PHILADELPHIA – September 14, 2023 – SCOPE Capital Group, LLC announced the execution of $16.055 million in financing for The Washington Apartments, a mixed-use asset with 72 residential units over 16,500 square feet of ground floor commercial space. The loan was funded by a regional bank to Trinity Realty Companies.
SCOPE Capital Group’s managing director Matthew Rosenberg negotiated the financing in collaboration with Craig Thom of SCOPE’s investment sales group.
The sponsor, Trinity Realty Companies, is a Philadelphia-based real estate development firm that focuses on multifamily and mixed-use projects in the Philadelphia metropolitan area.
The bridge-to-HUD loan was provided by a regional balance sheet lender and features three years interest-only, SOFR index.
“Despite lender’s resistance to multifamily lease-up risk, we were able to arrange more aggressive terms than the existing debt fund construction lender, and alternative bridge debt funds,” adds Rosenberg. “The 36-month interest-only period has no prepayment penalty which allows for painless conversion to a long-term 35-year fixed HUD product that requires property seasoning. The HUD loan will allow the borrower to minimize the debt service coverage ratio more than any traditional lender, maximizing the LTV up to 80 percent. This is going to be a path for a lot of high levered projects that have begun or are entering the CO phase.”
Located at 2224-50 Germantown Avenue, the triangular build sits at the intersection of N 7th Street, Germantown Avenue, and W Dauphin Street within the Kensington neighborhood near Temple University. Leasing has commenced on the 72 one- and two-bedroom apartments with an average unit size of 881 square feet. The impressive amenity package includes a fitness studio, coworking and community lounge and business center, bicycle storage, and a roof deck. There is a lower-level parking garage with 52 parking spaces.
“The Washington is a pivotal project in a transitional neighborhood that is experiencing an influx of development overflow from adjacent neighborhoods,” says Thom. “The addition of commercial space and draw of residents will benefit the community as it bridges the Temple and Fishtown submarkets.”
ABOUT SCOPE CAPITAL GROUP
Scope Capital Group’s capabilities extend to sourcing the most competitive acquisition, bridge, construction, and permanent solutions. The capital is sourced through partnerships with various banks, credit unions, agencies, insurance companies, and alternative lenders. Rosenberg has secured correspondent licenses with agency and life insurance companies enabling Scope Capital Group to compete on a national scale.