Post Brothers is working to set a new standard for amenities with Piazza Alta, a newly built Philadelphia apartment property.
Post Brothers, a Philadelphia-based multifamily investment and development company, knew it was a challenging market when it went out to refinance a construction loan on Piazza Alta, a nearly 700-unit luxury apartment property in suburban Philadelphia.
But the firm found that the property’s amenity package and overall quality was attractive to institutional quality lenders seeking to deploy capital in the multifamily market. Post Brothers was able to line up $312 million in financing from Societe Generale and Rockwood Capital. The transaction, according to data from New York-based MSCI Real Assets, was the largest single-asset financing on a market-rate property in the US in more than 14 months.
Tim Hallock, a managing director on Societe Generale’s commercial real estate team, told Real Estate Capital USA the Paris-based bank and Post Brothers have maintained a multi-year relationship financing several properties together and extended that after winning a competitive bid process for Piazza Alta’s debt assignment.
“The capital stack was driven by market feedback,” Hallock said. “Rockwood showed the same confidence in the borrower and property and was a great fit for the transaction.”
Piazza Alta, which opened its doors in mid-2022, represents a flagship multifamily offering in the Post Brothers portfolio.
Post Brothers breaks ground on Piazza Alta
The nearly 700-unit property opens its doors
Post Brothers obtains a $312 million refinancing package from Societe Generale and Rockwood Capital
All 695 apartments and 37,000 square feet of retail space were leased at the time of the October refinancing. In addition to studio and penthouse apartment units, the master-planned residential property also includes two pool clubs, a fitness center, co-working space and a dog park. The in-progress second phrase of project construction will add roughly 400 more units to the asset’s overall footprint.
“Piazza Alta is a highly amenitzed Class A multifamily property. The quality of this new construction deserved high-quality financing,” Hallock said. “This property stands out today as highly desirable for both residents and lenders, even with the changing markets.”
Societe Generale’s conviction in the asset mirrors sentiment seen across the US in situations where alternative lenders are stepping in to pick up opportunities and market share in place of US banks.
“The loan, with a compelling rate and innovative repayment terms, represents a creative solution to maximize capital at a high point in rates,” Hallock said. “Our team at Societe Generale will continue to pursue opportunities to do the same for similar exceptional properties.”