The Philadelphia Housing Authority broke ground on the first phase of its Westpark Apartments redevelopment earlier this month with financing from M&T Bank.
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The $138M financing deal for the project overlooking the Market-Frankford Line station at 46th Street was revealed in a social media post from the bank and first reported Wednesday by Commercial Observer.
It includes a $62.1M construction loan, a $30.2M tax credit backed by the federal low-income housing tax credit program and $45.2M from Freddie Mac.
M&T’s Drew Kessler, Robert Nichols and Sean Cullen helped coordinate the funding.
Westpark’s first phase will include 327 units, 140 of which are earmarked for former residents of the property’s three vacant high-rises that are being repurposed. The previous iteration of the complex had limited connectivity to the surrounding neighborhood.
“The development will be integrated back into the city streetscape,” PHA CEO Kelvin Jeremiah said at the March 2 groundbreaking ceremony. “No longer will it be an urban enclave, a superblock.”
SALES
New York City-based Extell Development Co. has purchased the former headquarters of insurance company Chubb at 436 Walnut St. in Old City, The Philadelphia Inquirer reported. The 330K SF building sold for $30M, which is less than its assessed value in city property records.
The buyer is known for building residential skyscrapers around Central Park, but it hasn't yet said whether it will pursue a residential conversion or retain the offices in the Walnut Street building, which is over 100 years old.
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An affiliate of New Jersey-based GHM Properties LLC purchased the 120-room Hampton Inn Downingtown/Exton last month for about $4.5M, the Philadelphia Business Journal reported. The $37K-per-room sale price is less than the regional average of about $101K, PBJ reported.
CONSTRUCTION AND DEVELOPMENT
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Hankin Group has broken ground on the seventh apartment building at its Keva Flats complex in Exton. The 72 new units will bring the complex’s total to 266. Move-ins are expected to begin in spring 2027.
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Preleasing is underway for Berger Communities’ Wayne Station complex at 150 Lancaster Ave. in Delaware County. The 24 units under construction will be above a 10K SF ground-floor retail space.
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Velocity Venture Partners is almost done renovating a 120K SF industrial property in Camden County, according to a social media post. A new roof, solar panels and LED lighting have been added to the property at 222 S. White Horse Pike in Stratford. Work is expected to wrap up next month.
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Prologis has been granted permission to convert a 1M SF Lehigh Valley warehouse into a data center, WFMZ reported. The Allen Township Board of Supervisors greenlit the plan for 2500 Liberty Drive on Tuesday night.
FINANCING
Silverstein Properties, Cantor Fitzgerald and University Place Associates have secured a $122.1M refinancing loan for 3.0 University Place in West Philadelphia, Commercial Search reported. CGA Capital originated the financing for the 250K SF life sciences and office building. The loan is scheduled to mature in October 2056.
PEOPLE
Carl Fiebig has joined Newmark’s Philadelphia-based multifamily investment sales team as an executive managing director. The JLL alum will co-lead the unit alongside Erin Miller.
THIS AND THAT
With the DoubleTree Suites at 640 Fountain Road in Plymouth Meeting set for a residential conversion, the hotel’s furniture, fixtures, and food and beverage equipment are being sold off, More Than The Curve reported. Public sales start March 26. The hotel will be open for those purposes between 10 a.m. and 5 p.m. Monday through Saturday until everything is sold.
