Merchants Capital Corp.
CARMEL, Ind., Oct. 28, 2019 /PRNewswire/ -- Mortgage banking firm Merchants Capital has secured $21 million in funding using a Freddie Mac unfunded forward Low-Income Housing Tax Credit (LIHTC) cash loan on behalf of private affordable housing developer Dunn Development Corp.
The project - known as T-Building - will comprise the largest 9% Low-Income Housing Tax Credit allocation ever made in New York City. In addition, the financing structure will benefit from a capital stack that includes a significant capital subsidy from New York City's Department of Housing Preservation & Development (NYC HPD), as well as Bank of New York Mellon, Red Stone Equity and other sources. The funding was secured by Mathew Wambua, Merchants Capital executive vice president, and Michael Milazzo, Merchants Capital vice president of loan originations.
Formerly the Triboro Hospital for Tuberculosis, T-Building will provide much needed affordable and supportive housing in the heart of Jamaica, Queens. The historic renovation of the property has begun and is anticipated to be completed by July 2021, with lease-up beginning in August 2021.
"We are proud to continue supporting projects that allow homeless families to live in dignity," said Wambua. "Securing the largest allocation ever made in New York City is a great achievement for the development team and we look forward to assisting with projects that serve an immediate need in our community."
The 200-unit development will provide a mix of supportive housing for special needs and homeless tenants, as well as affordable housing for low- to moderate-income households.
"Dunn Development Corp. is thrilled to be the custodian of this historic building and to be partnering with Merchants to give it new life," said Martin Dunn, president of Dunn Development Corp. "Not only are we turning this 1938 hospital into critically needed homes for formerly homeless, low and middle income New Yorkers, we are restoring an architectural gem that will enhance the entire neighborhood."
T-Building will feature an attended lobby, on-site social services offices, two community rooms, a restored library and computer room, an exercise room, a laundry room, indoor bicycle parking, roof terraces and an outdoor children's play area. The site also includes a surface parking lot with approximately 100 spaces.
Replicating the success of other integrated supportive housing projects developed by Dunn Development Corp., T-Building will feature on-site services and 24-hour front desk coverage provided by CAMBA, a premier non-profit, supportive housing service provider.
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, formerly PR Mortgage & Investments (and RICHMAC Funding), 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.
FORWARD LOOKING STATEMENTS
This press release contains forward-looking statements which reflect current views of Merchants Bancorp and its subsidiary, Merchants Capital Corp., with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as "may," "might," "should," "could," "predict," "potential," "believe," "expect," "continue," "will," "anticipate," "seek," "estimate," "intend," "plan," "projection," "goal," "target," "outlook," "aim," "would," "annualized" and "outlook," or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, estimates and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. A number of important factors could cause our actual results to differ materially from those indicated in these forward-looking statements, including those factors identified in "Risk Factors" or "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Merchants Bancorp's Annual Report on Form 10-K for the fiscal year ended December 31, 2018 and in its subsequent filings with the Securities and Exchange Commission. Any forward-looking statements presented herein are made only as of the date of this press release, and we do not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.
