Philadelphia Multifamily Wrap-Up – July 2020

Southern Land plans residential tower downtown. Alterra gets $120 million project financing. Here’s our selection of Philadelphia must-reads.
LVL North. Image courtesy of Lionheart

Philadelphia’s road to recovery could be longer than initially expected. After relaxing some of the lockdown restrictions in late June, the metro saw a surge of new coronavirus cases in mid-July, leading Governor Tom Wolf to put additional restrictions in place on businesses and extend the state’s eviction moratorium through the end of August. Philadelphia’s landlord-tenant court will also remain closed until at least September 2. Even amidst the pandemic, the metro’s multifamily market remained active, particularly in the development sector. Read our July selection of Philadelphia’s must-knows:

1. FINANCING – Alterra lands $120 million for downtown project.

The financing package included a $107.5 million senior loan from Bank OZK and $12.5 million in mezzanine financing from Lionheart Strategic Management. The developer will use the proceeds to build LVL North, a $179 million mixed-use project at 510 N. Broad St. Designed by JKRP Architects, the seven-story building will include 410 residential units, 110,000 square feet of commercial space across the first two floors and two levels of underground parking. Clemens Construction Co. will build the project using modular construction techniques.

2. DEVELOPMENT – 27-story apartment tower to rise in Center City.

Southern Land Co. filed plans to build a 299-unit community at 1608 Sansom St. near Rittenhouse Square, according to The Philadelphia Inquirer. The residential tower will replace an aging four-story parking structure with a retail component. The planned development includes some 16,000 square feet of retail and restaurant space on its first two floors as well as an underground garage.

3. PEOPLE – CBRE Capital Markets appoints new EVP.

The brokerage firm promoted Senior Vice President Steven Doherty. In his new role, Doherty will oversee origination and underwriting of transactions involving Freddie Mac, Fannie Mae and life insurance companies throughout the market and nationwide. Doherty led the formation of CBRE’s Debt & Structured Finance group in Philadelphia in 2016. He has originated $4 billion in financing throughout his 30-year career and has managed banking offices with transactions exceeding $15 billion.

4. DEVELOPMENT – Max Levy building conversion begins.

Philly Office Retail started its residential redevelopment of the three-story, 26,665-square-foot historic factory, according to Philadelphia Business Journal. The $4.5 million conversion of the 1902-era building will deliver 32 one- and two-bedroom apartments to the Wayne Junction neighborhood. Penn Community Bank is financing the CA Architects-designed project. Philly Office acquired the property in 2012, investing in remediation and stabilization work to the structure. Penn Community Bank is providing construction financing.