D2 Capital Advisors Facilitates $37 Million Construction Financing for New Multifamily Development in Philadelphia
D2 Capital Advisors (D2CA) has successfully orchestrated a substantial financing package totaling $37 million for a new construction project located at 2507 Almond Street in Philadelphia's Olde Richmond neighborhood. This ambitious development will feature 155 residential units across six stories, with a diverse mix of configurations including 119 studios, 24 one-bedroom apartments, and 12 two-bedroom residences. In addition, the facility will offer essential amenities like 63 parking spaces, a rooftop deck providing stunning skyline and river vistas, a green roof, and dedicated bike parking facilities.
The financing consists of two main components: a $20 million senior construction loan provided by Silver Heights Capital and an additional $17.3 million in Commercial Property Assessed Clean Energy (C-PACE) financing courtesy of Nuveen Green Capital. This strategic arrangement was facilitated by D2CA on behalf of the Riverwards Group, a real estate firm led by Mo Rushdy and Larry McKnight, both experienced principals in the industry.
Jack Cortese and David Frankel of D2CA played pivotal roles in securing both financing branches, designed to optimize the project's funding while minimizing the overall cost of capital for the developer. Cortese noted, "Despite the prevailing narrative of oversupply and slower absorption rates in Philadelphia's multifamily market, our local insights painted a different picture. Leasing activity in the Northern Liberties, Fishtown, and Olde Richmond areas has been rising, while new construction projects have plateaued. This discrepancy enabled us to present a compelling case for financing that resonated with lenders."
The location of the Almond Street project sits within a vibrant submarket that is transitioning through its absorption cycle, particularly following a surge in supply from 2023 to 2025. City-wide leasing rates have begun to outstrip new deliveries for the first time in over three years, with 2026 witnessing a significant decline in new construction starts. First quarter deliveries for that year were the lowest in recent memory, and full-year completions are projected to hover around 7,000 units—far lower than the 2024-2025 figures.
As the immediate submarket experiences a significant reduction in available units—following a peak vacancy rate during the previous supply wave—the timing of the 2507 Almond Street development is poised to enter the market favorably, avoiding competition from an influx of new properties. Scheduled for delivery in early 2028, this project is strategically positioned to address the growing demand for housing in a recovering market.
With a track record stretching back to 2009, Riverwards Group has established itself as a robust full-service developer within Philadelphia’s Riverwards neighborhoods, having successfully delivered over 1,500 housing units and multifamily developments, including notable projects like Somerset Station and Kensington Courts. The company operates on an integrated model that encompasses development, design, and construction processes, enhancing its ability to respond to market needs effectively.
"We engaged D2 Capital Advisors with a clear objective: to secure a non-recourse financing solution that expands our range of lending relationships beyond our established local banks," stated Mo Rushdy, Principal of Riverwards Group. The ability to acquire this financing through D2CA’s debt fund execution has enabled the firm to build a new relationship with institutional capital, which will further enhance its development agenda.
Remarking on the significance of C-PACE financing, Mike Doty, Senior Director of Originations at Nuveen Green Capital, emphasized its role in ensuring financial feasibility and reducing the overall capital cost for the project. "The integration of C-PACE as a non-recourse capital layer significantly lowers financing expenses while delivering essential housing solutions in a burgeoning city sector."
D2 Capital Advisors thrives on facilitating complex financing solutions for significant commercial real estate projects across various asset classes. With over $1.25 billion in funded deals nationwide and a commitment to connecting clients with the right capital resources, D2CA remains a beacon of strategic financial partnership in the real estate landscape.
As this project at 2507 Almond Street progresses, it stands as a testament to D2CA's expertise in navigating the nuances of Philadelphia's real estate market and the adaptive resilience of community-focused development in the face of industry challenges.
The financing consists of two main components: a $20 million senior construction loan provided by Silver Heights Capital and an additional $17.3 million in Commercial Property Assessed Clean Energy (C-PACE) financing courtesy of Nuveen Green Capital. This strategic arrangement was facilitated by D2CA on behalf of the Riverwards Group, a real estate firm led by Mo Rushdy and Larry McKnight, both experienced principals in the industry.
Jack Cortese and David Frankel of D2CA played pivotal roles in securing both financing branches, designed to optimize the project's funding while minimizing the overall cost of capital for the developer. Cortese noted, "Despite the prevailing narrative of oversupply and slower absorption rates in Philadelphia's multifamily market, our local insights painted a different picture. Leasing activity in the Northern Liberties, Fishtown, and Olde Richmond areas has been rising, while new construction projects have plateaued. This discrepancy enabled us to present a compelling case for financing that resonated with lenders."
The location of the Almond Street project sits within a vibrant submarket that is transitioning through its absorption cycle, particularly following a surge in supply from 2023 to 2025. City-wide leasing rates have begun to outstrip new deliveries for the first time in over three years, with 2026 witnessing a significant decline in new construction starts. First quarter deliveries for that year were the lowest in recent memory, and full-year completions are projected to hover around 7,000 units—far lower than the 2024-2025 figures.
As the immediate submarket experiences a significant reduction in available units—following a peak vacancy rate during the previous supply wave—the timing of the 2507 Almond Street development is poised to enter the market favorably, avoiding competition from an influx of new properties. Scheduled for delivery in early 2028, this project is strategically positioned to address the growing demand for housing in a recovering market.
With a track record stretching back to 2009, Riverwards Group has established itself as a robust full-service developer within Philadelphia’s Riverwards neighborhoods, having successfully delivered over 1,500 housing units and multifamily developments, including notable projects like Somerset Station and Kensington Courts. The company operates on an integrated model that encompasses development, design, and construction processes, enhancing its ability to respond to market needs effectively.
"We engaged D2 Capital Advisors with a clear objective: to secure a non-recourse financing solution that expands our range of lending relationships beyond our established local banks," stated Mo Rushdy, Principal of Riverwards Group. The ability to acquire this financing through D2CA’s debt fund execution has enabled the firm to build a new relationship with institutional capital, which will further enhance its development agenda.
Remarking on the significance of C-PACE financing, Mike Doty, Senior Director of Originations at Nuveen Green Capital, emphasized its role in ensuring financial feasibility and reducing the overall capital cost for the project. "The integration of C-PACE as a non-recourse capital layer significantly lowers financing expenses while delivering essential housing solutions in a burgeoning city sector."
D2 Capital Advisors thrives on facilitating complex financing solutions for significant commercial real estate projects across various asset classes. With over $1.25 billion in funded deals nationwide and a commitment to connecting clients with the right capital resources, D2CA remains a beacon of strategic financial partnership in the real estate landscape.
As this project at 2507 Almond Street progresses, it stands as a testament to D2CA's expertise in navigating the nuances of Philadelphia's real estate market and the adaptive resilience of community-focused development in the face of industry challenges.
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