Rockwood Capital and Société Générale Provide $312M Refinancing in Philadelphia
Post Brothers will refinance Piazza Alta, a 700-unit mixed-use residence
By Brian Pascus October 2, 2023 3:14 pm
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Post Brothers has secured $312 million in refinancing for Piazza Alta, the company’s mixed-use residential property in the Northern Liberties neighborhood in Philadelphia, Commercial Observer has learned.
Rockwood Capital and Société Générale provided the five-year, $312 million fixed-rate loan, which will refinance the first phase of the project. Ackman Ziff and Piper Sandler brokered the transaction.
This is the largest single-asset refinancing made on a market-rate property since August 2022, according to Post Brothers.
“We started the first moments of the project in March 2022, and leased nearly 700 apartments by July 2023,” Matthew Pestronk, co-founder and president of Post Brothers, told CO. “The market has certainly changed during that period, but we were able to get financing that worked for us and are pretty happy about that.”
The deal with Rockwood Capital and Société Générale came amid a narrow lending environment. Both originations and loans have dropped significantly in the last 12 months as interest rates have reached a 16-year high, commercial banks have largely pulled back since the Regional Banking Crisis of March 2023, and ongoing inflationary pressures have constrained development.
“We are pleased to have provided a creative capital solution in a tumultuous environment to refinance this premier residential development in a prime urban market like Philadelphia,” said Tim Hallock, managing director of Société Générale, in a statement. “Post Brothers is a top-tier sponsor and this is an exceptional asset that has outperformed in the Philadelphia and national markets.”
Located at 1099 Germantown Avenue in Northern Liberties, a neighborhood due north of Center City, Piazza Alta has generated strong demand since opening 15 months ago.
The building has completed the lease-up of all 695 units and 37,000 square feet of retail space. A second phase of construction on the lot will eventually bring more than 1,100 rental units onto the market between both buildings.
Building amenities include a rooftop pool deck, indoor gym, large-scale coworking space, and views of the Philadelphia skyline and Delaware River.
Founded in 2006, Post Brothers has developed more than 30 properties, 8,000 apartment units, and 700,000 square feet of complementary office or retail, according to the firm’s website. Post Brothers currently has residences available in Philadelphia, Northern New Jersey and the Washington, D.C. area.
“I think what we look for is the opportunity to fulfill an unmet niche in the market,” said Pestronk. “[We aim to] provide a rental project superior to anything that does exist in a given location or submarket.”
Brian Pascus can be reached at bpascus@commercialobserver.com.
