Riverwards Group Secured Financing for Philadelphia Project

The developer obtained $35.8 million to construct 170 new residential units in the Port Richmond neighborhood.

Updated on Oct. 5, 2026 in Corporate Finance

Isometric editorial illustration of a steel building frame and construction crane, representing urban housing development. — Riverwards Group has secured $35.8 million in construction financing for the Somerset Phase II project, which will add 170 residential units to Philadelphia’s Port Richmond neighborhood. AI Illustration. Upload story photo >

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Riverwards Group has successfully secured $35.8 million in construction financing for the Somerset Phase II development in Philadelphia. The project will bring 170 new residential units to 2202 East Somerset Street.

Why it matters

The financing structure was designed to maximize loan proceeds while lowering the developer's overall cost of capital. This development adds significant housing capacity to the Port Richmond neighborhood.

The $35.8 million funding package includes a $19.9 million senior construction loan and $15.9 million in C-PACE debt. The 146,158-square-foot development will feature 76 studios, 38 one-bedroom units, and 56 two-bedroom apartments.

The players

Riverwards Group

This real estate development firm is responsible for the Somerset Phase II construction project.

Silver Heights Capital

This financial institution provided the $19.9 million senior construction loan for the development.

Nuveen Green Capital

This firm supplied the $15.9 million in C-PACE debt for the project financing.

D2 Capital Advisors

This firm acted as the arranger for the financing transaction.

The details

The project is located at 2202 East Somerset Street and qualifies for a 10-year, 100 percent real estate tax abatement. The deal was arranged by D2 Capital Advisors to support the build-out of the site.

October 5, 2026: Financing for Phase II was announced.
May 2025: Phase I of the community was sold.
2024: Philadelphia issued its lowest number of residential permits.
Early 2028: Scheduled completion of Somerset Phase II.

Market Landscape

This project represents a significant move in the local market following the record-low residential permit issuance recorded in 2024. It demonstrates continued developer activity despite broader headwinds in the regional housing sector.

The addition of 170 residential units may help increase housing supply in the Port Richmond neighborhood. Residents can expect the construction phase to progress on-site through the projected 2028 completion date.

The takeaway

The use of C-PACE financing alongside traditional debt highlights an evolving strategy for developers to fund large-scale projects in high-interest environments. This approach allows firms to secure necessary capital while potentially minimizing the initial equity burden on the project.