**Merchants Capital Secures $25.5M for Affordable Housing Development in Shakopee, MN**
Merchants Capital has announced the closing of $25.5 million in combined debt and equity financing for the construction of Prairie Pointe, a new 42-unit affordable and supportive housing community in Shakopee, Minnesota.
The financing package includes $14.1 million in 9% Low-Income Housing Tax Credit (LIHTC) equity and an $11.4 million bridge loan secured through Merchants Bank. Both contributions are aimed at supporting the development and construction of Prairie Pointe.
Developed by Minneapolis-based Beacon Interfaith Housing Collaborative, Prairie Pointe stands out as the only housing project in the area to offer on-site supportive services. The development will provide deeply affordable housing, with 28 of its units permanently designated for individuals experiencing homelessness and/or individuals with disabilities. The remaining 14 units will be income-restricted at 50% of Area Median Income (AMI).
Prairie Pointe will offer a mix of one-, two-, three-, and four-bedroom units to meet a variety of family needs. Beacon Interfaith, a longtime developer of affordable housing in the Twin Cities region, has already delivered 950 affordable homes and more than 400 units funded through LIHTC.
Construction of Prairie Pointe began in January 2025 and is expected to be completed by December 2025.
