Merchants Capital has closed on $10.8 million in permanent financing for Floret Hill, a 121-unit affordable housing community planned in Lawrence, Kansas. The project is part of a broader city-backed initiative to increase the supply of affordable housing in the market.
The financing was structured as a Freddie Mac Unfunded Forward TEL loan, providing take-out capital for the new development once it is completed and stabilized. In addition to the agency loan, the capital stack for Floret Hill includes federal and state low-income housing tax credit equity, along with a combination of hard and soft debt financing to round out the funding package.
The City of Lawrence has played a significant role in advancing the project, donating 12 acres of land for the site and committing more than $1 million from its Affordable Housing Trust Funds. These contributions are intended to support the delivery of new income-restricted housing as part of the city’s ongoing effort to broaden housing options for residents.
Real estate development and management firm Wheatland Investments Group is building Floret Hill, which represents the company’s fourth project in Lawrence and its first affordable housing community on the city’s west side. The development expands Wheatland’s footprint in the area while adding dedicated affordable units in a submarket that has not previously had this type of community.
Floret Hill is planned as a garden-style multifamily property with one-, two-, and three-bedroom apartments distributed across 11 residential buildings. The design is intended to offer a neighborhood-style setting rather than a single, high-density structure, aligning with typical garden-style multifamily configurations.
The site is located near Langston Hughes Elementary School, Rock Chalk Park and the South Lawrence Trafficway Trail, providing residents with access to schools, recreational amenities and major transportation routes. This location is expected to support both daily convenience for residents and long-term demand for the property within the Lawrence rental market.
By combining agency permanent financing, tax credit equity and municipal support, the Floret Hill capital structure reflects a layered approach frequently used to deliver new affordable housing. The transaction highlights the continued role of Freddie Mac and specialized lenders such as Merchants Capital in financing income-restricted multifamily communities in partnership with local governments.
