PHILADELPHIA, PA – Holliday Fenoglio Fowler, L.P. (HFF) announced today that it has arranged $53.426 million in preferred equity and construction financing for the development of 3201 Race Street, a 16-story, luxury high-rise apartment property in Philadelphia’s University City neighborhood.
HFF worked on behalf of the developer, Radnor Property Group, to arrange $18.076 million in preferred equity from a commingled fund managed by American Realty Advisors. In addition, HFF secured a $35.35 million construction loan for the newly-created partnership through the Santander Commercial Real Estate office in Philadelphia.
Due for completion in 2017, 3201 Race Street will have 164 one- and two-bedroom residential units averaging 680 square feet each and 13,837 square feet of ground floor commercial space, which will be occupied by childcare operator Nobel Learning Communities. Situated on a 0.68-acre site on the Drexel University campus, the property provides nearby access to Interstate 76, the Philadelphia Museum of Art and the 30th Street Station, which is the largest transportation hub in the region and the third busiest Amtrak station in the United States. In addition, the project is situated two blocks from the Innovation Neighborhood, which when complete, will add 6.5 million square feet of mixed-use space to the submarket.
The HFF deal team was led by managing director Ryan Ade and senior managing director Mark Thomson.
”HFF was very pleased to be involved in raising both equity and debt capital on behalf of Radnor Property Group,” said Ade. “We are excited to see this project come to fruition as University City continues to attract institutional capital from around the United States.”
About Radnor Property Group
Radnor Property Group (Radnor) is one of Pennsylvania’s leading real estate development companies with a focus on multifamily urban development and a specialty in forming public-private partnerships (PPPs) with non-profit institutions. Since its founding in 1999 by David Yeager, it has worked on more than four million square feet of development projects valued at approximately $400 million. During that time, Radnor has had ownership interest in approximately 900,000 square feet valued at approximately $210 million. The company specializes in complex urban projects involving ground lease arrangements, tax credits, public subsidy programs and brownfield projects. Radnor’s specialty in PPPs has resulted in a unique niche for the company resulting in numerous development opportunities in off-campus student housing, commercial office, childcare facilities, specialty retail and recreation centers. Radnor’s proficiency in federal and state programs has resulted in numerous urban infill development projects utilizing New Markets Tax Credits, Historic Tax Credits, state grant and low-interest loan programs.
About American Realty Advisors
With over $7.4 billion in assets under management, American Realty Advisors (American) is an investment manager to institutional investors and has provided real estate investment management services for more than 27 years utilizing core and value-added commingled funds and separate accounts. American acquires assets directly or provides equity, preferred equity, mezzanine debt, debt and hybrid debt to primary investors and developers operating throughout the United States for office, industrial, multifamily and retail properties. More information regarding American can be found at www.americanreal.com.
About HFF
HFF and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 22 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF.