Funding for a $51 million affordable senior housing development in East Chicago has been secured by several investors.
Lakeshore Manor will be built on the city's northwest side, with help from Merchants Capital, Merchants Bank of Indiana and Cinnaire. The project will include two four-story buildings.
The 206 one- and two-bedroom apartments for seniors 62 and older and disabled residents will be rent controlled at 60% of the area's median income.
- Carmel-based Merchants Capital secured $15.5 million from the U.S. Department of Housing and Urban Development.
- Merchants Bank of Indiana, parent company of Merchants Capital, secured a $13.5 million equity bridge loan.
- Cinnaire provided $21.7 million as a Low Income Housing Tax Credit, which is an incentive for private investors to receive a federal tax credit for affordable housing investments.
“Lakeshore Manor is a critical piece of the redevelopment landscape in East Chicago, and we are proud to have partnered on this important housing project for seniors in the community,” said Brian Shelbourne, vice president of originations at Merchants Capital, in a press release.
The development, which is on the corner of 136th and Main streets, is a replacement for the demolished John B. Nicosia senior building. It will be completely new construction.
Twelve of the 206 apartments will be fully accessible, hearing-impaired units that will comply with the American with Disabilities Act and Uniform Federal Accessibility Standards requirements.
“We are so pleased to be a solution to a senior housing need in East Chicago Indiana,” said Ezra Burdix, president at DTM Real Estate, in a press release. “We believe that good, safe housing is the first line of defense to good health and healthier outcomes.”
DTM, a development, acquisition and management firm based in Indianapolis, closed the project.
The city of East Chicago has targeted the area in an ongoing effort to improve public spaces in the North Harbor Redevelopment Area. Improvements include streets, playgrounds, parks and concert stages.
“We remain focused on creating housing opportunities to ensure seniors can live affordably in the communities they call home,” said Keith Broadnax, Cinnaire senior vice president of business development.
The project is scheduled for completion in early 2024.