Merchants Capital Secures $185 Million for Brooklyn Affordable Housing Rehabilitation Project
Merchants Capital, a financial services provider, has announced $185 million in financing for the acquisition and rehabilitation of Nostrand Houses, a 1,148-unit multifamily property in Brooklyn, New York. This marks the first financial closing for the New York City Public Housing Preservation Trust (the Trust), which is developing Nostrand Houses. The financing package includes a $185 million taxable loan from Merchants Bank, with $50 million co-lent by the AFL-CIO Housing Investment Trust (HIT). Nostrand Houses is the inaugural development under the Trust’s Modernization & Preservation (Trust Mod) Program, which aims to repair, rehabilitate, and modernize traditional Section 9 housing by converting units to the federal Section 8 program. The project involves extensive renovations across 16 residential buildings constructed between 1949 and 1951, including new kitchens, bathrooms, electrified heating and cooling systems, elevators, accessibility improvements, lead and mold remediation, and upgraded securi...
