Leading financial services provider Merchants Capital announced $70 million in financing for the new construction of Flats at Pinecreek, a 252-unit workforce housing development in Elkhart, Indiana developed by Holladay Properties.
Merchants Capital secured a $35 million Freddie Mac Forward Commitment permanent loan and a $35 million construction loan provided by Merchants Bank for Flats at Pinecreek.
Flats at Pinecreek will be supported via an 18-year Tax Incremental Financing (TIF) structure and will provide roughly 25% of its units between 60% and 80% area median income (AMI), with the remaining units at market-rate. The development will be located on the southwest side of downtown near major manufacturers of trucks, trailers and RVs. Elkhart is a major recreational vehicle (RV) manufacturing hub with a significant healthcare and logistics presence.
“Merchants is seeing demand across the country for affordable housing tailored to working professionals—it is very rewarding to meet Elkhart’s housing need with key capital stack financing, collaborating with Holladay Properties and partners to support the city’s growth,” said JW Demaree, Assistant Vice President of Originations at Merchants Capital. “We look forward to seeing the positive impact that Flats at Pinecreek will have on local employers and throughout the greater community.”
Holladay Properties is a vertically integrated commercial real estate firm, with more than 70 years of development and management experience. It currently manages more than 1,300 multifamily units and 10M+ square feet of commercial space over a $3 billion portfolio valuation across 15 states.
Flats at Pinecreek includes seven three-story buildings, a clubhouse building and 126 one-bedroom units, 105 two-bedroom units and 21 three-bedroom units. It features gourmet bar kitchens, quartz countertops with tile backsplash, stainless steel appliances, designer fixtures and finishes, a smart thermostat and smart door locks, walk-in closets, full-size washer/dryer, patios and balconies.
Community amenities will include a 24-hour fitness center, pool, pup park, dog washing stations, residential lounge and coffee bar, grill stations, mail and package delivery hub and gas fire pits.
