Bank OZK, Lionheart Provide $120M Debt Package on Philly Mixed-Use Project
Lionheart Strategic Management contributed with a $12.5 million mezzanine loan.
Bank OZK and Lionheart Strategic Management have provided a combined $120 million in debt financing to a joint venture between J.P. Morgan Asset Management and Alterra Property Group for the construction of a mixed-use residential and commercial building just north of downtown Philadelphia, Commercial Observer has learned.
Bank OZK provided a $107.5 million senior loan, while Lionheart, a debt investment vehicle affiliated with owner and developer Fisher Brothers, doled out $12.5 million in mezzanine debt on the project, sources told CO.
Bank OZK declined to comment on the deal, and an official at Lionheart did not immediately respond to an emailed inquiry.
JLL‘s Kelly Gaines and Chad Orcutt represented the sponsors in the transaction, according to the firm.
Located at 510 North Broad Street in Philadelphia’s Callow Hill neighborhood, the $179 million project will feature 410 apartments as well as retail and other commercial space. It will be built on a 1.5-acre site that formerly hosted a Parkway Corp. parking lot. Sources said a significant section of the retail space is already in line to be occupied by a major national grocery store chain.
The development will sport a courtyard on the second floor that will be surrounded by 64,000 square feet of commercial office or retail space, and there will be 283 parking spaces across two levels of a subterranean parking garage, according to a post from last December by real estate advisory firm The Condo Shop, an affiliate of Austin, Texas-based Keller Williams Realty. It will also include 207 spaces for parking bicycles within the building.
There will be studio, one-, two- and three-bedroom residences, according to The Condo Shop’s website, and the seventh floor will house resident amenities — a fitness center and a game room — while the roof will have a large deck and a running track.
J.P. Morgan Asset Management declined to comment. Alterra Group could not be reached.