Gamma Real Estate has closed on a $5.575-million loan that enabled a local developer to acquire a parcel of land in the historic Spruce Hill section of Philadelphia’s University City District, near University of Pennsylvania’s campus.
The developer, Christopher Rahn, plans to redevelop the property with a 125-unit student housing development. The site, at 4125 Chestnut Street, currently is occupied by a car wash and oil change facility.
Mr. Rahn, a former construction company executive, has developed numerous properties, mostly residential, in the vicinity of Temple University. The loan from Gamma is collateralized by 4125 Chestnut Street and by a 33,000-square-foot building on Tulip Street, which had been occupied by Temple University’s School of Nursing.
Jonathan Kalikow, president of Gamma Real Estate, notes that demand for new student housing is rising both in Philadelphia and nationwide. “This has become a high-energy segment of residential development, and 4125 Chestnut Street is ideally situated to serve Philadelphia’s enormous student population,” he says.
University City is a vibrant 2.4-square-mile district across the Schuylkill River, west of center city Philadelphia. In addition to the Penn and Drexel University campuses, the district is home to the University of the Sciences, known for its degrees in pharmacy and other health disciplines, and a host of medical research institutions.
The Spruce Hill section, one of Philadelphia’s historic “streetcar suburbs,” is famous for its well-preserved residential architecture, dating back to the mid- and late-19th century and very early 20th century.
Gamma Real Estate is a boutique commercial real estate firm based in New York City. Owned and operated by the Kalikow family, the firm boasts a 45-year history of success as both lenders and owners of commercial real estate. For more information, please visit www.gammarealestate.com.