and Goodwill of Central & Southern Indiana, aims to provide affordable housing options for middle-income workers within one mile of their workplace.

PR Mortgage, through its parent company Merchants Bank, plays a crucial role in providing construction financing and advising on permanent debt options, ensuring a seamless process from application to closing. The 208-unit housing community, located at the southwest corner of West Michigan Street and White River Parkway, caters to individuals with incomes between 61 percent and 120 percent of the area median income.

Furthermore, the article highlights Merchants Capital's substantial achievements, including a capital raise of over $1.4 billion in tax credit equity since its platform launch in 2021. This success is attributed to their multi-investor offerings, proprietary fund investments, and state credit syndications.

The article also discusses another project by Merchants Capital, the Launchpad Apartments in Colorado Springs, a permanent supportive housing development for transition-aged youth experiencing homelessness. This project involves a collaboration between Cohen-Esrey Development Group and nonprofit The PLACE, with Merchants Capital providing financing through federal Low-Income Housing Tax Credits (LIHTC) equity and a construction bridge loan.

Additionally, Merchants Capital secures funding for Reserve on Park Place, an affordable senior property in Fort Wayne, Indiana. The property, developed by Brown Capital Group, Leo Brown Group, and Rogers Development Group, aims to bring 187 age- and income-restricted units to the high-demand area for affordable housing.

In summary, the provided article underscores the role of PR Mortgage & Investment Corp. and Merchants Capital in facilitating financing for diverse housing projects, including workforce housing, supportive housing for youth, and affordable senior properties. These initiatives contribute significantly to addressing the housing needs of various demographic groups while navigating the complexities of real estate finance and tax credit equity.

PR Mortgage & Investments to Provide Financing for $28.5 Million Workforce Housing Community in Indianapolis - Merchants Capital (2024)

Related Stories