PHILADELPHIA-Philadelphia Management & Cos. $22.6-million refinancing loan contains a condo-release provision for the 141-unit Warehouse Apartments on Filbert Street at Nine N Ninth Street. The funding is for a five-year term at a fixed rate of 5.25%. The lender is New York Community Bank.
David Fisher, VP and senior loan officer in the Iselin, NJ office of New York City-based Meridian Capital Group LLC, secured the loan. "The transaction includes a condo release provision to allow for conversion of the building to condominiums and to sell individual units," he says. "While this gives the borrower the option of condo-conversion," Fisher tells GlobeSt.com, "the owner is not marketing units now. That will depend on performance of the Center City condo market and is probably one and a half to two years away." Calls to Philadelphia Management were not returned.
The property consists of two joined, eight-story buildings. They have been converted over the past two years from the former warehouses of Strawbridge & Clothier and the May Co., and this loan replaces a construction loan and provides a more advantageous rate. The published rental rate for a two-bedroom unit is $1,740 a month, and the property is currently 100% leased, Fisher says.
Approximately two dozen of Philadelphia Management's 60 multifamily properties are in Philadelphia and consist largely of facilities that have been converted from industrial and office buildings along with redeveloped historical buildings. It also owns and/or manages multifamily properties in Florida, Maryland, Connecticut, Massachusetts and South Carolina.
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