Freddie Mac Multifamily partnered with Optigo® lender Merchants Capital to help borrower Wheatland Investments Group develop Floret Hill — a future affordable housing community in the vibrant college town of Lawrence, Kansas.

Floret Hill will help bolster the supply of affordable rental housing options for local residents — creating 121 new apartments across 11 buildings, with 37 units restricted to residents earning up to 40% of the area median income (AMI) and 84 units restricted to 60% AMI. The apartments range from one-, two-, and three-bedrooms in size, and will offer residents a full range of amenities, including garage parking, a business center, fitness room, clubhouse, playground and more.

To help make this possible, Freddie Mac through our unfunded forward tax-exempt loan (TEL) program, agreed to provide a $10.8 million, 15-year, fixed-rate permanent loan following the completion of the project. The capital stack also includes the City of Lawrence, Federal Home Loan Bank of Topeka AHP Funds, and both state and federal Low-Income Housing Tax Credit (LIHTC) equity.

“Freddie Mac Multifamily’s Unfunded Forward TEL loan provided us a more cost effective and efficient execution, from the quote process through underwriting, rate lock to closing,” said Marsha Goff, Executive Vice President of Originations at Merchants Capital. “This certainty of execution, combined with Freddie Mac’s expertise in affordable housing, has led to smooth closings and our strong partnership. The Floret Hill transaction is an example of that collaboration, bringing 121 affordable apartments to Lawrence, Kansas.”

  • Carousel Image of Floret Hill Property

We're proud to partner with Merchants Capital, Wheatland Investment Group and local stakeholders to expand affordable housing options in Lawrence — and across the country.