Merchants Capital has closed more than $99 million in debt and tax credit equity financing for The Elex, a mixed-use, mixed-income workforce housing community in Fort Wayne, Indiana. The 296-unit property is now leasing and is positioned as part of a broader redevelopment effort on the historic Electric Works site.
The Elex has been developed by Biggs Group in partnership with Ancora, Weigand Construction and MSquared. The project is one component of Electric Works, a former General Electric industrial campus that has been transformed through a multi-phase redevelopment program. The larger site celebrated its grand opening last month, marking a notable milestone in the ongoing repositioning of the legacy industrial property.
To support the capital stack for The Elex, Merchants Capital arranged and secured a $34,400,000 Freddie Mac Non-LIHTC Forward permanent loan. In addition to the agency loan execution, the firm provided $9,500,000 in federal low-income housing tax credit equity, supplying a key source of capital to support the project’s affordable housing component.
Merchants Bank supplemented the permanent and tax credit financing with $55,500,000 in construction and equity bridge financing. This short-term capital is intended to fund construction and bridge the period until stabilization and full deployment of the permanent capital sources. In aggregate, these elements bring the total debt and tax credit equity package for The Elex to approximately $99,400,000.
The community offers a mix of one-, two- and three-bedroom residences. Of the 296 units, 207 are designated as market-rate apartments, while 89 are reserved as affordable units supported by the federal low-income housing tax credit equity. This blend is intended to address workforce housing needs while integrating income diversity within the broader Electric Works redevelopment.
Commenting on the transaction, Jeff Spahn, senior vice president of originations at Merchants Capital, noted that the firm tailored its financing approach to the specific complexity of The Elex and its role within the larger campus. He emphasized that the financing supports an initiative aimed at enhancing the surrounding community and acknowledged the efforts of Biggs Group, Ancora and the City of Fort Wayne in reaching this stage of the project.
Spahn also referenced the broader Electric Works redevelopment, indicating that the city’s growth prospects are tied in part to the continued build-out of the campus. The Elex, as part of the third phase of the overall plan, adds a workforce housing component to a site that historically served as a major industrial hub and is now being repositioned as a contemporary mixed-use district.
