National Development Secures $57 Million Construction Loan from Wells Fargo for Second East Market Residential Tower
National Real Estate Development, LLC (“National Development”) today announced the closing of a $57 million loan with Wells Fargo & Company (NYSE: WFC) to finance the construction of a second residential tower within the highly anticipated East Market project owned by National Real Estate Advisors, LLC, Joss Realty Partners, Young Capital LLC and SSH Real Estate. After providing an initial $38.5 million loan to finance construction on the office building at 1100 Ludlow, this loan marks the second commitment that Wells Fargo has made in the transformative 4.3 acre Center City development. Located at 1199 Ludlow Street, the new 20-floor tower will be built above a two-story retail base and will house 240 new residential units.
“We are excited to again partner with Wells Fargo at East Market,” said Daniel Killinger, Managing Director of Development, National Development. “Wells Fargo’s commitment allows us to begin our second residential tower that will bring an additional 240 residential units to the neighborhood. This tower will complement the residential units delivering this summer at The Ludlow and help bring a critical mass of residents to East Market’s dynamic new neighborhood.”
Rising above the corner of 12th and Market Streets, East Market’s second residential tower will offer 233,000 square feet of new residential units and cater to established professionals, couples and families in search of a dynamic city experience. It will feature one- and two-bedroom apartments, with slightly larger units than its project counterpart, The Ludlow. The tower’s sophisticated list of amenities will include a sun deck; 25-yard, four-lane lap pool; state-of-the-art gym and on-demand fitness studio; indoor play room and outdoor play area for children; sunken dog run; library; conference center; lounge; screening room; billiards room; indoor/outdoor climate-controlled loggia; demo kitchen; community vegetable gardens; grilling stations and fire pits.
“We are excited to deepen our support of East Market by financing 1199 Ludlow,” said Bill Jordan, Senior Vice President, Wells Fargo Commercial Real Estate. “We believe that National Real Estate Development is creating a transformative mixed-use project that enhances the vibrancy of the surrounding neighborhood. We look forward to seeing how the restaurants, apartments, office and retail develop over time.”
The tower will be designed in tandem by Morris Adjmi Architects and Bower Lewis Thrower (BLT) Architects with Clemens Construction serving as the building’s general contractor. Morris Adjmi and BLT also designed the office building at 1100 Ludlow and BLT designed the first residential tower, The Ludlow, at East Market.
The first phase of East Market, which is well underway, includes 175,000 square feet of modern warehouse office space in 1100 Ludlow; 322 apartments in The Ludlow; and 130,000 square feet of retail and restaurant space. In February, National Development announced that Iron Hill Brewery & Restaurant, the Mid-Atlantic region’s most awarded collection of brewpubs, will be the first tenant in the second residential tower’s retail base. 1100 Ludlow will serve as home to gourmet grocer MOM’s Organic Market, The Design Center and the award-winning architecture firm, Bohlin Cywinski Jackson. The Ludlow will be home to national retailer Design Within Reach.
About Wells Fargo
Wells Fargo & Company (NYSE: WFC) is a diversified, community-based financial services company with $1.9 trillion in assets. Founded in 1852 and headquartered in San Francisco, Wells Fargo provides banking, insurance, investments, mortgage, and consumer and commercial finance through more than 8,600 locations, 13,000 ATMs, the internet (wellsfargo.com) and mobile banking, and has offices in 42 countries and territories to support customers who conduct business in the global economy. With approximately 269,000 team members, Wells Fargo serves one in three households in the United States. Wells Fargo & Company was ranked No. 27 on Fortune’s 2016 rankings of America’s largest corporations. Wells Fargo’s vision is to satisfy our customers’ financial needs and help them succeed financially. News, insights and perspectives from Wells Fargo are also available at Wells Fargo Stories.
About East Market
East Market, a pedestrian oriented development in the heart of Philadelphia, aims to revitalize an entire city block, from Market to Chestnut, 11th to 12th Streets. This mixed-used project will blend urban and artisanal shopping and dining experiences with contemporary work and living spaces. The project is owned by National Real Estate Advisors, LLC, an SEC-registered asset management advisor investing in major U.S. urban markets and subsidiary of the National Electrical Benefit Fund; Joss Realty Partners, a New York-based private real estate investment firm; Young Capital LLC, a Philadelphia-based real estate investment firm affiliated with Classic Management, Inc.; and SSH Real Estate, one of the largest privately held commercial real estate companies in the Greater Philadelphia Region. East Market is being developed by National Real Estate Development, LLC.