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Merchants Capital Secures $59M to Rehab Affordable Housing
Merchants Capital announced more than $59 million in financing for the rehabilitation of Amber Commons, a 198-unit multifamily housing development in Gaithersburg, Maryland.
Merchants Capital provided a $37.7 million Freddie Mac Immediate TEL permanent loan, and Merchants Bank provided a $21.3 million equity bridge loan for the rehabilitation. Previously a market-rate property with several moderately priced dwelling units, Amber Commons will be an affordable housing development with an average rent restriction of 60% of the area’s median income.
Amber Commons is being developed by real estate investment and asset management company MRK Partners, which specializes in the acquisition, preservation, and repositioning of affordable housing. The company currently has more than 4,000 units under management.
“Amber Commons is expanding the amount and quality of affordable housing in Gaithersburg with these upgrades, which are on par with, and in some cases, surpasses the current housing comparables in the market area,” said Ayanna Grasty, Vice President of Originations at Merchants Capital.
