Arrow Real Estate Advisors arranges $22.4 million in financing for two downtown Kennett Square properties

Kennett Square, PA Arrow Real Estate Advisors arranged $22.425 million in total financing across two properties at 101 E. State St. and 128 E. State St. on behalf of 9SDC. The two transactions closed simultaneously on June 26, 2026.

The financing was structured as two separate bank loans tailored to each property’s business plan. 

For 101 E. State St., Arrow arranged a $7 million bridge loan with S&T Bank to support the acquisition and repositioning of the 93,468 s/f, three-story office and retail building. 

For 128 E. State St., Arrow arranged a $15.425 million construction loan with Valley Bank to finance the acquisition and adaptive reuse conversion of the six-story, 82,623 s/f property into 60 luxury market-rate apartments with ground-floor retail.

Originally developed as the corporate headquarters for Genesis Healthcare, formerly the nation’s largest owner and operator of skilled nursing facilities, both properties became available following the company’s bankruptcy filing in early 2025. 9SDC subsequently entered into an agreement to acquire the assets and made plans to execute a comprehensive repositioning strategy designed to revitalize a prominent section of Downtown Kennett Square.

At 101 E. State St., 9SDC plans to reposition the property as Kennett Square’s premier office destination through a targeted capital improvement program that includes a tenant fitness center, conference and collaboration facilities, upgraded amenity spaces, and modernized common areas designed to attract high-quality office tenants.

At 128 E. State St., the sponsor is converting the property’s upper floors into 60 luxury residential units while transforming the ground and lower levels into three retail spaces. Leasing activity has already begun, with a portion of the commercial space pre-leased ahead of construction, demonstrating early demand for the mixed-use redevelopment.

The Arrow team of managing partner Morris Betesh, Alex Bailkin, and Matt O’Hanlon arranged both financings.

“Kennett Square is one of the most supply-constrained submarkets in Pennsylvania, and these projects will help meet the market’s demand for housing and high-quality office space in a walkable downtown location,” said Betesh. “Arrow coordinated the simultaneous closing of two bank financings, allowing 9SDC to close on the combined acquisition and immediately begin executing its business plan for the two properties.”

“We are thrilled to officially close on these properties and begin the next chapter for such a prominent piece of downtown Kennett Square,” said Robert Herrera, partner at 9SDC. “From the outset, we saw a unique opportunity to invest in buildings that are deeply connected to the character and history of the community. We look forward to building on that foundation and helping bring new energy, tenants and activity to the heart of the downtown.”