REAL ESTATE

Merchants Capital secures $30.7M Freddie Mac loan for 227‑unit affordable project in Indianapolis

Merchants Capital announced Oct. 13, 2026 that it secured a $30.7 million cash‑backed Freddie Mac Forward TEL loan to fund Central at Old Southside, a 227‑unit 4% LIHTC affordable multifamily development in Indianapolis; construction is slated to begin in 2026 and finish in 2028.

News BriefBy BusinessIndy News DeskCommentsPublished October 13, 2026 at 6:50 PM EDT

AI-generated illustration of the topic: Merchants Capital secures $30.7M Freddie Mac loan for 227‑unit affordable project in Indianapolis — AI illustration · Not a photograph of the reported event.

Merchants Capital said Oct. 13, 2026 it secured a $30.7 million cash‑backed Freddie Mac Forward TEL loan as part of the permanent financing for Central at Old Southside, a 227‑unit 4% low‑income housing tax credit (LIHTC) development in Indianapolis. The Annex Group is the developer; construction is planned to start in 2026 with completion expected in 2028.

The project will include one‑, two‑ and three‑bedroom apartments with in‑unit washers/dryers and community amenities including a clubhouse, fitness center, courtyard, playground and dog park. The release says affordability restrictions will reserve 10 units at 50% area median income (AMI) and 217 units at 60% AMI. Merchants also cited a capital stack of construction financing and LIHTC equity, an IHCDA Affordable Housing and Community Development Fund loan, and a City of Indianapolis PILOT agreement.

WHY IT MATTERS

Merchants Capital’s announcement documents a key financing milestone for Central at Old Southside: the firm says a $30.7 million cash‑backed Freddie Mac Forward TEL loan provides forward‑committed permanent financing that supports moving the 227‑unit affordable project toward construction. In practical terms, the development’s income restrictions — 10 units at 50% AMI and 217 at 60% AMI, per the release — mean the owner will set rents so those apartments are available to households meeting those income limits once leasing begins.

The release ties the loan to a broader capital stack that includes construction financing, LIHTC equity and an IHCDA AHCDF loan, and it notes a City of Indianapolis Payment in Lieu of Taxes (PILOT) agreement for the site. Those items, as reported by Merchants Capital, are the financial pieces developers commonly assemble before breaking ground; the company lists The Annex Group as developer and describes the planned building program and amenities.

Watch for the next verifiable milestones Merchants identified: formal construction start (planned in 2026), any announced closings of the remaining financing pieces, and the projected completion in 2028. Those filings or permitting records will show whether the project proceeds on the schedule the Oct. 13, 2026 release laid out.

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BusinessIndy examines this development and its implications for Indiana businesses and communities using the linked sources.

Sources

Merchants Capital (press release): Merchants Capital Secures $30M+ for 227‑Unit Affordable Multifamily Development in Indianapolis, Ind. ↗

Linked source published October 13, 2026 at 9:37 AM EDT. A sourced news brief; no independent staff reporting is implied. Prepared with AI assistance from the linked research; material claims remain attributed in the article.

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