Red Oak Capital Holdings, LLC, a leading provider of private capital solutions for commercial real estate, has provided a $9.225-million bridge loan for the Ridge Avenue Apartments, a newly built residential community in Philadelphia.
The loan will pay off the construction loan and fund the project’s final phase, bringing it to completion. The transaction was underwritten through Red Oak’s Opportunistic Bridge Loan Program, which is designed for properties in transition with significant value-creation potential.
The two-year, interest-only loan carries has an LTSV of 55.64%. The borrower, Echo Philly Properties, LLC, is an entity owned 60% by Vich Properties LLC, a Philadelphia-based real estate development and management firm specializing in high-end residential projects throughout the region.
Located at 1614-1620 Ridge Avenue, the five-story property consists of 32 luxury residential units, split evenly between one-bedroom and two-bedroom floor plans. The mid-rise building includes two ground-floor retail spaces totaling 8,000 square feet and 17 off-street parking spaces, a highly sought-after feature in Philadelphia. Residents will benefit from premium amenities, including a fitness center, rooftop terrace, quartz countertops, stainless steel appliances, and in-unit washer/dryers.
“Philadelphia’s urban core is experiencing a powerful wave of growth, and Ridge Avenue Apartments is well positioned to ride that momentum,” said Gary Bechtel, CEO of Red Oak Capital Holdings. “With strong sponsorship, a nearly complete high-quality product, and a market starved for new residential supply, this project has all the components of a long-term success story. Our financing gives the sponsor the flexibility to finish construction and fully capitalize on the demand for modern housing in one of the city’s fastest-transforming neighborhoods.”
The sponsor is leveraging Philadelphia’s 10-year real estate tax abatement program, which provides substantial tax relief on new residential construction and enhances the project’s long-term value. Upon stabilization, Echo Philly plans to retire the bridge loan with a permanent loan or proceeds from the sale of the property.
The neighborhood is undergoing rapid redevelopment, shifting from a mixed industrial area into a vibrant residential community. New construction activity is booming, driven by strong demand for housing near public transportation. Vacancy rates among peer properties remain below 5%, according to CoStar.
