PHILADELPHIA, Dec. 3, 2020 – Marcus & Millichap Capital Corp. (MMCC), a leading provider of commercial real estate financing and capital markets expertise, has announced the closing of a $4 million construction and mini-perm loan for The Penn Reading, a new five-story, 22,000-square-foot project in the rapidly developing East Kensington neighborhood of Philadelphia. The project, which pays homage to the region’s railroad history, includes 21 apartments and street-level retail space.
Local developers, Philly Capital Group (PCG), designed the Penn Reading building to incorporate the neighborhood’s rich history in more than name alone. The project is inspired by the area’s once-essential connection to the Philadelphia & Reading Railroad Company, which maintained several rail depots and warehouses nearby. Designed by Ambit Architecture of Queen Village, the building’s curved facade is a tribute to the railway roundhouse once located at the nearby Port Richmond terminal. Construction is underway, with completion and leasing activity expected during the first quarter of 2022.
“The Philadelphia multifamily market remains robust, given our relative price advantage over New York and D.C., the employment drivers of ‘eds and meds,’ and the city’s ability to provide both urban amenities and access to lower-density nearby suburbs,” said Sean Beuche, regional manager of Marcus & Millichap’s Philadelphia office and the firm’s Pennsylvania broker of record. “Even though multifamily remains a preferred asset class, the project’s financing had some hurdles to overcome and our clients needed a particular execution to make the deal work.”
MMCC, led locally by Director Stephen Arrivello, arranged the financing for PCG. “Despite many lenders having ceased new construction lending and showing a general reluctance to pursue additional construction amid uncertainty surrounding the COVID-19 pandemic, MMCC was able to source the right lender,” said Arrivello. “It was important to our client to achieve maximum leverage on this project, and while many lenders offered lower proceeds, we were able to deliver with an active and aggressive construction lender. Through our deep relationships with the area’s construction lenders, we sourced the absolute best terms and achieved pre-COVID leverage, satisfying the client’s needs.” Marcus & Millichap investment sales professional Zack Goldblatt participated in sourcing the loan opportunity.
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With more than 2,000 investment sales and financing professionals located throughout the United States and Canada, Marcus & Millichap is a leading specialist in commercial real estate investment sales, financing, research and advisory services. Founded in 1971, the firm closed 9,726 transactions in 2019 with a value of $49.7 billion. Marcus & Millichap has perfected a powerful system for marketing properties that combines investment specialization, local market expertise, the industry’s most comprehensive research, state-of-the-art technology, and relationships with the largest pool of qualified investors. To learn more, please visit: www.MarcusMillichap.com.