Cronheim Mortgage secured $117.5MM in permanent and construction financing for Madison Farms, a multifaceted mixed-use development featuring 152,000 square feet of retail space and 570 luxury mid-rise apartments in Bethlehem, Northampton County, PA. The loans were placed with American General Life Insurance Company, whom Cronheim represents as correspondent and servicer.
Madison Farms Retail encompasses 152,000 square feet, anchored by a 67,400 square ShopRite. The Subject’s nine buildings are leased to an impressive roster of national, regional, and local tenants, including Starbucks, Chipotle, Provident Bank, Pure Barre, Pet Valu, and Supercuts, among many others. The property also features a two-story, Class A medical office building for the Lehigh Valley Health Network.
Madison Farms Residential comprises of 570 luxury one- and two-bedroom apartments across fifteen three- and four-story elevator-serviced buildings. Each apartment features hardwood and ceramic tile flooring, carpeted bedrooms, energy efficient stainless steel kitchen appliances, solid surface countertops, and washer and dryer units. A 6,500-square-foot clubhouse includes a billiards room, multi-media center, fitness center, golf simulator, business center, and an expansive outdoor pool and deck, complete with barbeques and fire pits.
Bethlehem was named one of the “100 Best Places to Live and Launch” by CNN Money, due to its business- and entrepreneur-friendly, university-town environment. The strong retail and multifamily tenant base and traffic at Madison Farms are also driven in part by its close proximity to the brand new St. Luke’s Hospital-Anderson Campus, located directly across Freemansburg Avenue. In addition, Pennsylvania’s lower taxes, strong school system, and lower cost of living make Madison Farms an excellent choice for commuters to western New Jersey’s suburban markets.
For Madison Farms Retail, Cronheim arranged $32 million in permanent financing on a 20/30 basis. For Madison Farms Residential, Cronheim arranged an $85.5 million facility on a 20/30 basis with 2 years of interest only, which provided permanent financing on the 294 unit first phase and construction/permanent financing on the 276 unit second phase which will be fully completed and occupied by early 2018.