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Merchants Capital Provides Acquisition Loan on Woodlawn Multifamily
The Chicago office of Merchants Capital recently secured more than $26 million in financing for the acquisition of Island Terrace, an affordable apartment complex in the South Side’s Woodlawn neighborhood. The project is located across from the planned Obama Presidential Center.
After acquisition, the borrower, Preservation of Affordable Housing (POAH), plans to syndicate the property with a tax credit structure utilizing both a 4% and 9% Low-Income Housing Tax Credit (LIHTC), making Island Terrace one of the first housing properties to utilize this type of financing.
Upon syndication, all 240 units will be divided into two condominiums, with 178 units housed in the 4% LIHTC condo and 62 units in the 9% LIHTC condo.
Along with securing the acquisition bridge loan facility, Merchants Capital issued project term sheets for both the 4% and 9% LIHTC equity bridge loans to be used during the construction and renovation phase.
- ◦Sale/Acquisition
- ◦Financing
