BridgeCity Capital Supplies $70M Loan for Philly Office-to-Resi Conversion
By Andrew Coen October 15, 2024 1:14 pm
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Developer Marvin Rubin has secured $70 million of construction financing for an office-to-residential conversion project in Philadelphia, Commercial Observer has learned.
BridgeCity Capital provided the loan on Rubin’s planned repositioning of the 13-story Public Ledger Building property in Philadelphia’s Center City neighborhood.
The project at 600 Chestnut Street, which is slated for completion in late 2025, will consist of 277 apartments and one retail unit, according to Louis Lebovits, CEO of BridgeCity.
“BridgeCity financed the office to residential conversion in Center City, Philadelphia, due to its exceptional location and robust partnership with a seasoned New York sponsorship team and experienced general contractor,” Lebovits said. “This combination ensures a high-quality project execution, while the prime location offers strong demand, accessibility and long-term value appreciation, making it a compelling investment opportunity.”
Greystone’s Shaya Ackerman and Donny Rosenberg arranged the transaction.
The 1927-built property encompasses 174,691 square feet, according to CompStak. Previous notable tenants in the now vacant property included Edmonds Eye Associates, architecture firm Looney Ricks Kiss and immigrant aid society HIAS.
Rubin acquired the property in 2018 for $32 million, according to BridgeCity. Carlyle Development Group had acquired the building for $58 million from LNR Partners in 2015, the Philadelphia Inquirer reported at the time.
Rubin and Greystone did not immediately return requests for comment.
BridgeCity has been active in the office-to-resi conversion sector this year.
In May, the lender originated $50.6 million of acquisition financing for Watermark Capital Group’s $66.5 million purchase of 175 Pearl Street, an eight-story office building in Brooklyn’s Dumbo neighborhood, with plans to convert it into a 238-unit multifamily development.
Andrew Coen can be reached at acoen@commercialobserver.com
