Riverwards Group Secured $35.8 Million for Philadelphia Project
Multifamily developers can leverage C-PACE financing alongside traditional debt to maximize project capital.
Updated on Oct. 5, 2026 in Corporate Finance
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Riverwards Group closed on $35.8 million in total construction financing for Somerset Phase II, a 170-unit residential development in Philadelphia. The financing package combines senior debt with C-PACE capital to support the project at 2202 East Somerset Street.
Why it matters
The capital stack was structured to maximize proceeds and lower the developer's cost of capital, reflecting a strategy to maintain project viability amid high construction costs. By tapping into $15.9 million in C-PACE financing, the developer minimized reliance on more expensive equity.
The $35.8 million financing package for the 146,158-square-foot project includes a $19.9 million senior construction loan and $15.9 million in C-PACE debt. This supports the build-out of 170 units, which qualify for a 10-year, 100 percent real estate tax abatement.
The players
Riverwards Group
A residential development firm focused on urban infill projects.
Silver Heights Capital
A specialty lender providing construction debt and real estate capital.
Nuveen Green Capital
An investment firm specializing in C-PACE financing for commercial real estate.
D2 Capital Advisors
A real estate finance firm that brokers debt and equity placements.
The details
D2 Capital Advisors arranged the financing to layer long-term C-PACE capital beneath the senior construction loan provided by Silver Heights Capital. This mechanism helps developers bridge the gap between bank lending limits and project requirements while retaining control. The site will house 76 studios, 38 one-bedroom units, and 56 two-bedroom units, with completion targeted for early 2028.
Timeline
October 5, 2026: Financing for Phase II was announced.
Early 2028: Scheduled completion of Somerset Phase II.
Market Landscape
This development follows a pattern set by Philadelphia's 10-year real estate tax abatement program to incentivize construction. The project proceeds despite 2024 data showing Philadelphia issued its lowest number of residential permits, highlighting a reliance on tax incentives.
Operators should review whether their upcoming developments meet the eligibility criteria for local tax abatements or green energy financing. Assessing the blend of C-PACE debt against senior bank loans can significantly adjust your cost of capital for future projects.
The takeaway
Optimizing a capital stack involves balancing senior debt with specialized instruments like C-PACE to preserve sponsor equity. Operators should monitor the progress of 2202 East Somerset Street as a benchmark for large-scale development feasibility in the local market.
Further reading
For more on the mechanics of capital stacks in urban construction, see Corporate Finance.
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