ACRES Originates $27M Construction Loan for Philadelphia Multifamily PropertyNOVEMBER 18, 2021
PHILADELPHIA – (November 18, 2021) – ACRES Capital Corp. (together with its subsidiaries, “ACRES”), a leading commercial real estate middle-market lender, has originated an approximately $27 million loan to fund the construction and stabilization of 1201 W. Girard Ave. (the “Property”), a 118,000-square-foot multifamily property located in Philadelphia, Pennsylvania. The loan is provided to OCF Realty LLC, a Philadelphia-based, community-focused real estate firm providing comprehensive services in development, property management, leasing and home buying and selling. The loan carries an initial term of 24 months.
“Philadelphia’s multifamily sector has remained resilient throughout the pandemic, and we expect this trend to continue as we return to normalcy,” said ACRES Chief Executive Officer and President Mark Fogel. “As the sixth most populous city in the U.S., Philly has much to offer in terms of diversity of employment, historical attractions and higher-education institutions. We look forward to providing a new, competitive housing option for the inhabitants of one of the top 25 largest economies in the country.”
1201 W. Girard Ave. will consist of 166 rental units, more than 94,000 square feet of net rentable area and 31 parking spaces. Once complete, the Property will supply the Poplar submarket of North Philadelphia with newly constructed apartments at an affordable price point, making it an attractive option for millennials and other young professionals. Temple University, which is one of the largest employers in Philadelphia, sits within a seven-minute walk of the project. Additionally, the project sits one block away from the Girard subway station on the SEPTA Broad Street Line, which provides access into Center City within eight minutes. The Poplar neighborhood has recently seen a significant amount of residential growth, and is within proximity to several restaurants, public transportation, schools, universities and public green spaces.
OCF Realty Owner Ori Feibush stated, “The 1201 W. Girard Ave. project will address the demand for affordable, well-located housing in Philadelphia that is easily accessible to public transportation and Center City. It was a pleasure working with the ACRES team, who was able to provide us with a creative and flexible financing package that will allow us to execute our business plan for the Property.”
Philadelphia is a top-10 U.S. market for the millennial cohort, partially due to its affordability and cultural foundation. As one of the most historic areas in the country, Philadelphia offers attractions such as the Liberty Bell, Presidential House, Second Bank of the United States, Betsy Ross House, Independence Hall, Congress Hall and much more. In addition to Temple University, the city is home to other well-respected educational institutions including the University of Pennsylvania and Drexel University, as well as 13 Fortune 500 companies such as Comcast Corporation, DuPont, Campbell Soup Company and Toll Brothers.
Brandon Fox of Cooper Horowitz LLC arranged the loan, and the deal was originated by Marty Reasoner of ACRES’ New York office.