Carmel-based Merchants Capital announced $70 million in financing for the new construction of Flats at Pinecreek in Elkhart.
Flats at Pinecreek is a 252-unit workforce housing development developed by Holladay Properties. Merchants Capital secured a $35 million Freddie Mac Forward Commitment permanent loan and a $35 million construction loan provided by Merchants Bank for Flats at Pinecreek.
Flats at Pinecreek will provide roughly 25% of its units between 60% and 80% area median income, with the remaining units at market rate. The development will be located on the southwest side of downtown near truck, trailer and RV manufacturers.
“Merchants is seeing demand across the country for affordable housing tailored to working professionals—it is very rewarding to meet Elkhart’s housing need with key capital stack financing, collaborating with Holladay Properties and partners to support the city’s growth,” said JW Demaree, Merchants Capital assistant vice president of originations, in a press release. “We look forward to seeing the positive impact that Flats at Pinecreek will have on local employers and throughout the greater community.”
Flats at Pinecreek includes seven three-story buildings, a clubhouse building and 126 one-bedroom units, 105 two-bedroom units and 21 three-bedroom units. Community amenities will include a fitness center, pool, pup park, dog washing stations, residential lounge and coffee bar, grill stations, mail and package delivery hub and gas fire pits.
Construction began in July 2025 and is expected to be completed in January 2027.
