Philadelphia’s First Affordable Housing Property for Seniors Celebrates Anniversary

Financing arranged by Berkadia allowed for a renovation in advance of the community’s 50th anniversary.

By Adriana Pop

PhiladelphiaBerkadia has secured financing for the 288-unit Casa Farnese, Philadelphia’s first affordable housing community for seniors.

Casa Farnese in Philadelphia
Casa Farnese in Philadelphia

The loan, which allowed for a renovation in advance of the property’s upcoming 50th anniversary, was arranged on behalf of Casa Farnese Inc. and supervised by the property’s management firm, PRD Management.

Senior Managing Director Kevin Kozminske, who was named Berkadia’s office leader for St. Louis in May, worked with Managing Director Brian Campbell of the Philadelphia office to arrange two loans through Berkadia’s partnership with HUD: an approximately $7 million loan under section 207/223(f) and a $4.1 million loan under section 241(a) to finance improvements to the community. The non-recourse loans, which provided 90 percent loan-to-cost financing and held 35-year amortization schedules, were closed in September 2013.

The structure of these loans allowed PRD’s nonprofit board administration to complete a $9.7 million rehabilitation effort while meeting the first mortgage’s payment terms. Gilbane Building Co., the project’s general contractor, finalized renovations to the 18-story building, which included a large glass lobby, in March of this year.

The property is situated in Center City, in the heart of the vibrant Washington Square West neighborhood, offering easy access to shopping, restaurants, libraries, theaters and public transportation.

“Our team is committed to identifying and securing competitive terms for the properties and projects that fuel our clients’ passions,” Kozminske said in prepared remarks. “We’re thrilled to be involved with such an important revitalization project and wish Casa Farnese another 50-plus years of success.”

“Casa Farnese opened when the Baby Boomer generation was just entering college, and we were able to provide housing to their grandparents and their parents,” noted PRD Chairman James McGrath. “Now, 50 years later, with the financial help of Berkadia, we’ve renovated Casa Farnese for the next wave of seniors—our retiring Boomer population. This project will allow our legacy of service and excellence to continue over the next 50 years for future generations to come.”

The 50th anniversary will be celebrated with an on-site re-dedication ceremony on Oct. 5, during which Berkadia will be recognized as a gold sponsor.

Image courtesy of Casa Farnese Inc.