3650 Capital Provides $38M Construction Loan for Philadelphia Luxury Apartments
The new Viking Mill Apartments will reposition a 19th-century warehouse and add a new complex from scratch
By Brian Pascus November 11, 2025 3:36 pm
reprints
Chatham Bay Group, a Delaware-based real estate firm, has secured $37.5 million in senior construction financing to build Viking Mill Apartments, a 177-unit, luxury multifamily complex in Philadelphia, Commercial Observer can first report.
3650 Capital provided the financing out of its Real Estate Credit Solutions (RECS) platform, which will complete the construction and ensure the project is secure through delivery and stabilization after lease-up.
Global Real Estate Advisors’ Christopher Garzone, Ken Wellar and George Johnson arranged the loan.
Jonathan Roth, 3650 Capital co-founder and managing partner, said in a statement that the Philadelphia submarket of East Kensington, where Viking Mill will be located, is a “high-growth” neighborhood that has seen an increased demand for “high-quality housing.”
He also noted that the finished Viking Mill will feature two buildings and blend the historic architecture of East Kensington with a more modern design by renovating a derelict 19th-century mill into loft-style apartments and building another residential building from scratch.
“We look forward to building a strong relationship with Chatham Bay Group and believe the property will yield strong results and provide the community with an exceptional residential experience,” Roth added.
Located at 2019-2055 East Boston Street, Viking Mill Apartments will feature 77 lofts in the redesigned mill and 100 units in the ground-up construction building. Construction will require two phases, and is expected to be finished initially in the first quarter of 2026 and then the rest in the fourth quarter.
The two-building apartment complex will feature 7,750 square feet of ground-floor retail and include a courtyard with 34 parking spaces for residents. Other amenities will include a sky deck, a rooftop pool, a hot tub, fire pits, a dog run and dog spa, a fitness center and a coworking lounge.
Patrick Duffy, founder and CEO of Chatham Bay, said in a statement that his firm actively sought out 3650 Capital as its lender on the transaction, despite not having borrowed from them before, due to the firm’s “relationship-driven” lending style.
“We have a long-standing respect for 3650, its founders and senior management team, and we’re excited to be working with them on a project as special as Viking Mill,” Duffy said.
Brian Pascus can be reached at bpascus@commercialobserver.com.
