Philadelphia Multifamily Wrap-Up – March 2020

Newly opened property lands $50 million loan. Co-living plans move forward. Read our March selection of Philadelphia's must-knows.
Philadelphia skyline. Image via Pixabay.com

Philadelphia’s multifamily sector began the month with modest activity, as several small sales closed and development plans moved forward. The second half of March saw activity nearly grind to a halt, however, as concerns around the novel coronavirus pandemic impacted the market following Governor Wolf’s directive for residents to stay at home and for nonessential businesses to shutter. Read our March selection of Philadelphia must-knows:

1. LOAN – Newly opened Bala Cynwyd community gets $50 million refi.

Nolen Properties received the 20-year, fixed-rate loan for 335 Bala, a 210-unit multifamily property, according to Philadelphia Business Journal. New York Life Real Estate Investors arranged the financing package. The Class A community at 335 Righters Ferry Road has two 11-story buildings with one- and two-bedroom apartments.

2. OPERATIONS – Renters and landlords feel the coronavirus pandemic’s impact.

As the global impact continues to grow, Pennsylvania renters face a difficult time: According to The Philadelphia Inquirer, more than half a million people across the state filed for unemployment benefits since businesses largely closed following Governor Wolf’s stay-at-home directive. Philadelphia’s renters now have some protections, thanks to a temporary stay on evictions, foreclosures and utility shutoffs. However, this leaves some landlords in a bind—many of the market’s owners may come to rely on federal assistance via mortgage relief from Fannie Mae and Freddie Mac.

3. DEAL – Rittenhouse Realty Advisors arranges three sales.

The brokerage firm facilitated the disposition of three communities totaling 37 units in the Rittenhouse Square and East Kensington neighborhoods. The assets are located at 2006 Walnut St., 2130-2132 Locust St. and 2136-2142 E. Dauphin St. and changed hands for a combined $10.9 million.

4. DEVELOPMENT – Quarters plans second Philly location.

The co-living company will operate the planned, six-story building’s 65 units at 1201 Callowhill St., according to OCF Realty. Patriot Parking presently operates the development site as a surface parking lot. JKRP Architects is designing the new project, which will include 4,000 square feet of retail space and 42 parking spaces in the basement. Quarters’ first Philadelphia location is underway at 1150 N. American St., 2 miles northeast.