Merchants Capital Raises $ 102 Million in Debt and Equity Financing to Rehabilitate Historic, Affordable Seniors Community in San Antonio
CHICAGO, IL – Financial services firm Merchants Capital (MCC) today announces the closing of a combined $ 102 million debt and equity financing to support the redevelopment of Granada Homes, a landmark affordable housing property located along the iconic River Walk in the heart of downtown San Antoine. Originally built in 1927 as the Plaza Hotel, the property is currently an underserved 14-story mixed-use tower for low- and very low-income seniors.
Funding for the project includes a $ 43 million Merchants Bank of Indiana (MBI) construction loan and $ 35 million in syndicated Merchants Capital tax credit equity. Merchants Capital also secured a $ 24 million term commitment from Fannie Mae for ongoing financing with the mortgage backed security purchased by the AFL-CIO Housing Investment Trust (HIT). The innovative financing included one of the first executions of a new financial structure created by the HIT called ‘Build to Bond’, which ensures that the project will be built with 100% union labor.
âCompleting this transaction in a record 60 days required the focus and attention of multiple disciplines across the Merchants product platform,â said Lee Oller, executive vice president of Merchants’ Chicago office. Capital. âWe are extremely grateful to our developer and our long-term partnership with the AFL-CIO Housing Investment Trust, who brought the project to fruition.â
Many observers feared the building would be sold and converted to an upscale hotel or market-priced condos, displacing its older, low-income tenants.
âThrough this transaction, the San Antonio Building & Construction Trades Council will be able to retain the property, completely renovate it, create good, well-paying union construction jobs and make this historic building available as affordable housing for people. aged for years to come, âsaid Chang Suh, CEO of HIT. âTogether this allows owners to deliver strong benefits that stay in the community. “
âThe Merchants Capital Equity team was proud to have provided $ 35 million in historic, historic and federal low-income housing tax credit equity financing to revitalize this community, in the part of a one-of-a-kind financing structure in partnership with the AFL-CIO Housing Investment Trust, âsaid Julie Sharp, Senior Vice President of Tax Credit Equity at Merchants Capital. âOur nimble financing structure allowed the project to close in record time and further consolidated Merchants as a single point of execution for all aspects of debt and equity financing for affordable housing projects across United States. “
Granada Homes has 265 studio and one-bedroom apartments for low-income senior households. The detailed renovation plan includes improvements to the finishes and offerings of all units, designed to specifically meet the needs of the elderly. The redevelopment will also increase the affordable housing stock by converting currently underutilized commercial space into additional affordable units. The loan will result in physical improvements to the main building system and significant savings in operating costs. Community and leisure spaces will be improved and modernized.
The financing of the property also includes a mark-to-market of the section 8 housing contract, an 8 (bb) transfer of a housing assistance contract (HAP) and the issuance of improved vouchers, as well. than a 100% ad. – valorem tax exemption.
âWe are thrilled to partner with Merchants and the AFL-CIO Housing Investment Trust and look forward to improving and expanding affordable housing and good union jobs in San Antonio alongside our partner, the San Antonio Building & Construction. Trades Council, âsaid Victor Atkins and Pat Biernacki, directors of Canopy, the developer working in partnership with the local labor organization. âThe Granada transaction required tremendous creativity within a tight closing time frame. We feel very fortunate to have found a partner in Merchants who brought the level of talent, commitment and resources to the table necessary not only to ensure the deal closes but also the continuation of a legacy of five decades of affordable quality of life for seniors in Granada. Houses.”
Granada Trade Council Housing Inc. is a 501 (c) (4) non-profit organization with a mission to provide rental housing to low-income seniors, run by the San Antonio Building & Construction Trades Council.