Thorofare Capital Lends $17M on Philly Apartment Project

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Trinity Realty Companies has landed $17 million in construction financing to build a mixed-use multifamily project in Philadelphia near Temple University, Commercial Observer has learned.

Thorofare Capital provided the non-recourse loan at a 75 percent loan-to-cost for Germantown, a planned 72-unit apartment development with 16,339 square feet of retail. Meridian Capital Group arranged the transaction with a team led by Israel Leiner.

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Located at 2224-2250 Germantown Avenue in North Philadelphia’s Norris Square neighborhood, the project is slated to take 24 months to complete and lease up. The development will feature on-site building amenities that include bike storage, fitness room, tenant lounge, business center, storage lockers and roof deck. Trinity is also planning to construct a lower-level parking garage with a maximum capacity of 52 parking spaces.

Germantown Living marks Thorofare’s third financing in Philadelphia for 2021 and first ground-up construction project in the city.

“We continue to believe this market offers attractive risk-adjusted returns compared to other big cities and we hope to continue our expansion in Philadelphia in 2022 and beyond,” said David Perlman, a managing director at Thorofare Capital. “We are also attracted to these transitional residential submarkets and seek out developers with experience developing and leasing up these type of multifamily projects.”

Perlman noted that the Norris Square neighborhood has seen a recent influx of millennials with 12.9 percent of its population in a half-mile radius now composed of college graduates between ages 25 and 30. The Germantown Living property is 0.6 miles from Temple University’s campus and three miles from Downtown Philadelphia.

“Trinity is excited to play a part in bringing more residents and retail to options to this underserved stretch of Germantown Avenue,” said Eugene Umansky, managing partner at Trinity Realty Companies. “We give a big thank you to to Meridian and Thorofare for helping us develop our largest project to date.”

Andrew Coen can be reached at acoen@commercialobserver.com.