Post Brothers and Tower Investments have completed a US$400 million construction financing for one of the country’s largest residential development in Philadelphia. The funds will be used to build a 1.9 million-square-foot mixed-use building on Broad Street and Washington Avenue in Philadelphia. For the time being, construction on the mega-development known as Broad and Washington has only recently begun, and it will be built in phases. The $750 million project will comprise 1,457 apartments, more than 65,000 square feet of retail space on the main floor, and a parking garage when it is finished in 2026.
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The first phase, set to be completed in 2024, will include the construction of 600 apartments spread across four interconnected towers, as well as 50,000 square feet of ground-floor commercial space. Tower Investments founder and CEO Bart Blatstein, a native Philadelphian, has long suggested a residential complex at the site, and work is finally started with Post Brothers as a joint-venture development partner. The proposals for a 15-story skyscraper by Post Brothers and Tower Investment were authorized by Philadelphia’s Department of Licenses and Inspections in August 2021. Because of the project’s magnitude and complexity, “a capital stack that includes the most sophisticated capital sources in the industry today was necessary,” according to Ackman-Russell Ziff’s Schildkraut. He worked with Christine Zivkovic to negotiate the financing, which acts as a construction and project recapitalization loan.
Commentary on the Post Brothers Philadelphia development
“Post Brothers is recognized for providing the most amazing apartment living in only the most desired districts,” Blatstein said. “The Broad and Washington complex will establish a new national benchmark.” “We have done business with each of these lenders several times. It’s a large project, especially outside of New York City, where many buildings of this magnitude are being erected. We discovered that there was a lot of competition for the project, but we eventually chose lenders with whom we felt comfortable,” said Matt Pestronk, co-founder of Post Brothers.
