CARMEL, IN - Leading financial services provider Merchants Capital announces today it has successfully completed a $303 million securitization of 11 multifamily housing loans via its fourth Freddie Mac-sponsored Q-Series transaction.
The loans, ranging from $4 million to $62 million, were used for the acquisition or refinance of multifamily properties spanning eight states, with Florida, Indiana, Colorado and New Jersey making up 81% of the loan balance. Most of the properties are workforce housing developments, with a significant portion of the units’ composition comprising less than 80% of the area median income (AMI).
This is Merchants’ fourth Freddie Mac Q transaction in the last two and a half years, totaling $1.1 billion in crucial real estate loans securitized nationwide. It is the second Q-Series transaction of 2023. Merchants has been the loan seller in four of the last nine Freddie Mac Q transactions, making Merchants Capital Freddie Mac’s largest Q-Series loan seller two years in a row.
This news comes on the heels of a record-breaking year for the Capital Markets platform at Merchants, having executed its second and third Q-Series deals in 2022. Since its inception in 2020, the Capital Markets group has executed more than $3.5 billion in securitizations and accumulated more than $1 billion in loan purchases.
“Executing on this securitization shows our strength and performance as a regional bank in this volatile financial climate,” said Evan Gibson, Merchants Capital’s Senior Vice President and head of Capital Markets. “In a down year for commercial real estate (CRE) securitizations, Merchants is completing complex securitizations to finance affordable housing in a responsible manner. We are proud to continue growing our relationship with Freddie Mac.”
The transaction supports financing of affordable housing in underserved markets, qualifying as “Social Bonds” within the Social Bonds Framework published on Freddie Mac’s website. Proceeds from Social Bonds are used to provide liquidity to social impact financial institutions (community development financial institutions, housing finance agencies and small financial institutions), including parent company Merchants Bank of Indiana.
To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, X, LinkedIn and Instagram.
ABOUT MERCHANTS CAPITAL: With over 30 years of success built on putting people first, Merchants Capital is a proven leader in financing for multi-family housing nationwide. Our licenses with Fannie Mae, Freddie Mac, and HUD/FHA, in addition to our bank’s balance sheet products, allow us to offer custom solutions with agility and ease of execution, expanding access to housing in meaningful and impactful ways. Recognized as a top five affordable lender, Merchants Capital pairs our comprehensive debt offerings with in-house tax credit equity to provide a one-stop-shop for developers and owners. To learn more about Merchants Capital, visit www.merchantscapital.com
Forward-Looking Statements: This press release contains forward-looking statements which reflect Merchants Bancorp’s current views with respect to, among other things, future events and financial performance. These statements are often, but not always, made through the use of words or phrases such as "may," "might," "should," "could," "predict," "potential," "believe," "expect," "continue," "will," "anticipate," "seek," "estimate," "intend," "plan," "projection," "goal," "target," "outlook," "aim," "would," "annualized" and "outlook," or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about the industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control, such as the potential impacts of the COVID-19 pandemic. Accordingly, management cautions that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, estimates and uncertainties that are difficult to predict. Although the Merchants Bancorp believes that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. A number of important factors could cause actual results to differ materially from those indicated in these forward-looking statements, including the impacts of the COVID-19 pandemic, such as the severity, magnitude, duration and businesses’ and governments’ responses thereto, on the Merchants Bancorp’s operations and personnel, and on activity and demand across its businesses, and other factors identified in "Risk Factors" or "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Merchants Bancorp’s Annual Report on Form 10-K and other periodic filings with the Securities and Exchange Commission. Any forward-looking statements presented herein are made only as of the date of this press release, and we do not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.