Merchants Capital Closes $180M Multi-Investor Fund for 2,400 Affordable Homes

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Merchants Capital has closed Merchants Capital Tax Credit Equity Fund X (known as Merchants Fund X), the company’s second and largest national multi-investor fund, Commercial Observer can first report. 

The fund will pour cash into creating or preserving some 2,400 affordable homes in 18 different properties scattered around 12 states: California, Connecticut, Illinois, Indiana, Michigan, Missouri, Mississippi, North Carolina, Ohio, Oregon, Pennsylvania and Texas.

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The firm raised a total of $180 million from 15 institutional investors, including $11.6 million from Merchants Bank, along with seven repeat and seven new investors. 

“With an average rent discount to market of 34 percent, the affordable homes supported by Merchants Fund X offer families a meaningful boost in quality of life that would not be possible without the creativity, dedication and hard work of our investor and development partners,” Julie Sharp, executive vice president at Merchants Capital, said. “The banks that invested in this fund ultimately received Community Reinvestment Act credit in some of the markets that they serve. So ultimately, that attracted a lot of investment.”

“With more than $30 billion in capital provided to multifamily housing since inception, our company has emerged as a leading debt and equity provider for affordable housing across the United States,” Linda Hill, executive vice president of tax credit equity at Merchants Capital, said. “We remain focused on financing quality, safe affordable housing through a variety of debt and equity executions across the United States.”

Update: This story originally misattributed source material. This has been corrected. We apologize for the error.

Emily Fu can be reached at efu@commercialobserver.com.