ACORE Capital Provides $81 Million Financing for Philadelphia Multifamily Portfolio in Olde Kensington
ACORE Capital has closed an $81 million financing facility for a multifamily portfolio in Philadelphia's Olde Kensington neighborhood, the firm announced Sept. 29, 2026. The transaction combines bridge financing for two existing built-to-rent townhouse communities with construction financing for a third mixed-use multifamily development — all structured under a single facility.
The financing was arranged by Jason Hull, managing director at Regions Bank.
Portfolio Overview and Loan Structure
The three-property portfolio totals approximately 234 residences across modern residential communities in Olde Kensington. Two of the assets are existing built-to-rent townhouse properties. The third is a 120-unit mixed-use multifamily building under construction, with delivery anticipated in the third quarter of 2028.
Roughly half of the $81 million in proceeds — approximately $40.5 million — will fund construction of the new development. The remaining proceeds refinance the two existing townhouse assets. The loan implies approximately $346,000 per residence across the 234-unit portfolio, a loan-to-unit metric based on the total facility size.
The portfolio's properties offer access to major employment corridors, public transportation, and a mix of retail, dining, and cultural destinations, according to ACORE Capital.
ACORE Capital on the Transaction
"Philadelphia continues to demonstrate durable demand for high-quality rental housing, and this portfolio represents an attractive opportunity to finance a trio of assets in a well-located neighborhood," said Corey Goodstein, a director within the originations team at ACORE Capital. "The transaction reflects our ability to utilize creative capital solutions to meet the needs of our borrowers, providing bridge and construction financing under one facility."
The combined facility structure allows the sponsor to address two distinct stages of the development cycle without requiring separate loan processes — refinancing existing assets while simultaneously funding a project still under construction.
Philadelphia Multifamily Market Context
The financing arrives as Philadelphia's multifamily supply cycle begins to moderate. Approximately 7,000 units are projected to be completed in the Philadelphia market in 2026, roughly in line with the market's long-term average and below elevated delivery totals recorded in 2024 and 2025. The broader construction pipeline stood at approximately 10,047 units as of mid-2026, equivalent to 2.33% of existing inventory — down from 4.56% in early 2024.
Operating fundamentals have remained comparatively stable. Philadelphia's average advertised asking rent reached $1,869 through June 2026, up 0.3% on a trailing three-month basis. Occupancy was reported at 95.4% as of May 2026, above the 94.1% national average. Average multifamily price per unit in the market was approximately $188,761, up 1.9% year over year, with an average cap rate of 6.08%. Disclosed Philadelphia multifamily transactions during the second quarter averaged cap rates in the mid-5% range.
The 120-unit project's anticipated Q3 2028 delivery date positions it beyond the immediate 2026 supply peak, when competing projects are expected to be in lease-up or stabilization. Rent growth in the market remains modest, and operators have broadly prioritized occupancy over aggressive rent increases in new leases.
About ACORE Capital
ACORE Capital is a commercial real estate investment manager with more than $17 billion of assets under management as of June 30, 2026. Headquartered in New York, with offices in Los Angeles, Miami, San Francisco, and Dallas, the firm originates, acquires, and manages first mortgages, B-notes, mezzanine debt, and preferred equity on behalf of institutional investors.