We provide $50K–$500K in flexible gap equity to small-scale developers building 2–10 unit residential projects on Philadelphia's vacant lots. Fast capital. Fair terms. Neighborhood impact.
Philadelphia's 2022 tax abatement changes and rising construction costs have made townhome development harder than ever — especially for the small, local builders who do it best.
Construction lenders require 25–35% equity. For a $2M townhome project, that's $400K+ in cash that most small developers simply don't have — even when the deal is strong.
The 2022 tax abatement change added ~$118K in costs to a typical 4-unit project. Townhome permitting collapsed. Big apartment developers kept building. Small builders stopped.
CDFIs provide debt, not equity. City programs are slow and require affordability restrictions. Banks need proven track records. The 2–10 unit builder falls through every crack.
We move at the speed small developers need. No bureaucratic delays. No affordability compliance hoops. Just smart, aligned capital.
Send us your project: site, pro forma, construction budget, and your experience. We review within 5 business days.
We evaluate the site, zoning, comps, your track record, and the capital stack. We'll work with your construction lender directly.
Standardized terms. Gap equity structured as subordinated capital your lender will accept. We close in 2–4 weeks.
You build. We're repaid at sale from project proceeds, with a share of upside that keeps incentives aligned.
We're not a bank and we're not a grant program. We're an equity partner built for Philadelphia's missing-middle housing market.
We work with developers at every stage — from first-time builders to experienced operators scaling up.
Graduates of Jumpstart, Philly Rise, PHDC Minority Developer Program, or BIA/UDA mentorship ready to take on their first multi-unit project.
Developers with 3–10 completed projects who need equity to scale from single-family rehab to new construction townhomes.
Neighborhood-rooted builders investing in their own communities. We prioritize developers who live where they build.
We co-invest alongside Reinvestment Fund, PIDC, the Accelerator Fund, and local banks. Our equity makes your debt work.
From 2000 to 2023, Philadelphia added over 60,000 housing units — most of them townhomes on vacant lots, built by small, local developers using the 10-year tax abatement. It was one of America's great urban comebacks.
The 2022 abatement changes broke that engine. Townhome permitting collapsed. But the vacant lots remain, the housing shortage deepened, and a growing pipeline of trained developers are ready to build — if they can access equity.
Mayor Parker's $2 billion H.O.M.E. initiative signals renewed public commitment. Targeted abatement restoration is being explored. The Land Bank just regained its ability to acquire properties. The table is being set — we're here to make sure small developers have a seat.
Whether you have a shovel-ready project or an early-stage deal, we want to hear from you.
hello@keystonegapcapital.com →