Acquisition Bridge Loan for Olde Kensington Land in Philadelphia, Pennsylvania

BridgeInvest, a direct CRE private lender, funded a $5.4 MM bridge loan for the purchase of a 77,880-square-foot development site in the Olde Kensington neighborhood of Philadelphia. The project has in-place approvals to be developed into a mix of townhomes and apartments totaling 190 units. The Sponsor is a Philadelphia-based developer focused on constructing high-density, affordable living for low- and middle-income households. The loan proceeds will allow them to complete the necessary environmental clean-up of the land prior to moving forward with development. The loan was sized based on the underlying collateral value, not just the purchase price, resulting in a leverage point of over 70% of the price. Due to the variety of potential exit strategies, the loan was structured to allow the Sponsor to simultaneously pursue the development or sale of separate portions of the property. BridgeInvest executed and closed the transaction in just one month to meet the acquisition deadline, in April 2021.