TWG Development has secured financing for a 188-unit workforce housing project in Indianapolis.
The Wesmont is being developed in an Opportunity Zone and repurposes a former industrial site. Construction is expected to be completed within 18 months.
Mortgage banking company Merchants Capital announced securing $25.5 million in funding for the development through a 10-year, Freddie Mac unfunded forward permanent loan on behalf of TWG Development.
Named after jazz guitarist Wes Montgomery, the project is funded through a combination of a conventional construction loan from Merchants Bank of Indiana paired with a forward-committed Freddie Mac non-low-income housing tax credit permanent loan. Additional funding sources include a private Opportunity Zone investment of approximately $4.6 million placed by Monarch Private Capital along with approximately $460,000 in Indiana Industrial Recovery Tax Credits. Known as the DINO tax credit, these credits provide an incentive for companies to invest in former industrial facilities requiring significant rehabilitation or remodeling expenses. In addition, the project was awarded a $1.47 million tax abatement that will be realized over 10 years.
The 188-unit development will provide 19 units for tenants at or below 60% of the area median income (AMI), 19 units for tenants at or below 80% AMI, and 132 units for tenants at or below 100% AMI. The remaining 18 units are set at market rates.
The apartment homes will feature a common lounge area with a full kitchen, free Wi-Fi, a 24/7 fitness center, a business center, and an outdoor pool with a private pool deck and a grilling area. High-end unit finishes include granite countertops, stainless steel appliances, tile backsplashes, spa-inspired bathrooms, and private balconies.
TWG Development in partnership with Monarch Private Capital finalized the loan structure and successful closing earlier this year.