February 5, 2016 [Philadelphia, PA] – Colliers International Capital Markets (CICM), a leading provider of commercial real estate finance and capital markets expertise, arranged $24 million of debt for the acquisition and redevelopment of the former West Philadelphia High School located at 4700 Walnut Street. The 442,200-square-foot, four story building will be converted to a 298 unit multifamily property. Kristopher Wood and John Banas, both Senior Vice Presidents/Directors in CICM’s Philadelphia office, arranged the loan.
“The borrower wanted to purchase and reposition the former school located in West Philadelphia near University City,” says Wood. “Getting a construction loan was challenging because this was the first development the New York developer had done in Philadelphia, and many thought the location was not ready for 298 new apartments. CICM sourced a loan from a national Real Estate lender who took the time to understand what was happening in University City and what a great opportunity such a large building afforded the developer to build.” Wood added.
“Many apartment operators are capitalizing on quality assets that present opportunities for adaptive reuse of older assets into great apartment buildings,” adds Banas.
The three year adjustable loan is interest only at Libor plus 3.75% and was done as a Section 47 Historic Tax Credit deal.