Merchants Capital secures $30.7M Freddie Mac forward loan for Indianapolis LIHTC project

Merchants Capital has secured $30.7 million in forward-committed permanent financing for Central at Old Southside, a 227-unit 4% low-income housing tax credit development in Indianapolis, Connect CRE reported on Oct. 16. The Annex Group is the developer.

The loan is a cash-backed Freddie Mac Forward TEL, according to Connect CRE. Construction is scheduled to begin in 2026 and finish in 2028. The completed project will hold two garden-style, four-story buildings of one-, two- and three-bedroom apartments.

"The addition of more than 200 affordable homes will make a meaningful and lasting impact in the Old Southside neighborhood, where the need for quality, affordable housing remains significant," Nick Miller, assistant vice president of originations at Merchants Capital, said in Connect CRE's report.

The financing follows Merchants Capital's $97.8 million package for the Stuart Gardens rehabilitation in Newport News, reported Oct. 9. That package paired HUD 221(d)(4) permanent debt with equity bridge loans, split between $62.8 million of permanent financing and $35 million of equity bridge loans. The Indianapolis deal is a single $30.7 million forward commitment.