Commercial property

JV secures $260 million Refi for mixed-use project in Philadelphia

Eastern market. Image courtesy of JLL

A joint venture between National Real Estate Advisors, JOSS real estate partners, SSH and young capital secured a $260 million refinancing loan for East Market, a multi-phase, mixed-use project in Philadelphia. Pacific Life Insurance Co. provided the funding, while JLL Capital Markets represented the joint venture.

East Market, stretching from Market to Chestnut and 11th to 12th Streets, takes up an entire city block and includes retail, dining, office, living and hospitality space. The project includes two multi-unit buildings comprising 562 units, as well as 120,000 square feet of retail, office redevelopment and 177 underground parking spaces. When complete, the property will comprise over 1 million square feet, with a total investment in excess of $1 billion.

A great development in the heart of the city

The housing component, comprising The Ludlow and The Girard at 1101 and 1199 Ludlow St., respectively, was completed in 2018 and 2019. The Ludlow comprises 322 units in a mix of bachelor, one- and two-bedroom floor plans. rooms ranging from 466 to 963 square feet, according to Yardi Matrix data. Le Girard offers 240 units in a mix of one- and two-bedroom floor plans ranging from 545 to 1,238 square feet, according to the same data provider. Community amenities at both properties include a fitness center, business center, clubhouse, playground, media room, and swimming pool. The Girard is LEED Silver certified.

The project also includes the adaptive reuse of a 1916 warehouse. The structure at 1100 Ludlow Street has been converted into 160,000 square feet of office space for lease, with floor plates measuring 25,257 square feet, according to data from CommercialEdge. Tenants include companies such as WeWork, Design Center Philadelphia, Kravet and Bright Light Design Center.

The East Market project also includes the redevelopment of a historic office building into a boutique hotel, as well as a 19-story medical building for Thomas Jefferson University and Jefferson Health. The skyscraper should centralize several clinical services in a specialized care pavilion.

Located in the central Market East neighborhood of Philadelphia, the development offers easy access to several regional SEPTA rail lines and multiple transportation options around the city. Philadelphia International Airport is located approximately 10 miles to the southwest. Several retail, employment, dining and entertainment options are available within a 1 mile radius.

Senior Managing Director Chad Orcutt and Partner Blaine Fleming led JLL Capital Markets’ debt advisory team representing the borrower.

Last month, another joint venture secured $500 million for a massive project in Philadelphia. Developed by Hilco Redevelopment and its partners, the Bellwether District is a 15 million square foot mixed-use industrial park in the southern part of the city. The campus should include space for life sciences, a research laboratory, as well as space for e-commerce and logistics.