Second phase of Piazza Alta development to add 431 apartments in Northern Liberties

Real estate developer Post Brothers has secured a $170 million loan to start construction on the second phase of its Piazza Alta project in Northern Liberties, where two new buildings will add another 431 apartments to the first phase of the complex completed two years ago.

Financing for the next phase of the development will come from San Antonio-based Affinius Capital, the Commercial Observer reported Monday.

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Post Brothers, run by brothers Matthew and Michael Pestronk, has led a transformation of the former Piazza at Schmidt's and its surrounding parcels over the last several years. In 2018, they had purchased the original Piazza apartments and retail complex, built by developer Bart Blatstein in the 2000s and then acquired a controlling stake in plans to expand at the corner of Second Street and Germantown Avenue in 2019

The first phase of Piazza Alta included five-story, 12-story and 16-story buildings with a combined 695 units. The second phase of the market-rate development will add an eight-story building and a 16-story building atop a pair of podiums that were constructed with ground floor retail during the first phase.

The two new buildings will have a mix of studios and one- to three-bedroom apartments along with a rooftop pool, fitness center and co-working space. Post Brothers aims to complete the expansion by the end of 2027, bringing the development to a total of 1,126 apartments.

The Pestronk brothers told the Philadelphia Business Journal that Piazza Alta's first phase is now 97% leased.

Northern Liberties saw a construction boom in the years before and during the COVID-19 pandemic, including several other projects nearby the Piazza. Southwood Properties opened up its 55-unit Eight Two Eight building at Second and Poplar streets last year and Stamm Development Group opened the 50-unit Beverly building along Germantown Avenue. Among other multifamily projects in the neighborhood, Jefferson Apartment Group and Haverford Properties also debuted their 470-unit Rivermark development at Spring Garden Street and Christopher Columbus Boulevard last year.

Affinius Capital's loan for the second phase of Piazza Alta comes amid a cooling off in new construction in Philadelphia, part of a national trend triggered by high interest rates and increased building costs. In 2024, the number of permits issued for new residential construction in Philadelphia fell to the lowest level since 2013, according to a report from the Pew Charitable Trusts.

"This project aligns with our strategy of financing exceptional multifamily assets with top-tier sponsorship," Affinius Capital senior vice president Perry Katz told the Commercial Observer.