Off Road partnered with a leading local real estate developer to redevelop a historic brewery into a multi-family development project in Brewerytown, Philadelphia. Poth Brewery was structured as an OZ transaction. Brewerytown is a fast-growing neighborhood gaining popularity with millennials. Brewerytown is located near University City which is home to a stable and growing base of jobs in medicine, education, technology, professional services, etc. The project will redevelop the historic brewery into attractive and unique multi-family rental units (80% of the square footage) and a retail component (20% of the square footage). The project is partially financed with historical tax credits.
Off Road Fit
The project is being developed at an attractive stabilized cap rate. Off Road believes Brewerytown is in the middle of a neighborhood revitalization which is expected to run for another 5-10 years and result in significant development and an influx of college educated individuals and good paying jobs for existing and incoming residents. The OZ benefits transform a good deal into an uncommon after-tax opportunity. More than half the projected after-tax net return is guaranteed by the OZ benefits.