Merchants Capital today announced $30.7 million in forward committed permanent financing for Central at Old Southside, a 227-unit 4% low-income housing tax credit (LIHTC) multifamily development to be built in Indianapolis, Ind. by The Annex Group.
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, in addition to construction and LIHTC equity financing in the capital stack.
Affordability at Central at Old Southside will be maintained with 10 units restricted to families at 50% area median income (AMI) and 217 units restricted at 60% AMI.
“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,” said Nick Miller, Assistant Vice President of Originations at Merchants Capital. “We are proud to serve as a financing partner for Central at Old Southside and to continue building on our valued relationship with The Annex Group.”
Based in Fishers, Ind., The Annex Group is a multifamily housing developer with a portfolio of communities valued at more than $600 million. The company has overseen more than $1.1 billion in single family, multifamily, mixed-use and other commercial projects, including redevelopment and ground-up construction.
“As an Indiana-based company, it’s always deeply rewarding to develop in our own backyard,” said Ryan Clark, Senior Vice President of Development for The Annex Group. “With Central at Old Southside, we are transforming an underutilized infill site into an amenity-rich community. We’re excited to bring high-quality workforce housing to this neighborhood and help fuel the continued growth of the Old Southside area, with great connectivity to downtown Indianapolis and surrounding neighborhoods like Bates-Hendricks and Fountain Square.”
Upon completion, Central at Old Southside will feature two garden-style, four-story buildings with one, two and three-bedroom apartments. Each apartment will include fully equipped kitchens and washer/dryer units. Residents will have access to a clubhouse, computer, community and library/reading rooms, a fitness center, courtyard with picnic tables and grills, an outdoor playground and dog park.
Construction will begin in 2026 and is expected to be completed in 2028.
