The New York office of leading financial services provider Merchants Capital announces it has secured $11 million in debt and Low-Income Housing Tax Credit (LIHTC) equity financing for the construction of Cedarwood Homes in Pittsburgh, marking the firm’s continued expansion into new markets. The new-build property will bring 46 age- and income-restricted units to Fairywood, one of Pittsburgh’s most western neighborhoods.
Together, Merchants Capital’s debt and equity teams secured an $11 million construction and equity bridge loan on behalf of the property developer, Tryko Partners. The funds will provide tax credit equity bridge financing to support construction development costs.
“Securing the financing for this property represents a significant milestone for us at Merchants Capital,” said William Jones, Senior Vice President at Merchants. “Since launching our tax credit syndication platform in 2021, we have been searching for projects that allow us to exercise our talents as a full-service lender. Cedarwood Homes granted us that opportunity, and it is also the first LIHTC-financed, senior affordable property in Pittsburgh’s West End in history. We are honored to have worked alongside several of the city’s top housing agencies on such an important property for the people of Pittsburgh.”
Situated at the intersection of Broadhead Fording Road and Village Road, and at the former grounds of the Fairywood School, Cedarwood Homes will feature 46 one-bedroom apartments across 12 one-story buildings. Each unit will host a private, ground-floor entrance. In-unit amenities include a washer and dryer and modern, vinyl plank flooring. The property will also feature a community building with management offices, as well as a fitness center, meeting area, kitchen and multi-purpose space reserved for residents.
All units at Cedarwood Homes will be age-restricted to individuals 62 years of age and older. Within the 46 total units, 39 units will be income-restricted, with five units reserved for residents earning 20 percent of the area median income (AMI), 19 for those earning 50 percent AMI and 15 for those earning 60 percent AMI. The remaining seven units will be offered at market rate.
Merchants Capital was proud to work alongside Tryko Partners and together with Urban Redevelopment Authority of Pittsburgh (URA), Housing Authority of the City of Pittsburgh (HACP) and Pennsylvania Housing Finance Agency (PHFA).
“The Cedarwood Homes housing development marks a milestone for the Fairywood neighborhood and its residents,” said Susheela Nemani Stanger, Executive Director of the URA. “After the neighborhood has experienced years of disinvestment, the URA seeks to set things right by beginning a new phase of development and reinvestment into this community. This starts by providing affordable and livable housing to its senior population. We want to thank Tryko Partners, Merchants Capital, HACP, PHFA and all other involved parties that made this project possible.”
“We’re proud to be working with Merchants Capital, the URA and PHFA to bring sorely needed affordable, senior citizen housing to the West End,” said Caster D. Binion, HACP Executive Director. “Funding from HACP’s Project Based Voucher/ Gap Financing program is supporting innovative affordable housing developments like Cedarwood Homes in neighborhoods throughout the city, as we continue to use every tool at our discretion in order to meet the growing demand for affordable housing.”
Upon completion of construction, Cedarwood Homes will certify to the 2020 Enterprise Green Communities criteria and the U.S. Department of Energy’s (DOE) Zero Energy Ready Home Program, which indicates the units will be designed and built at a high performance to ensure maximum energy efficiency and savings. The property is set to debut Spring 2024.
