Suburban Philadelphia portfolio acquisition financed with $8.75M loan
JLL Capital Markets arranged the loan for Wharton Industrial’s’ purchase of a three-property light industrial portfolio
MORRISTOWN, N.J., Nov. 1, 2021 – JLL Capital Markets announced today that it has arranged $8.75 million in acquisition financing for a three-property portfolio comprising 128,561 square feet of light industrial space in the suburban Philadelphia communities of Maple Shade and Cherry Hill, New Jersey.
JLL worked on behalf of the borrower, Wharton Industrial, a platform of Wharton Equity Partners, to place the five-year acquisition loan with Metropolitan Commercial Bank.
The 96-percent-leased portfolio comprises the industrial warehouse facilities at 65-67 Old Kings Hwy. and 77 Old Kings Hwy. in Maple Shade, New Jersey, and an industrial flex building at 2091 Springdale Rd. in Cherry Hill, New Jersey. 2091 Springdale is 93 percent leased to a mix of tenants including Fiserve (S&P A-2). The Maple Shade properties, which are adjacent to each other, are fully leased to Habitat for Humanity and a diversified group of tenants. Originally constructed in 1975 and 1980 and upgraded throughout the years, the portfolio buildings feature clear heights ranging from 18 to 22 feet, 26 loading docks, two drive-in doors and ample parking.
Just off Interstate 295 and the New Jersey Turnpike (Interstate 95), the portfolio has easy access to the entire Philadelphia metro area along with the residents in New Jersey, Maryland and New York. The properties are located within the Camden and Burlington County Industrial submarkets, two of the best-performing industrial markets in Southern New Jersey due to their extensive highway network and access to over 20 million people within a two-hour drive. JLL Research shows vacancy rates for the Camden and Burlington County Industrial submarkets at 1.2 and 0.4 percent, respectively, which is lower than the New Jersey Industrial market average of 1.7 percent.
“Our previous experience investing in assets across Southern New Jersey and outside of Philadelphia has afforded us many opportunities to capitalize on the large metropolitan populations close to this area, and has also generated considerable returns for our investors,” said Peter Lewis, Founder and Chairman of Wharton Industrial. “This region is still a burgeoning hub of last-mile and next-day delivery fulfillment activity, and we look forward to continuing our strategy of acquiring and redeveloping prime industrial developments to attract both e-commerce users and potential buyers.”
The JLL Capital Markets Debt Placement team representing the borrower was led by Senior Managing Directors Michael Klein, Steven Klein, Director Michael Pagniucci and Associate Ryan Carroll.
“JLL is pleased to have secured acquisition financing for these value-add properties as Wharton aggressively builds on its strategy to assemble a portfolio of warehouse/distribution and industrial flex buildings in core locations throughout New Jersey, Pennsylvania and New York,” Michael Klein said.
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.
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About JLL
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.6 billion in 2020, operations in over 80 countries and a global workforce of more than 92,000 as of June 30, 2021. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
About Wharton Industrial
Wharton Industrial is a leading investor and developer of industrial real estate, with a robust pipeline of properties across the Eastern Seaboard, Florida and the southeast. Steered by the company’s forward-thinking leadership team, Wharton has been extremely active in the industrial sector since 2017, developing last-mile distribution facilities in proximity to major urban markets as well as big box spec development projects in the southeast. Wharton Industrial is a platform company of Wharton Equity Partners, an innovative real estate investment firm with extensive experience acquiring, developing and operating a wide range of real estate asset classes since its inception in 1987. Before shifting to building out its industrial platform, Wharton Equity Partners was an early mover in secondary-market multifamily investment, where it amassed a $500 million portfolio of value-add apartment properties across the South and Midwest, which it ultimately sold for a weighted average IRR well in excess of 20%.