CBRE Arranges $63 Million Construction Loan for Allentown, PA Conversion
Former Brewery to be Transformed Into 283-Unit Class A Multifamily Project
January 5, 2024
CBRE’s Multifamily Debt & Structured Finance team has arranged $63 million in construction financing for the transformation of a former brewery into a 283-unit Class A multifamily development in Allentown, PA. The CBRE team of Matthew Klauer, Cassandra Russell and Josh Keitelman arranged the financing on behalf of the sponsor, Urban Residential Properties, in partnership with The Manhattan Building Company.
The three-year construction loan, provided by White Oak Real Estate Capital LLC, will fund the development of Neuweiler Lofts, a 283-unit multifamily development with approximately 40,000 square feet of retail space located at 401 North Front Street in Allentown, PA. Neuweiler Lofts is a transformation of the old Neuweiler Brewery, an Allentown landmark, which was once the city’s largest employer. The Brewery building has since fallen into disrepair and has been vacant for more than 50 years since closing in 1968. The project is located in Allentown’s Neighborhood Improvement Zone (“NIZ”), a 128-acre special taxing district that has brought large-scale redevelopment to downtown Allentown and the Riverfront District.
“Closing this construction loan in the current environment was all about persistence, so I’m extremely proud of the collaboration with White Oak and my client to get this over the finish line,” said Mr. Klauer of CBRE.
Urban Residential Properties partner John Palumbo has been the driving force behind his company’s push into Allentown. “Allentown is in a period of massive transformation and has all of the bones of a great mid-sized city. I believe Allentown will soon be widely known as one of the best mid-sized cities in the country. We are proud to be an integral part of its growth. I thank CBRE and White Oak for their commitment to us and their resolve to see this challenging financing to its closing,” said Mr. Palumbo.
Urban Residential Properties is a vertically integrated real estate development firm based in Allentown, Pennsylvania’s third largest city. URP has a decade of experience in Allentown and is spearheading a 25+ acre masterplanned redevelopment of Allentown’s Riverfront. URP has $100M+ of real estate development projects completed or under construction, with another $1B+ in various stages of planning and predevelopment.
URP partnered with Manhattan Building Company founder Sanford Weiss on the project. MBC is a Jersey City-based real estate development firm which has developed over $2B+ of real estate in Hoboken and Jersey City. “Sandy is an incredible friend, mentor and partner. He’s always believed in our vision for Allentown’s riverfront. While most people thought we were crazy, Sandy thought it was the best redevelopment opportunity he’s seen since Hoboken and Jersey City in the 1980s. We share the same passion for real estate and recognize the parallels between Allentown’s potential and Jersey City’s successes that were realized years ago. We are looking forward to a successful execution of this transformative project, which will create hundreds of jobs for area residents and continue the revitalization of Allentown’s riverfront,” Mr. Palumbo said.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2023 revenue). The company has more than 130,000 employees (including Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.