New York Community Bank originated an $88 million loan to refinance a local developer’s leasehold interest in a mixed-use property that spans three acres in Philadelphia, Commercial Observer has learned.
The five-year loan on The Left Bank, provided to Philadelphia-based Dranoff Properties, carries an interest rate of 3.38 percent, a source familiar with the deal confirmed.
Meridian Capital Group Managing Director David Cohen and Senior Vice President Max Beyderman, of the brokerage’s Iselin, N.J. office, negotiated the debt deal on behalf of the borrower.
“Meridian was able to quickly rate lock the loan at application to protect the sponsor from treasury volatility,” Mr. Beyderman said. “Further, by coordinating efficiently with all parties to underwrite the ground lease structure and various income streams, we closed the loan in under 45 days.”
The property sits at 3131 Walnut Street in University City, adjacent to the University of Pennsylvania and Drexel University campuses, and the 30th Street Station.
The Left Bank contains 282 apartments, 98,707 square feet of office space, 22,605 square feet of retail space and 259 parking spaces. The property also contains a rooftop deck, courtyard, gym and meeting rooms.
In 2001, the University of Pennsylvania selected Dranoff—which develops, owns and manages residential properties through Pennsylvania and New Jersey—to convert the building, which was originally built in 1929 to serve as the Pennsylvania Railroad Depot.
In recent months the Philadelphia market has seen an uptick in demand for financing for multifamily and condominium properties.
In June, Berkadia Commercial Mortgage provided the New York-based real estate fund Castle Rock Equity Group with an $80.4 million Fannie Mae loan for the purchase of a landmarked apartment building at 1616 Walnut Street, as CO previously reported.
In August, Union Life Labor Insurance Company provided Scannapieco Development Corporation with a $94.2 million construction loan for an ultra-luxury condo development at 500 Walnut Street in the city’s Historic District.
Representatives for Dranoff Properties and New York Community Bank declined to comment.