ACRES Capital Originates $13M Loan to complete Ultra-Luxury Townhomes in Philadelphia, PA
Ultra-Luxury TownhomesMAY 19, 2020
PHILADELPHIA, PA (May 19, 2020) – ACRES Capital Corp. (together with its subsidiaries, “ACRES”), a leading commercial real estate middle-market lender, is pleased to announce that it has originated an approximate $13 million mid-construction loan to fund the completion of Moderna at Rittenhouse (the “Property”), located in the coveted neighborhood of Rittenhouse Square – Philadelphia. The Property will feature eight (8) ultra-luxury townhome units (two of which are pre-sold), each consisting of approximately 4,000sf of interior living space and over 1,000sf of private rooftop/deck space. Other unit features include, a private two-car garage, finished basement with high ceilings, two wet bars, rear deck, front balcony, and private elevator, with buyers enjoying a full 10-year tax abatement.
The loan carries an initial term of 12 months and is provided to repeat Sponsor, NRIA. NRIA is a leader in institutional-quality middle-market acquisition & development, focusing on luxury townhomes, condominiums, and [mixed-use] multifamily investment, in addition to certain structured credit strategies. The Sponsor has a 14+ year track-record developing across the Northeast with total projects valued in excess of $1.25Bn.
“Moderna at Rittenhouse is the only new townhouse development in the high barrier to entry Rittenhouse Square neighborhood of Philadelphia,” said ACRES President & Chief Executive Officer Mark Fogel. “This area is part of greater Center City, which has the third largest downtown residential population in the country behind only New York and Chicago. The project is a great addition to our mid-construction loan program where ACRES provides funding for construction projects near completion. We are excited to partner with our repeat Sponsor in bringing another highly demanded multifamily project to market.”
Coley O’Brien, Principal of NRIA stated, “… at the outset of the year the Project was roughly 70% complete, and with two (2) units pre-sold we found it prudent to refinance into a more efficient & flexible financing structure while [unit] demand increased. Of course, shortly following the initial due diligence process with ACRES everyone’s daily lives drastically changed, and in hindsight it was a blessing to choose a partner from our financing bench that isn’t specifically reliant on capital markets execution. As has been our past experience with ACRES – they provided certainty of execution so the project could (re)commence right when Philadelphia had the green light to restart construction projects citywide…”
The project is ideally located within Rittenhouse Square, Philadelphia’s premier residential address that consists mainly of high-rise, multi-family buildings surrounding the square and one of five public parks designed by William Penn for the city. Some of the area’s most exclusive boutiques and restaurants, in addition to, cultural and entertainment venues are within walking distance of the property, making this a highly desirable neighborhood to live in. This property benefits from an excellent transportation system that offers an attractive opportunity for professionals, young families, and downsizing empty nesters who are looking to reside close to work, take advantage of cultural and social attractions.