Merchants Capital announced $30.7 million in forward committed permanent financing for Central at Old Southside. Construction will begin in 2026 and is expected to be completed in 2028. That's a long time to hold a promise.
The Annex Group is developing the 227-unit project in Indianapolis. Ryan Clark, Senior Vice President of Development for The Annex Group, said, "As an Indiana-based company, it’s always deeply rewarding to develop in our own backyard." I read this as a developer betting on its home market.
Merchants Capital secured a $30.7 million cash-backed Freddie Mac Forward TEL loan for the development. The property has been awarded an Affordable Housing and Community Development Fund (AHCDF) loan from Indiana Housing & Community Development Authority (IHCDA) and a Payment in Lieu of Taxes (PILOT) agreement from the City of Indianapolis. The capital stack also includes construction and LIHTC equity financing.
Affordability will be maintained with 10 units restricted to families at 50% area median income (AMI) and 217 units restricted at 60% AMI.
Nick Miller, Assistant Vice President of Originations at Merchants Capital, said, "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." Meaningful and lasting—if the building gets built.
The Annex Group has a portfolio of communities valued at more than $600 million and has overseen more than $1.1 billion in projects.