114-unit multifamily property in Philadelphia’s Fishtown neighborhood closes capital stack with $10.6 million C-PACE loan

Minneapolis, Minnesota (Aug. 5, 2024) – PACE Loan Group (PLG) closed a $10.6 million C-PACE loan to complete the capital stack for the new construction of a 114-unit multifamily property in the Fishtown neighborhood of Philadelphia resulting from combining six vacant city lots. The project, at 1440 Front Street, has an expected completion date of June 2026.

Matthew McCormack, senior vice president, originations in PLG’s Chicago office, originated the loan and coordinated with PLG’s in-house underwriting and servicing teams to close the loan. “When a local bank backed out at the closing table, PLG worked with Nat Buono of JLL to bring a partner lender, Builders Capital, to complete the capital stack and deliver an attractive stretch senior execution at a nearly single-digit blended cost of capital,” he said.

The new construction project includes 2,083 sq. ft. of ground-level retail space that is expected to be occupied by a restaurant, five studios, 95 one-bedroom units, and 14 two-bedroom units featuring 17-foot ceilings, a green roof deck, fitness center, and business center. Builders Capital provided a $14 million construction loan.

The C-PACE proceeds will be used for the building envelope, energy-star windows, HVAC, lighting systems, and mechanical systems and are expected to save $49,644 annually.

The Fishtown neighborhood is northeast from downtown Philadelphia, near Temple University and within walking distance of all forms of mass transit, including the elevated South Southeastern Pennsylvania Transit Authority ("SEPTA") tracks of the Market-Frankford Line.