Walker & Dunlop, Inc. announced today that it structured a joint venture for the acquisition and development of 5000 Richmond Street, a 69-acre land parcel located just six miles from Center City, in Philadelphia, Pennsylvania. The transaction represents the emerging trend of industrial parks being developed within high-barrier-to-entry urban infill locations. The need for such localized distribution facilities to serve as last-mile distribution centers has increased significantly, thanks to increased demand for e-commerce and shortened delivery windows.
Walker & Dunlop’s New York City Capital Markets team, led by Mo Beler, Aaron Appel, Jonathan Schwartz, Adam Schwartz, Keith Kurland, and Michael Diaz, advised its client, DH Property Holdings, in obtaining a limited equity partner to fully capitalize the development. The property will be developed into a state-of-the-art, Class A industrial campus comprising approximately 733,800 rentable square feet, with a total capitalization in excess of $115,000,000.
“Walker & Dunlop’s team brought skill and acuity to this equity transaction, ultimately meeting the requirements of this complex acquisition and development,” commented Dov Hertz, Founder and Principal of DH Property Holdings. “Their advisory work and local market knowledge were critical in helping us find the ideal partner for our needs, in a short timeframe.”
Said Mr. Beler, “Philadelphia-area industrial properties are seeing the highest occupancy levels ever, and rents are continuing to surge, making this project a rare opportunity to capitalize on a new last-mile industrial development opportunity.” He continued, “Economic conditions and rapidly-changing supply chain logistics are helping to drive positive sentiment around industrial real estate, and the investor community reacted favorably to this deal.”
Positioned directly off Interstate 95 and minutes away from the main terminals of PhilaPort’s Tioga Marine Terminal, 5000 Richmond boasts proximity to Philadelphia, New Jersey, and New York, in addition to coveted local neighborhoods, Fishtown, Old City, and Pennsport. The highly sought-after land parcel provides ease of access to potential industrial tenants as well as national retailers. Outfitted with cutting-edge facilities, including a 351,800 square-foot single-side load facility, a 382,000 square-foot cross-dock facility, 129 dock-high doors, six grade-level doors, and 278 trailer parking stalls, the distribution center will provide the most comprehensive and compelling logistics features in the surrounding area.
Walker & Dunlop has one of the strongest industrial finance networks in the industry. Over the past three years, the New York City team has completed over $3 billion in industrial debt and equity placements across the country.
For more insights on the industrial market, including trends driving new warehouse construction, the need for urban infill industrial properties, and case studies on recently closed transactions, please see our Industrial Market Report.
About Walker & Dunlop
Walker & Dunlop (NYSE: WD), headquartered in Bethesda, Maryland, is one of the largest commercial real estate finance companies in the United States. The company provides a comprehensive range of capital solutions for all commercial real estate asset classes, as well as investment sales brokerage services to owners of multifamily properties. Walker & Dunlop is included on the S&P SmallCap 600 Index and was ranked as one of FORTUNE Magazine’s Fastest Growing Companies in 2014, 2017, and 2018. Walker & Dunlop’s 950+ professionals in 41 offices across the nation have an unyielding commitment to client satisfaction.