D2 Capital Advisors Secures $35.8M Financing for Somerset Phase II Multifamily Development in Philadelphia
D2 Capital Advisors has arranged a $35,830,000 construction financing package for Somerset Phase II, the second phase of Riverwards Group's multifamily development at 2202 E. Somerset Street in Port Richmond, Philadelphia. The capital stack includes a $19,870,000 senior loan from Silver Heights Capital and $15,960,000 in C-PACE financing provided by Nuveen Green Capital. Combined with over $10 million in sponsor equity, the total project cost is approximately $46 million for a 170-unit development featuring studios, one- and two-bedroom units. The project benefits from a 10-year real estate tax abatement and will be constructed by Urban Renewal Builders. The financing was structured on a non-recourse basis to minimize the sponsor's cost of capital. Somerset Phase II is adjacent to Phase I, which was completed in May 2025 and sold for $58.1 million to the Philadelphia Housing Authority. With fewer residential building permits issued in recent years, the project aims to capitalize on reduced competition ahead of its early 2028 delivery. Riverwards Group has a strong track record with over 1,500 units delivered across multiple developments in Philadelphia's Riverwards neighborhoods since 2009. The financing was led by Jack Cortese and David Frankel of D2 Capital Advisors.
Topics: C-PACE financing financing announcement multifamily development