BHI Lends $25M to Build Philly Resi Tower

GY Properties has landed $25.25 million of construction financing to build a multifamily asset in Philadelphia, Commercial Observer can first report.

BHI, the U.S. branch of Israel’s Bank Hapoalim (BKHYY), supplied the loan on GY Properties’ planned seven-story, 124-unit apartment building at 970 North Delaware Avenue in the Northern Liberties neighborhood of Philadelphia’s Center City section. The transaction marks  the development of the fifth and final tower in the 3-acre Five on Canal complex, with BHI previously providing financing for two other buildings in the project .

“We’re excited that GY Properties has chosen to partner with BHI again as they continue to develop Five on Canal and focus on generating unique offerings for the Philadelphia market,”  Ilana Druyan, senior vice president and head of international commercial real estate origination at BHI, said in a statement. 

GY Properties acquired the land, which includes four parcels, for roughly $25 million in 2019, according to the Philadelphia Business Journal, citing public records.The property is about two blocks south of The Fillmore concert venue and the Punch Line Philly comedy club. 

The five buildings at Five on Canal comprise 550 units with amenities that include a fitness center, yoga studio, coworking lounge and green rooftop.

“Five on Canal is a testament to our vision of providing luxurious yet affordable living in the heart of Philadelphia,” Doron Gelfand, founder and president of GY Properties, said in a statement. “We’re excited to bring this project to life.”

Andrew Coen can be reached at acoen@commercialobserver.com