Citizens Bank Financial Group is funding the construction of two apartment buildings in neighborhoods northwest of Center City with a total of $27.5 million in loans, allowing the projects to move forward despite economic headwinds from the coronavirus pandemic.
The loans comprise $19 million in financing for a 108-unit apartment building with 11,000 square feet of commercial space at 2601 Poplar St. in the city's Fairmount section and $8.5 million for a 49-unit project with 1,488 square feet of commercial space at 3029-31 W. Glenwood Ave. in Brewerytown, the bank said Wednesday in a release.
Bank officials declined to comment on the deal in the context of the current economic recession and associated job losses, which have made some investors skittish about projects that rely on rental income.
"These housing projects will meet a crucial need in our community and these loans demonstrate Citizens' strong commitment to support more housing options for Philadelphia residents," Daniel K. Fitzpatrick, Citizens' president for the mid-Atlantic region, said in a release.
Although both properties are located in federal Qualified Opportunity Zones under the 2017 tax law, which means investors in the projects can claim big potential savings on taxes, bank officials said that did not drive their assessments of the projects.
