Closed · October 2026 · West Hamilton Street, Allentown, PA

52-Apartment Conversion on West Hamilton Street, Allentown, Financed with a $9,261,000 Construction-to-Permanent Loan

A Lehigh Valley developer is converting a three-story commercial building on West Hamilton Street in Allentown into 52 apartments over ground-floor commercial space. GSM arranged a $9,261,000 construction-to-permanent loan with a bank/credit union that funds the build and converts to permanent financing on completion.

Architect's rendering of the converted building: brick storefronts at street level with apartment floors above — Architect's rendering, used with the developer's permission.

How the financing was structured

The building is a three-story commercial property on West Hamilton Street in downtown Allentown. The developer's plan converts it to 52 apartments, with commercial space kept on the ground floor.

GSM Commercial Capital arranged a $9,261,000 construction-to-permanent loan with a bank/credit union. The one loan covers the hard costs, the soft costs and an interest reserve while the building is under construction, then converts to permanent financing when the building is complete.

Downtown conversions need a lender comfortable with both the construction and the finished rental building. GSM brings projects like this to the bank and credit union lenders that do both, with the file underwritten and structured the way their credit committees want to see it. The loan closed in October 2026.

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