NYC Lender Enters Philly Market, Finances Deals For 2 Projects
New York-based lender S3 Capital's nationwide expansion plans have brought it to Philadelphia.
The lender provided nearly $25M of financing for two multifamily projects in the city in recent weeks.
That includes $11M for the construction of a 36-unit building at 3811 Main St. in Manayunk and $13.6M for the renovation of Spring Lofts, an established 73-unit adaptive reuse project at 1217-1235 Spring Garden St. in Callowhill.
“We are excited to expand the S3 lending platform into Philadelphia,” S3 Managing Director of Origination Steven Jemal said in a statement. “Many of the city’s submarkets have absorbed available supply in recent years, and show sustained demand for quality housing.”
He added that the company is looking to build relationships with developers across Pennsylvania.
The borrower on the Manayunk loan is Barry Faraj. His five-story mixed-use plan including nearly 4K SF of ground-floor retail is less than half a mile from SEPTA’s Wissahickon regional rail station and down the street from the neighborhood’s main commercial corridor.
The property last sold for $2.3M in December, according to city records. Its latest appraisal valued it at $620K.
An S3 spokesperson declined to reveal the sponsor for the Spring Lofts loan.
The first part of the complex spanning three historic buildings was constructed in 1904 as a machine factory called Bilgram Works. It was later expanded and hosted a variety of other industrial uses including a textile factory until its conversion into apartments began in 2003.
Arts & Crafts Holdings purchased the building for $15.7M in 2018. It last sold for $22.8M in 2022, according to city records.
S3, which specializes in bridge and construction loans, has a large presence in the New York City market where it is based.
The firm has also expanded into the Carolinas and South Florida, where it lent $350M to The Continuum Co. last month to build the Continuum Club & Residences West, a 36-story building with 236 condos in North Bay Village.
S3 closed its third fund in May. It exceeded the $650M target with $850M in discretionary commitments and $465M in co-investment guarantees.
