Philadelphia may indeed be New York’s sixth borough in the eyes of investors and debt brokers.
Meridian Capital Group negotiated an $80.4 million Fannie Mae loan on behalf of Castle Rock Equity Group, a New York-based real estate fund, for its purchase of an upscale apartment building in Philadelphia’s Rittenhouse Square, Commercial Observer has learned.
Castle Rock acquired the landmark property, recently rebranded Icon 1616, from the Washington, D.C.-based real estate investment firm Federal Capital Partners for $112 million on June 12, according to two people familiar with the matter.
The 10-year loan, originated by Berkadia Commercial Mortgage, carries a fixed interest rate of 4.06 percent and a 30-year amortization schedule, according to Meridian Managing Director David Hayum and Associate Steve Edelstein, who negotiated the debt deal.
“The loan required a significant amount of structure to allow the sponsor to execute their business plan,” Mr. Hayum told CO. “Given the outstanding sponsorship team, Meridian was able to negotiate optimal terms while still accounting for specific lender requirements.” He declined to comment on the details of the acquisition.
The 25-story property, located at 1616 Walnut Street, consists of 206 rental units, 24,000 square feet of ground-floor retail space and 110 parking spaces. The building’s retail tenants include Santander Bank, CKO Kickboxing and the fashion retailer Theory.
Icon 1616, which has an Art Deco façade and lobby, contains a sky deck with a grilling station, herb garden, and fireplace, among other amenities.
The property was constructed as an office building in 1929 and converted into high-end apartments in 2014.
Representatives for Castle Rock Equity Group and Berkadia Commercial Mortgage were unavailable for comment.