Orens Brothers Real Estate has received a $20 million HUD 223(f) refinancing loan for Croydon Hall Apartments, a 127-unit multifamily property in Philadelphia. Greystone provided the loan, which has a 35-year term and a fixed interest rate of 2.59%, HUD’s financing database shows.

The new financing retires two previous loans from Spencer Savings Bank totaling $21.1 million, according to records filed with the county. The HUD package included mortgage insurance premium reduction of 25 basis points thanks to the property’s Energy Star certification, earned in late 2020.

Located 4 miles west of Center City at 241 S. 49th St., Croydon Hall was constructed in 1925 and completely overhauled and renovated in 2012, shortly after Orens Brothers purchased the asset for $1.8 million. The community has a range of one-, two- and three-bedroom units, with floor plans from 480 to 880 square feet. Amenities include a lounge with a pool table and arcade, a fitness center, conference rooms, and storage units.

Rocking the Suburbs

Market data shows Philadelphia has been a strong performer in recent years, posting 12 consecutive years of rent growth last year, according to a Marcus & Millichap report. While the market has seen tightening vacancies and rising rates as a whole, the metro’s suburban zones have fared particularly well. One driver of elevated demand in these suburban areas? Pandemic-inspired relocations to the market’s outer reaches.

It isn’t just the suburbs, though: Multifamily leasing activity picked up in Center City, too, with vacancies falling 50 basis points between the second and third quarters last year, the same report highlights. That said, future challenges for Philly’s urban core are clearly on the horizon, with a massive development pipeline that will likely outpace absorption — at least in the near term.