Wharton Equity Purchases Land for 600,000 SF Spec Warehouses, Greenville, SC
Continues the Firm’s Focus on Developing Large-Scale Industrial Properties
NEW YORK/PRNewswire/ — Wharton Industrial, an affiliate of New York City-based Wharton Equity Partners, announced today the acquisition of an approximately 47-acre parcel of land in Greenville, SC to develop 2 state-of-the-art warehouse / distribution facilities totaling 600,000 SF. The transaction represents the first phase of a potential 5 million SF industrial project and is being developed in a partnership consisting of Wharton Industrial, Red Rock Developments of Columbia, SC, the family which has owned the land and an $8 billion real estate private equity fund.
Wharton Industrial and its partners were drawn to Greenville as the area continues to reap the benefits of the expansion of BMW’s 6 million SF manufacturing plant, its central location between Atlanta and Charlotte and its proximity to Inland Port Greer, which provides direct access to the Port of Charleston. The site is situated on State Route 101 and 296 (less than 3 miles to I-85), 4 miles from BMW and 9 miles from Inland Port Green. Other neighbors include Michelin, Valeant Pharmaceuticals and Amazon. Wharton Industrial is partnering with Red Rock Developments of Columbia, SC, a local family that has been the long-term owner of the land, and an $8 billion real estate private equity firm on the project.
Besides Greenville, Wharton Industrial has over 3 million SF in either planning or under construction, including a 1 million SF warehouse / distribution facility being built in Atlanta, GA. The Atlanta transaction is part of a potential development of over 10 million SF.
“The Greenville transaction is representative of the types of projects Wharton Industrial is focusing on as it expands its footprint in the development of large industrial properties,” notes Peter C. Lewis, founder and President of Wharton Equity. “We are completely convinced that the rapid changes taking place in logistics and warehousing today are only the start of a secular shift that will provide unique opportunities over the next decade,” he adds.
Wharton Industrial is targeting the primary and secondary markets in the US where it can develop buildings generally greater than 500,000 square feet, and which will appeal to users seeking Class A space. For its value-add properties, Wharton Industrial will be targeting the top 25 MSA’s where the demand for real-time delivery is becoming a top priority of retailers.
Wharton Equity’s move into e-commerce warehouses is consistent with the firm’s history of identifying secular changes and moving quickly to develop significant businesses around these nascent trends. For instance, in 2012, sensing the pent-up demand for multifamily housing, Wharton Equity aggressively began acquiring value-add properties in the southeast US, and purchased $400 million of assets within 3 years.
Wharton Equity Partners, formed in 1987 and with offices in New York City and Miami, is a diversified real estate sponsor with deep hands-on operating experience across various real estate assets and strategies. The firm serves as a holding company for a suite of real estate businesses, including Wharton Residential, Wharton Industrial, Wharton Hospitality and Wharton Urban, and has been involved with well in excess of $1 billion in transactions since inception.