Philadelphia Multifamily Wrap-Up – August 2020

Rendering of The Chestnut at University City. Image courtesy of SITIO architecture + urbanism

With the coronavirus pandemic still unfolding, Philadelphia saw some activity returning in August, when the city entered its green phase of reopening. However, the end of the month brought challenges for multifamily residents, as the statewide moratorium on evictions and foreclosures expired, with landlord-tenant courts set to reopen Sept. 2. Although the state had launched a rental assistance program in early July, many landlords had opted not to participate due to burdensome requirements. However, some measure of relief may be on the way, with the Centers for Disease Control and Prevention announcing a nationwide eviction ban through the end of the year in early September. Despite myriad uncertainties, the metro’s multifamily sector remained active, particularly in University City. Read our August selection of Philadelphia must-knows: 

1. DEVELOPMENT – 30-story University City tower opens for residents.

Exeter Property Group’s Chestnut at University City brought 405 new units to the neighborhood. EPG Urban Multifamily started construction on the project at 3720 Chestnut St. in January 2019. The unit mix features studio, one- and two-bedroom floorplans ranging from 486 to 1,186 square feet. Amenities include a conference room, coworking space, a game room and a fitness center. A sky lounge with a pool and deck were still under construction.

2. FINANCING – Harbor Group lands $86.9 million for Exton property.

Newmark Knight Frank provided the 10-year, Freddie Mac refinancing for the 405-unit Exton Crossing. Loan proceeds retired a $71.8 million acquisition loan from 2017 held by Capital One. Completed in 1998, the Class A property at 201 Iron Lake Drive comprises 64 two-story buildings across 55 acres. Its apartments range from one- to three-bedroom floorplans averaging 1,029 square feet. Amenities feature a swimming pool, clubhouse and fitness center.

3. DEAL – Philly’s tallest modular building changes hands.

Alterra Property Group sold the 141-unit LVL 4125 for $36 million one year after its completion. The LEED Certified, six-story asset at 4125 Chestnut St. has studio, one- and two-bedroom floorplans averaging 435 square feet. Amenities include a roof deck, gym and dog run. The property is close to the University of Pennsylvania, University of the Sciences and Penn Medicine. Another Alterra modular development, a $179 million project at 510 N. Broad St., received $120 million in construction financing in July.

4. FINANCING – Brick Capital finances luxury project.

Wilmington Savings Fund Society originated $20.5 million for the 88-unit 2nd Street Lofts, Yardi Matrix shows. The 75 percent loan-to-cost financing has a permanent conversion option to non-recourse. The building will rise six stories at 1701 N. Second St. in an Opportunity Zone at the border of the Olde Kensington and Fishtown neighborhoods. Amenities will include a roof deck and fitness center. Completion is slated for the summer of 2021.