Merchants Capital secures HUD-insured construction loan for development in Mequon, Wisconsin


Mortgage banking firm Merchants Capital has provided a construction loan and permanent financing for Spur 16, a 156-unit, mixed-use development in Mequon, Wisconsin.

As the lender, Executive Vice President Lee Oller and Senior Vice President Susan Schnoll provided the construction and 40-year, fixed-rate, non-recourse loan through the U.S. Department of Housing and Urban Development (HUD)’s 221(d)(4) program on behalf of Shaffer Development.

“Spur 16 is particularly special because its financing and development was led entirely by women,” Schnoll said. “With visionary developer Cindy Shaffer at the lead, this female development and lending team was able to bring the project to life, delivering a beautiful and unique project to the market.”

Spur 16 combines the construction of new luxury apartments and high-end townhomes with the repurposing of three original public works buildings into vibrant commercial space, including a public market. The development features a clubhouse with a swimming pool, fire pits, event rooms and a workout facility outfitted with Peloton Bikes. Nestled in the heart of Mequon and within the beauty of nature, Spur 16 also features community gardens and a walking path with access to the Ozaukee Interurban Trail.

The apartments and townhomes offer concierge service for residents, including car detailing, dog walking, in-unit package delivery and food delivery. The first Leadership in Energy and Environmental Design (LEED)-certified project in Mequon, Spur 16’s deluxe “Smart Units” will allow tenants to control lights, temperature, music and emergency services.

“Working with Merchants Capital as the lender on this project has allowed the creation of an exceptional addition to the Mequon area,” said Cindy Shaffer, owner of Shaffer Development. “Shaffer Development isn’t in the real estate business – we’re in the people business. Spur 16 introduces modern, luxurious amenities to greater Milwaukee residents looking to live in an up-and-coming community.”

The development’s Mequon Public Market opened in June 2019 and brought some of Milwaukee’s premier restaurants north. Now 100 percent leased, market vendors include Anodyne Coffee, Purple Door Ice Cream, Beans and Barley, Screaming Tuna, Café Corazon, Bavette, Bowls, Happy Dough Lucky, Santorini Grill and Terrain. The development also houses St. Paul Fish Company, a retail store, an oyster bar and various indoor and outdoor dining. There is also a wellness building housing the Mequon Club Pilates and Yama Yoga True North.

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 our 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.