A multifamily property in Philadelphia's Old City neighborhood was refinanced and funded for some needed renovations thanks to a new platform built on Bitcoin.
Newmarket Capital's new Battery Finance strategy is an inclusive financing tool that harnesses the energy of Bitcoin and blends it with real-world assets to power financing solutions. The platform was used in the recent Bank Street Court transaction, which included the refinancing of a well-established $16.3 million mixed-use asset with a $12.6 million loan. The deal has earned a 2025 CoStar Impact Award for multifamily development of the year in Philadelphia, as judged by real estate professionals familiar with the market.
The loan refinanced the existing first lien loan of $8.9 million on the property and funded $2 million in targeted building improvements, while also allocating $1.5 million toward the purchase of Bitcoin and covering closing costs. The loan provides term financing at a market interest rate for 10 years with no prepayment penalty. The deal is the first loan, to Newmarket's knowledge, to fuse a traditional asset with Bitcoin. By reallocating a portion of the equity into Bitcoin, the borrower significantly enhances the upside potential of their asset, transforming the return profile of a 5.5% capitalization rate property into an investment with much greater return potential. Unlike traditional real estate investments, which generate steady but often modest returns tied to rental income and property appreciation, Bitcoin introduces an asymmetric return profile that can amplify overall performance.
The five-story, 59-unit property was originally built in 1854 and last renovated in 1985. Consisting of only studio and one-bedroom units, the average size of each apartment is 583 square feet and the average rent is estimated to be $1,291, according to CoStar data.
About the deal: New York Digital Investment Group served as the Bitcoin custodian, and The Bryn Mawr Trust Company as the non-bitcoin custodian. Akin Gump Strauss Hauer & Feld was the transaction's legal counsel to the partnership in connection with the offering of limited partner interests, and Faegre Drinker was the local Pennsylvania legal counsel. Ten31 is the venture capital partner.
What the judges said: Kenneth Wellar, a founding partner at GREA admired the "Old building sitting on the waterfront for many years finally coming back to life."
They made it happen: The team behind the successful refinancing includes Battery Finance Founder Andrew Hohns; Thierry Adant, chief investment officer of NewMarket Capital; Katie Langton, managing director of NewMarket Capital; Jacob Dinhofer, director of NewMarket Capital; and Jake Buck, vice president, of NewMarket Capital.