Merchants Capital Secures $100M+ for 523-Units at Two NYCHA PACT Housing Developments in New York City

Publication: YieldPRO

Leading financial services provider Merchants Capital announced more than $100 million in total financing for the acquisition, recapitalization and substantial rehabilitation of Metro North Plaza & Gaylord White Houses, a Permanent Affordability Commitment Together (PACT) project comprising two existing affordable housing developments and 523 units in New York City.

“With the preservation of more than 500 permanently affordable homes and the enhancement of social services to the East Harlem neighborhood of New York City, PACT partners are strengthening community in an enduring way,” said Mat Wambua, Vice Chairman and Executive Vice President of Agency Lending at Merchants Capital. “We celebrate the shared commitment to preserving and expanding affordable housing.”

Listed on the National Register of Historic places, Metro North Plaza and Gaylord White Houses comprise four residential buildings that have been converted to Project-Based Section 8 through the federal Rental Assistance Demonstration (RAD) program.

The PACT partner team, comprising The Community Builders, Inc. and Ascendant Neighborhood Development Corporation, will oversee the significant rehabilitation, involving improvements to unit and building interiors, systems and public spaces, façade and roof repair or replacement, new windows and elevators. Security upgrades and LED lighting will be implemented. The team will also provide expanded social services through The Community Builders’ Community Life team and existing on-site and local teams. MDG Design & Construction will serve as the general contractor, and Wavecrest Management will be the property manager.

The Community Builders (TCB) has built and rehabilitated more than 30,000 units of housing in more than 350 developments in 14 states. It champions the Community Life model, which creates homes, neighborhood amenities and opportunity initiatives for families, seniors and adults with disabilities.

Ascendant Neighborhood Development is an East Harlem-based non-profit that connects residents and community partners to build and preserve affordable housing and cultivate thriving, resilient neighborhoods. It has 2,178 units in development, has completed 22 historic redevelopments and operates 817 affordable apartments.

“This investment underscores TCB’s commitment to preserving and revitalizing affordable housing in New York City,” said Jesse Batus, Senior Vice President of Real Estate Development for The Community Builders. “Through PACT and RAD, we’re not only safeguarding more than 500 homes but also enhancing quality of life with modern upgrades and expanded social services. Together with our partners, we’re building stronger, more resilient communities for generations to come.”

“To advance a project as complex and transformative as the rehabilitation of Metro North Plaza and Gaylord White Houses requires collaboration with partners who are nimble, creative and passionate about improving the lives of public housing residents,” said Chris Cirillo, Executive Director/President of Ascendant Neighborhood Development Corporation. “TCB and Ascendant are grateful for our partnership with the team at Merchants Capital, who share our commitment to preserving these historic NYCHA developments and investing in the bright future of East Harlem.”

Upon completion, the development will offer 53 studio units, 272 one-bedroom units, 79 two-bedroom units, 77 three-bedroom units, 20 four-bedroom units, 15 five-bedroom units and seven units designated as non-residential or a super’s unit. PACT Metro North White Houses will include four community facilities, an outdoor playground and a common laundry facility.

The proposed construction rehab started in September 2025 and is expected to be completed in three years.

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