SCOPE Capital secures $16.055M financing for The Washington Apartments, backed by Trinity Realty Cos
PHILADELPHIA, PA — 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 s/f of ground floor commercial space. The loan was funded by a regional bank to Trinity Realty Cos.
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,” said 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%. 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 Ave., the triangular build sits at the intersection of N 7th St., Germantown Ave., and W Dauphin St. within the Kensington neighborhood. Leasing has commenced on the 72 one- and two-bedroom apartments with an average unit size of 881 s/f.
“The Washington is a pivotal project in a transitional neighborhood that is experiencing an influx of development overflow from adjacent neighborhoods,” said Thom. “The addition of commercial space and draw of residents will benefit the community as it bridges the Temple and Fishtown submarkets.”