Post Brothers Picks Up $170M for Philadelphia Luxury Project
The property will join three existing communities at a mixed-use campus.
Post Brothers has secured $170 million in construction financing from Affinius Capital to develop the 431-unit second phase of Piazza Alta, a Class A multifamily property located in Philadelphia’s Northern Liberties neighborhood. This portion is expected to be completed in 2027.
The financing was arranged by Russell Schildkraut of lender Ackman-Ziff Real Estate Group.
When completed, phase 2 will feature two buildings spanning eight and 16 stories in height, each with a mix of studios, one-, two- and three-bedroom units. The new buildings will be built on top of existing podiums, according to Philadelphia Business Journal. When combined with the 695 units in the first phase, Piazza Alta will have a total of 1,126 apartments upon completion.
The apartments will have premium finishes, stainless steel appliances, in-unit washers and dryers and unobstructed views of the Philadelphia skyline and Delaware River. Amenities will include a rooftop lap and lounge pool, grilling stations, fire pits, fitness and yoga center, dry saunas, a steam room, coworking spaces and bike storage.
Situated at the corner of Germantown Avenue and North Second Street, the property’s location will offer residents direct access to the Northern Liberties neighborhood and downtown Philadelphia. The development is located near the local elevated transit line at Girard Station on Broad Steet. It is about 2 miles from the Center City area.
Parts of The Piazza
Piazza Alta’s first phase consists of three buildings with five, 12 and 16 stories, located at 1099 Germantown Ave. The property, which opened in April 2023, was 97 percent leased as of June, PBJ reported. Piazza Alta is located within The Piazza, a 28-acre master-planned community within the Northern Liberties area developed by Post Brothers that features residential and retail uses as well as public gathering areas and a central green space.
Other multifamily developments in The Piazza include Montesino, an adaptive reuse conversion of a former brewery; Liberties Walk, which includes walk-up units and townhomes and Navona, a two-building mid-rise apartment asset.
Perry Katz, Affinius Capital’s senior vice president, said in prepared remarks Piazza Alta Phase II will build on the retail and amenities that were completed as part of the development’s first phase. He said the project aligns with the institutional real estate investment firm’s strategy of financing exceptional multifamily assets with top-tier sponsorship.
Post Brothers is led by CEO Michael Pestronk and President Matthew Pestronk. The brothers founded the Philadelphia-based firm in 2006. Since its inception, it has developed more than 30 properties containing 8,000 apartments and 700,000 square feet of office and retail space.
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Elsewhere in the city, Post Brothers is completing the first phase of One Thousand One, a luxury apartment project at Broad Street and Washington Avenue that began welcoming residents last year. The 630-unit first phase also includes a 44,000-square-foot grocery store.
In November 2022, Post Brothers received two loans to develop The Darien, a five-story, 212-unit market-rate project in the Poplar neighborhood. Lionheart Strategic Management provided $18.5 million in mezzanine debt and Bank OZK provided a nearly $53.8 million senior loan. The Darien was built next to another Post Brothers’ property, The Poplar, a 285-unit luxury adaptive reuse project built at the site of a former 19th century warehouse.
Affinius’ activities
Affinius Capital, which has $62 billion in gross assets under management, has a diversified portfolio across North America and Europe providing equity and credit. Last month, Prime Storage received a $156 million refinancing loan from the firm for three New York City self-storage properties totaling more than 7,200 units. Affinius Capital originated the loan, and 3650 Capital provided $36 million in mezzanine debt to the company to refinance assets in the Bronx, Queens and Brooklyn.
In July, Affinius Capital provided a $340 million loan to Sky Equity Group to refinance 313 Bond, a two-building, 603-unit Class A multifamily community under development in the Gowanus neighborhood in Brooklyn. The project will also include 51,600 square feet of retail space. The financing will be used to finish construction and lease-up until stabilization.
