Barings and Counterpointe Sustainable Real Estate have finalized a combined $173 million construction financing package to support the development of Harper Square, a luxury high-rise apartment tower planned for Philadelphia’s Rittenhouse Square neighborhood. The package includes a $113 million construction loan from Barings and $60 million in Commercial Property Assessed Clean Energy financing from Counterpointe Sustainable Real Estate.
The financing will enable Pearl Properties to advance the construction of Harper Square, which is set to become the tallest apartment rental building ever constructed in Philadelphia. The 500-foot tower will feature 267 luxury units, with a remarkable 75% of them offering private balconies. The residences will offer expansive views of Rittenhouse Square and Center City while continuing Pearl Properties’ pattern of designing high-end residential projects in some of the city’s most desirable areas.
The project builds upon the strong performance of Pearl Properties’ prior developments and aligns with the robust fundamentals in Center City’s multifamily sector. Located directly across the street from Pearl’s successful project, The Harper, Harper Square is positioned to meet rising demand for upscale urban living. The tower is expected to reach completion in the spring of 2028, during a period of heightened national and international attention on Philadelphia as it prepares for the country’s 250th anniversary celebrations.
The $60 million in C-PACE financing marks the most significant such financing ever completed in Pennsylvania, further elevating the project’s profile. Counterpointe Sustainable Real Estate noted that the structure of the funding provides long-term efficiency benefits for an asset of this scale. The collaboration between Barings, Counterpointe Sustainable Real Estate, and Pearl Properties highlights growing activity in sustainable real estate financing as lenders and developers continue to integrate clean-energy-aligned capital into major commercial projects.
For Barings, the transaction expands its more than $25.6 billion real estate debt platform, which spans North America and Europe, focusing on loans backed by institutional-quality commercial properties. Barings and its partners emphasized the strategic importance of the Harper Square development and its potential contribution to Philadelphia’s evolving skyline and residential offerings.
KEY QUOTES:
“Philadelphia and Center City’s submarket fundamentals are strong, exemplified by Pearl’s highly successful development, The Harper, directly across the street. Harper Square stands well-positioned to benefit from the positive trends taking place in the city, and Barings is proud to be a partner in this development.”
Ryan Naumes, Managing Director, Barings
“Pearl Properties has been proud to shape the fabric of Center City through luxury developments that stand the test of time.”
Jim Pearlstein, Pearl Properties
“This project is not only a milestone for our company but a landmark for the city—a new icon that reflects the strength and vitality of Philadelphia’s Rittenhouse Square community.”
Reed Slogoff, Pearl Properties
“This transaction is the direct result of close collaboration between CounterpointeSRE, Barings and Pearl Properties. Harper Square represents the largest C-PACE financing to date in Pennsylvania and stands among the premier real estate assets benefitting from its highly efficient and accretive long-term capital structure.”
Eric Alini, CEO, Counterpointe Sustainable Real Estate
