Developer Lands $173M In Construction Financing For Philly's Tallest Apartment Building
Pearl Properties has secured a pair of loans totaling $173M to build an apartment tower overlooking Rittenhouse Square.
At more than 500 feet, the Harper Square project will be the tallest rental apartment building in the city, according to a press release from Barings.
The investment manager provided a $113M construction loan for the project, alongside $60M in funding from Counterpointe Sustainable Real Estate through Philadelphia's commercial property assessed clean energy program.
The building, coming to a 19th Street site between Sansom and Chestnut streets, will include 267 units, 75% of which will have balconies. The site is across the street from The Harper, a multifamily complex Pearl completed in 2018. Pearl expects the new project to deliver in spring 2028.
The $60M loan is the largest C-PACE loan allocated in Pennsylvania since the state created its version of the program in 2018, according to Counterpointe CEO Eric Alini.
C-PACE is designed to help companies finance energy-efficiency efforts, water conservation projects and more, according to the Philadelphia Energy Authority.
“This project is not only a milestone for our company but a landmark for the city – a new icon that reflects the strength and vitality of Philadelphia’s Rittenhouse Square community,” Pearl Principal Reed Slogoff said of Harper Square in a statement.
Center City’s multifamily sector had a vacancy rate of 5.3% last quarter, according to CBRE. That was the highest of any submarket analyzed and above the 3.4% regional average. The brokerage found that there were 3,480 Center City apartments delivered in the 12 months ending Sept. 30.
Pearl’s portfolio already includes several Center City residential properties, including The Beacon at 1529 Walnut St. and The Latham at 135 S. 17th St.
The company also owns The Terrace at 1776 Benjamin Franklin Parkway, a former Embassy Suites Hotel that is being converted into 288 one-bedroom apartments. It bought the property from Pebblebrook Hotel Trust for $67M in 2018.
CORRECTION, NOV. 18, 9:30 A.M. ET: A previous version of this story had incorrect information about Harper Square's location.
