Le Lézard
Classified in: Business
Subject: FNC

Merchants Capital Secures First-Ever Fannie Mae M.TEB Execution in the State of Indiana


CARMEL, Ind., Aug. 23, 2019 /PRNewswire/ -- Mortgage banking firm Merchants Capital has secured $21.4 million in funding using a Fannie Mae Mortgage-Backed Security (MBS) as collateral for new Tax-Exempt Bonds (M.TEB), combined with 4% low income housing tax credits (LIHTC). The funding was the first of its kind in the state of Indiana and sourced on behalf of long-time Merchants Capital customer, the Gene B. Glick Company, for the preservation of Carriage House of Evansville, a Section 8 housing development in Evansville, Indiana.

Merchants Capital Corp. (PRNewsfoto/Merchants Capital Corp.)

The execution utilized publicly-issued tax exempt bonds and 4% tax credit equity, provided by PNC Bank, to fund approximately $11 million in repairs, renovations and upgrades to the community. Carriage House of Evansville dates back to 1978 and is a 100% Section 8 affordable housing community serving tenants at 60% of the area median income (AMI) or less.

Fannie Mae's M.TEB solution provides borrowers with a lower interest rate and significant savings over the life of the loan, offering a loan-to-value (LTV) ratio of up to 90%. This execution can be used to finance the construction, acquisition or rehabilitation of Multifamily Affordable Housing (MAH) properties.

"Fannie Mae continues to look for ways to create and preserve affordable housing," said Angela Kelcher, Director of Affordable Housing at Fannie Mae. "The MBS as Tax-Exempt Bond (M.TEB) execution provides efficient, low-cost financing and we were excited to work with Merchants to support the preservation of affordability while also improving the quality of housing for the residents."

CRG Residential is the general contractor on the project and is performing all renovations at the site. All units are being modernized using CRG's RAPID program, which completely renovates and modernizes units in just days, limiting disturbance to existing tenants. Updates include new solid surface flooring, cabinetry and countertops, energy efficient light fixtures, appliances, doors and trim, and complete bathroom renovations.

"We are excited to partner with Fannie Mae and Glick to preserve much-needed affordable housing in the state of Indiana," said Michael R. Dury, president of Merchants Capital. "Fannie Mae's M.TEB program gives access to a lower cost of capital, which allows the development team to substantially renovate the community. As with any project involving Glick, the company's vision and strategy is first class and at the end of the day, the completion of this project is a win for the tenants, which is wonderful."

Additional Carriage House of Evansville improvements include entry signage, asphalt and storm drainage repairs, roofing, modernized elevators and playground equipment, as well as the addition of a bark park, lakeside picnic area, fitness center and an internet cafe. 

"We're grateful for our long-standing relationships with Merchants Capital and Fannie Mae that enable us to undertake renovations like this one at Carriage House of Evansville," said David Barrett, president and chief executive officer at Glick. "Ultimately, this project illustrates our commitment to our residents ? preserving their affordable housing and providing them high-quality apartment homes."

To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, Twitter and LinkedIn.

ABOUT MERCHANTS CAPITAL
Merchants Capital is a multifamily, affordable, and healthcare lender offering a direct way to access fixed rate, long-term, non-recourse financing via its bank, Merchants Bank, all with a single point of contact. Merchants Capital strives to provide the best origination and service of its loan products with exceptional customer service, accuracy, creativity, speed and conformance to regulations. To learn more about Merchants Capital, visit www.merchantscapital.com.

ABOUT GENE B. GLICK COMPANY
Founded in 1947 and based in Indianapolis, the Gene B. Glick Company is a privately held real estate ownership, development and management firm, with more than 20,000 units in 13 states. The company's philosophy, "Built to Be Home," is reflected through its industry leadership in customer service, property management and quality construction of affordable and market-rate apartment units. Glick has a long tradition of giving back to the communities where it operates through its corporate social responsibility efforts and association with Glick Philanthropies, a family of charitable initiatives, programs and organizations focused on building community and creating opportunity. Since 1982, Glick Philanthropies has invested nearly $200 million to strengthen the quality of life in central Indiana and in communities where Glick properties are located to ensure that people can reach their full potential and lead lives of dignity. For more information, visit GeneBGlick.com.

SOURCE Merchants Capital


These press releases may also interest you

at 06:38
Elsevier, a global leader in information analytics specializing in science and health, is making Embase, its biomedical database, available to Research4Life with immediate effect. Elsevier is a founding partner of Research4Life, a public-private...

at 06:35
Epizyme, Inc. , a fully integrated, commercial-stage biopharmaceutical company developing novel epigenetic therapies, today provided business and pipeline updates and reported fourth quarter and full year 2019 financial results. "We began 2020 with...

at 06:35
White Gold Corp. (the "Company") is pleased to announce that Terry Brace, P. Geo. has joined the Company as Vice President of Exploration. Terry brings over 25 years of diversified experience in the mineral exploration and mining industry, covering...

at 06:30
iAnthus Capital Holdings, Inc. ("iAnthus" or the "Company") , which owns, operates, and partners with best-in-class regulated cannabis operations across the United States, is pleased to announce the opening of its first Northeast Be. retail store...

at 06:30
Pyxus International, Inc. , a global value-added agricultural company announced today the next step in its transformation journey, which includes the consolidation of its emerging market branded businesses under a new operating model, the...

at 06:30
SkyWest to operate the aircraft under a multi-year contract with all 25 aircraft expected in service by the end of the first quarter of 2021 The aircraft are financed by United and will be transitioned from another United Express carrierSkyWest, Inc....



News published on 23 august 2019 at 09:29 and distributed by: