Merchants Capital has arranged forward-committed permanent financing for Central at Old Southside, a new income-restricted multifamily community planned in Indianapolis, Indiana. The firm announced that it secured $30.7 million in cash-backed Freddie Mac Forward TEL financing to support development of the property, which is being led by The Annex Group.
Central at Old Southside is structured as a 4% low-income housing tax credit multifamily project and will deliver 227 rental units upon completion. The financing is designed as a forward commitment, providing permanent loan proceeds once the development has been constructed and stabilized. Merchants Capital is positioning the Freddie Mac execution as a long-term, cash-backed solution for the project.
Nick Miller, Assistant Vice President of Originations at Merchants Capital, said the addition of more than 200 affordable homes is expected to have a meaningful and lasting impact on the Old Southside neighborhood. He noted that demand for quality, affordable housing in the area remains significant, framing the financing as an important step toward meeting that need.
The Annex Group, based in Fishers, Indiana, is serving as the multifamily housing developer for Central at Old Southside. The company reports a portfolio of multifamily communities valued at more than $600 million and has overseen in excess of $1.1 billion in single-family, multifamily, mixed-use and other commercial projects. Its track record includes both redevelopment assignments and ground-up construction.
Plans for Central at Old Southside call for two garden-style, four-story residential buildings. The community will offer one-, two- and three-bedroom apartments, all delivered within the LIHTC framework described for the project. With a forward Freddie Mac TEL in place, the capital stack for the development includes a committed permanent debt component aligned with the project’s affordable housing focus.
Construction on Central at Old Southside is scheduled to begin in 2026. The development timeline anticipates a build-out period of roughly two years, with completion expected in 2028. Once delivered, the community will expand the inventory of affordable multifamily housing in the Old Southside neighborhood of Indianapolis, adding several hundred income-restricted units to the local supply.
The Annex Group’s involvement reflects its broader emphasis on multifamily housing, while Merchants Capital’s role underscores the continued use of agency forward commitments to finance LIHTC-based developments. Together, the parties are advancing a project that aligns long-term permanent debt with the creation of new affordable rental housing in Indianapolis.
