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Merchants Capital Does Fannie Mae M.TEB Deal in Minneapolis
Merchants Capital has secured $16 million in construction and permanent financing for an affordable mixed-use development in Minneapolis’ North Loop. Known as the Redwell, the project is a 109-unit, six-story multifamily complex with commercial space on the first floor.
Combining a Merchants Bank of Indiana construction loan and a Fannie Mae MBS as Tax-Exempt Bond (M.TEB) Forward loan, it’s reportedly the first M.TEB deal with the Hennepin County Housing and Redevelopment Authority as bond issuer. It also had the lowest permanent rate to date for the M.TEB program, according to Merchants Capital.
As part of the funding, Merchants Capital also arranged a $1.7-million construction loan with 10-year permanent financing and a $7.9-million Low-Income Housing Tax Credit (LIHTC) equity bridge loan for the project on behalf of Schafer Richardson and WNC. The total development cost is more than $31 million, including an estimated LIHTC credit equity of $9.1 million.
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