Developers Scannell Properties and Pittman Investors have obtained financing for a multifamily property in the Indianapolis suburb of Zionsville, Ind. The Farm will be a 400-unit, Class A market-rate property. Merchants Capital has secured a Merchants Bank of Indiana construction loan on behalf of the development partners.
The Farm will be developed on 48 acres of land at the intersection of Sycamore Street and Michigan Road, also known as U.S. 421. In addition to its residences, the property will feature 225,000 square feet of retail and commercial space. Among the common-area amenities of The Farm will be covered bicycle parking.
The property’s design will be authentic to the history and character of Zionsville and will combine high quality with scale to fit well within the municipality, according to a statement.
“There were no challenges of note on the debt side of this transaction,” Anthony Cossell, transaction manager at Merchants Capital, told Multi-Housing News. “The unique nature of this property did not result in any financing hurdles or hiccups in the closing process either. The partners were a pleasure to work with, and the process from start to finish—from our perspective—was seamless.”
Merchants Capital served as a financing partner on The Farm alongside additional local entities. Among them were Lake City Bank and the National Bank of Indianapolis. Several months ago, Merchants supplied financing for another Hoosier State development, this one an affordable senior housing facility in East Chicago.
Boosting walkability
The Farm is Phase 1 of a larger Planned Urban Development project in the “Gateway District” of the Town of Zionsville. The objective of the urban project is to enhance pedestrian friendliness and accessibility for local residents by connecting multifamily residential communities with stores, restaurants and other services. Commercial development will be the focus of Phase 2.
There is a substantial undersupply of rental housing in Zionsville. The Farm’s early 2025 debut will deliver additional multifamily units to this suburban submarket of the Circle City. Pre-leasing is slated to launch in May 2023.
