Leading financial services provider Merchants Capital announced $97.8 million in financing for the rehabilitation of Stuart Gardens, a 491-unit, two-phased affordable multifamily property in Newport News, Virginia. developed by Vitus Group.

Merchants Capital secured $62.8 million in U.S. Department of Housing and Urban Development (HUD) 221(d)(4) permanent financing and $35 million in equity bridge loans provided by Merchants Bank. Stuart Gardens’ capital stack also includes low-income housing tax credit and green and resilient retrofit program financing via HUD for energy-efficient improvements.

Stuart Gardens comprises 109 two-story buildings, with 489 of 491 units across both properties, 100% of the residential units, restricted to families earning 60% area median income. Constructed in 1940, it has been designated as a historic property by the Virginia Board of Historic Resources.

Upon completion, Stuart Gardens will offer updated one, two and three-bedroom apartments. Located in a mixed-use neighborhood southeast of downtown Newport News, Stuart Gardens sits within a 1.5-mile radius of schools, public transportation, recreation areas, fire and police stations and grocery stores.

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