Alterra Property Group is quietly hunting for roughly $140 million in floating-rate financing to steady LVL North, the modular apartment-and-retail complex anchoring the corner of Broad and Spring Garden. The seven-story project, which opened in mid-2022 a short walk north of Center City, is being teed up for a refinancing that management says would rebalance the capital stack and preserve tax perks tied to its Opportunity Zone status.
What Alterra Is Seeking
Alterra is pursuing a $140 million floating-rate loan from Rialto Capital Management to backstop LVL North, according to Bisnow. The property at 510 N. Broad St. is reported to be about 97% leased and roughly 95% occupied after Alterra converted some office space into additional apartments.
Bisnow also cites an FS Investments report filed with the SEC that details a $117.2 million senior loan tied to LVL North. FS declined to comment, and Rialto did not respond to inquiries, according to the outlet.
The Building And Its Finances
Alterra’s own materials describe LVL North as a seven-story, roughly 410-unit mixed-use project completed in mid-2022, with two levels of underground parking and a sizable retail podium, per Alterra Property Group. That podium spreads to about 108,000 square feet and houses a Giant supermarket and a Planet Fitness, with the apartments stacked above the concrete-and-steel base.
According to Alterra Property Group, modular construction helped tighten the construction schedule and limit disruption at the tight urban site. The strategy also helped bring the retail and residential components online in quick succession.
On the financing side, Alterra initially built LVL North with a construction loan from Bank OZK, then refinanced in September 2022 with a roughly $150 million floating-rate facility arranged by Natixis, according to industry deal coverage. With that loan in place, the company is now looking to swap or layer in new debt from a different lender instead of testing the sales market in a choppy environment.
Market Context
LVL North is competing in a Philadelphia multifamily market that has been swollen by a wave of new deliveries. Recent Greater Philadelphia data shows record apartment completions in 2023-24 and widespread concessions at many city properties in 2024, according to GREA.
A rush of developers raced to secure full 10-year tax abatements before the city’s incentive was scaled back, pushing a late-2021 surge of permits that is now translating into a flood of new units near downtown. That wave has intensified competition for renters just beyond Center City’s core, according to reporting by The Philadelphia Inquirer.
Why Alterra Is Moving Now
“Our original rent projections, original occupancy projections, we’ve fallen short of those,” Alterra Managing Partner Leo Addimando told Bisnow, explaining the decision to revisit the capital structure.
He told Bisnow that extending financing would allow Alterra to fully take advantage of the property’s Opportunity Zone compliance window, which runs through April 27, 2029, and that timeline is central to the refinancing plan. Alterra is framing the move as an attempt to rebalance the capital stack rather than accept a discounted sale in a softening leasing market.
Rialto’s role is not appearing in a vacuum. An SEC filing from an FS-affiliated vehicle spells out Rialto’s responsibilities in selecting investments and handling day-to-day management, underscoring an existing relationship that helps explain how LVL North-related debt surfaces in institutional reports. The filing outlines Rialto’s origination platform and anticipated work across both equity and debt strategies.
How LVL North Was Built
The project team leaned heavily on prefabricated modular units for the residential floors, manufacturing modules offsite and then stacking them atop the concrete podium. Alterra’s materials and contractor writeups describe a roughly two-year timeline from demolition to opening, a schedule they attribute in part to the modular approach, per Alterra Property Group and contractor accounts.
The strategy allowed the partners to roll out the retail, parking and modern amenities while cutting down on onsite construction time, an attractive perk on a busy North Broad intersection.
What’s Next
Alterra’s bid to secure a $140 million floating-rate facility from Rialto will serve as a real-time test of investor appetite for leverage on properties that opened during Philadelphia’s recent construction surge. Public filings and market coverage will ultimately show whether the new financing closes and how it reshapes LVL North’s capital stack.
For now, the refinancing push is another data point in how owners are stretching timelines, reworking debt and holding through a post-abatement development wave that left the city awash in new apartments.
