D2 Capital Advisors Arranges $35,830,000 in Construction Financing for Somerset Phase II in Philadelphia's Port Richmond Neighborhood

EmitenTrust.com PHILADELPHIA, Oct. 13, 2026 /PRNewswire/ -- D2 Capital Advisors (D2CA) today announced that it has arranged and closed a $35,830,000 construction financing package for Somerset Phase II, a 170-unit multifamily development at 2202 E. Somerset Street in the Port Richmond neighborhood of Philadelphia and the next phase of Riverwards Group's Somerset Station master plan. The capital stack comprises a $19,870,000 senior construction loan and $15,960,000 in Commercial Property Assessed Clean Energy (C-PACE) financing. D2CA arranged both tranches on behalf of Riverwards Group, led by principals Mo Rushdy and Larry McKnight, P.E., LEED-GA.

The senior construction loan was provided by Silver Heights Capital and the C-PACE financing came from Nuveen Green Capital, a leading provider of C-PACE financing. Together, the two tranches fund construction of the 146,158-square-foot project, which will deliver a unit mix of 76 studios, 38 one-bedrooms, and 56 two-bedrooms, along with on-site garage parking. The project benefits from a grandfathered 10-year, 100 percent real estate tax abatement and is being built by Urban Renewal Builders, Riverwards Group's affiliate general contractor. Both the senior loan and the C-PACE financing were structured on a non-recourse basis. Combined with more than $10 million in sponsor equity, the financing supports a total project cost of approximately $46 million.

The transaction was led by Jack Cortese and David Frankel of D2 Capital Advisors, who structured and arranged the layered senior debt and C-PACE financing to maximize proceeds and minimize the sponsor's overall cost of capital.

"Somerset Phase II shows what a proven sponsor and a proven site can do for a financing," said Cortese. "Riverwards built Phase I on this same site, delivered it, and sold it to the Philadelphia Housing Authority, so Silver Heights and Nuveen were underwriting a team and a product that had already delivered here. Layer in a thinning supply pipeline ahead of an early 2028 delivery, and we were able to put together a $35.8 million capital stack that fits the business plan and sets Riverwards up well for what comes next at Somerset Station."

Somerset Phase II sits in the Port Richmond neighborhood of Philadelphia, immediately adjacent to Phase I of Somerset Station, the 220-unit first phase of Riverwards Group's master plan. Phase I is complete, fully occupied, and was sold to the Philadelphia Housing Authority in May 2025 for $58.1 million. The closing of Phase II builds directly on that momentum, fully financing 170 additional units for delivery in early 2028 and positioning the master plan for a future third phase. The timing is favorable, as Philadelphia issued fewer residential building permits in 2024 than in any year since 2013, leaving a thinner pipeline of new competitive supply behind the current wave of deliveries.

Riverwards Group has served as a full-service developer across Philadelphia's Riverwards neighborhoods since 2009, with a track record of more than 1,500 homes and multifamily units delivered, including Somerset Station, Kensington Courts, Avenue V, N5 Square, The Lenora, and numerous other developments. The firm maintains a vertically integrated platform spanning development, design, and construction. 

"We completed significant site work at the property during Phase I, so Phase II was positioned for vertical construction to begin quickly," said Mo Rushdy, Principal of Riverwards Group. "It was critical for us to get credit for the value we created through that site work and the Phase II entitlements. Jack and the D2CA team made sure we captured that value and delivered proceeds that align with our business plan. Our Riverwards projects have been a reliable source of naturally occurring affordable housing in Philadelphia's neighborhoods, and Phase II will continue that."

"This financing demonstrates the benefits of combining senior debt with C-PACE financing," said Seth Greenwald, Managing Partner of Silver Heights Capital. "Our longstanding relationship with Nuveen Green Capital and experience executing multiple transactions together helped deliver a streamlined capital stack, lower overall cost of capital, and greater certainty of execution for the Sponsor. We are pleased to partner with Nuveen, D2 Capital Advisors, and Riverwards Group on this transaction."

"We were proud to partner with D2 Capital Advisors to provide C-PACE financing, administered through the Philadelphia Energy Authority, for this exciting new multifamily property in Philadelphia," said Mike Doty, Senior Director of Originations, Nuveen Green Capital. "Through C-PACE, Riverwards Group was able to access a significant non-recourse capital layer at a competitive fixed rate, reducing its overall cost of capital and helping make the project financially viable while delivering much-needed housing to this growing area of the city. This transaction underscores how C-PACE, as a flexible and cost-effective financing platform, can be a crucial part of a capital stack and can positively impact construction financing by bridging the gap between senior debt and equity."

About D2 Capital Advisors

D2 Capital Advisors is a commercial real estate capital advisory firm that arranges debt and equity financing across every major asset class. D2CA has closed more than $1.25 billion in financings nationwide by pairing strong capital relationships with relentless, deal-by-deal execution to deliver the structures, proceeds, and certainty that move transactions across the finish line. For more information, visit www.d2organization.com.

About Riverwards Group

Riverwards Group is a Philadelphia-based, vertically integrated real estate development platform focused on ground-up and value-add multifamily and mixed-use projects across the city's Riverwards neighborhoods. Founded in 2009 by principals Mo Rushdy and Larry McKnight, P.E., LEED-GA, the firm has developed more than 500 homes and 1,000 multifamily units, pairing in-house development, design, and construction capabilities with deep municipal and community relationships. For more information, visit www.riverwardsgroup.com.

About Nuveen Green Capital

With over $7 billion originated, Nuveen Green Capital is a national leader in sustainable commercial real estate financing solutions and an affiliate of Nuveen, the $2 trillion+¹ asset manager and wholly owned subsidiary of TIAA. The company, which was founded by C-PACE industry pioneers who helped design the nation's first successful statewide C-PACE program², has grown to offer a market-leading suite of accretive CRE financing products and a full-service lending platform with all underwriting, legal, and asset management functions executed in-house. To learn more, visit: Nuveen.com/greencapital

About Silver Heights Capital

Silver Heights Capital ("SHC") is a nationwide commercial real estate bridge lender that originates and holds loans for its own account. SHC operates a vertically integrated platform spanning underwriting, closing, and servicing. The firm provides customized debt solutions to builders and developers, with an emphasis on speed, flexibility, and certainty of execution throughout the loan lifecycle. Since inception, SHC has originated more than $1 billion in loans.

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SOURCE D2 Capital Advisors