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Wharton Residential Acquires 210-Unit Multifamily Property In Nashville, TN MSA

Wharton Residential Acquires 210-Unit Multifamily Property In Nashville, TN MSA

Continues Focus on the Acquisition of Value-Add Properties in Strong Secondary Markets

NEW YORK, NY — Wharton Residential, a Wharton Equity company, announces the acquisition of Cedar Pointe, a 210-unit multifamily property located in Antioch, TN. The property, built in 1988, was acquired from the original developer in an off-market transaction. The purchase follows almost $400 million of multifamily acquisitions and dispositions the firm has undertaken over the last few years which have generated annual weighted average returns in excess of 25%.

Antioch is an emerging sub-market in Nashville, TN catering to residents seeking workforce housing. “Cedar Pointe fits squarely with our strategy of purchasing assets in growing markets where we can use our 30-years of experience to upgrade the character of a property and provide a wonderful living experience at a great value,” says Peter C. Lewis, President and founder of Wharton Equity.

The firm, working closely with Tampa, FL-based design firm, CID Design, is planning an extensive overhaul of Cedar Pointe including: replacing the siding with HardiePlank, changing out the majority of windows; upgrading units; renovating the clubhouse, pool and leasing center and significantly augmenting landscaping. “We’re really excited about re-envisioning this asset by providing such touches as a gourmet outdoor kitchen, jet sprays in the pool, cabana area, fire pit, WiFi throughout and great areas for gathering in the clubhouse,” adds Lewis.

Antioch is located within 20 minutes of downtown Nashville and Nashville International Airport. The area is a beneficiary of the tremendous job growth the City is experiencing, particularly in the health care sector. Employers like HCA are in the immediate vicinity. Besides the robust job market, Nashville is one of the most sought-after places to live in the US with its professional sports teams, music industry, great culinary scene, and affordable lifestyle.

Wharton Residential, a family company of Wharton Equity Partners, is focused on the acquisition and development of multifamily properties primarily in the southeast United States. Over the last number of years, Wharton Residential has acquired in excess of $400 million of multifamily properties in partnership with major institutional and high net worth investors. 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.

Wharton Equity Purchases Land for 600,000 SF Spec Warehouses, Greenville, SC

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.

Wharton Urban Buys $20 Million, 2-Acre Site in Bay Harbor, Miami

Featured in The Real Deal: New York City Real Estate News

 

Wharton Equity Partners, Investment Partner Buy Taplin Property in Bay Harbor Islands for $20M

Plans call for a mixed-use project with Class A offices, boutique retail space and luxury rentals
 

By Ina Cordle

 
Wharton Equity Partners, through its Wharton Urban platform, and Northwood Ravin just bought the late Marty Taplin’s office building and property in Bay Harbor Islands for $20.25 million, with plans to develop a mixed-use project, The Real Deal has learned.

The site, at 1177 Kane Concourse, encompasses 1.82 acres of mostly vacant land and a surface parking lot, with an existing, 21,078-square-foot, three¬ story office building built in 1953. An additional 0.26-acre waterfront parcel at 9600 West Bay Harbor Drive also has an asphalt parking lot.

David E. Eisenberg , CEO of Wharton Equity Partners, told TRD that the joint venture’s preliminary plans are to develop a mixed-use project with Class A offices, boutique retail space and luxury apartment rentals. The exact size is not yet known, but the property is zoned B-1, allowing up to 65 feet, or about five stories of commercial and residential uses. The additional parcel is zoned Gateway, allowing for multifamily and apartments.

The seller is the 1177 Kane Concourse Partnership, owned by the Taplin family, which bought the property in 1994. It was tied up in a foreclosure for years, documents show, until the mortgage was paid off in Aug. 30, a few months after Taplin’s heirs sold the Sagamore Hotel for $63 million in April.

Eisenberg said he and his Wharton Equity partner, Peter C. Lewis, have had their eyes on the site for years. “We had met with Marty Taplin several times over the years to talk to him about either purchasing or joint venturing the development of this property,” Eisenberg told TRD.

“Its a huge, largely undeveloped parcel of commercially zoned property nestled between several very affluent communities,” he said.

The site’s proximity to Bal Harbour Shops also adds to its appeal, said Eisenberg, who envisions a gourmet market and boutique fitness facility as part of the tenant mix. “A similar type of retail to Sunset Harbour: a community oriented destination … which is something that doesn’t exist in this market.”

Wharton Equity, a real estate investment firm with offices in Miami and New York City, has been active in the Miami market in recent years. The firm, in partnership with Mack Real Estate Group. has just completed Eve at the District, a 500,000 square-foot, mixed-use project at Northeast 36th Street and Northeast First Avenue on the edge of the Design District and Midtown. Wharton also owns a 2.3-acre development site in the heart of Miami’s Central Business District, zoned for more than 2 million square feet of mixed-use development, including more than 2,200 residential units. And the firm also owns and is renovating the Sheraton Miami Airport Hotel in partnership with Hersha Hospitality and a New York private equity fund.

Northwood Ravin, founded by David Ravin, is a development, construction and property management firm that focuses on the Southeast. It has offices in Charlotte and Morrisville, North Carolina and Tampa, according to its website.

Bay Harbor Islands, a once sleepy town, is surging with new development. At least 26 new projects are in some stage of development on the neighborhood’s two islands, many of them boutique condo buildings and townhouses, including Sophie, Sereno, Akua, Bay Harbor Gardens, Pearl House and Le Jardin.

 

Wharton Residential Sells over $300 Million of its Multifamily Properties

Wharton Residential Sells over $300 Million of its Multifamily Properties

WEP harvests gains from properties acquired post-2012 after increasing values through extensive upgrade programs

NEW YORK/PRNewswire/ — Wharton Residential, a Wharton Equity company, announces the completion of the sale of a 900-unit portfolio in Central Florida it acquired with partners in 2012. The sale caps off a productive 2016 for Wharton Residential in which the firm sold over $300 million of multifamily properties which it purchased over the last few years in partnership with institutional investors. “Starting in 2012, we saw an opportunity to acquire properties in strong secondary markets, and purchased approximately 6,500 units during this time which we are now in the process of selling to recognize gains. To date, these sales have resulted in weighted average IRR’s well in excess of 20%,” notes Peter C. Lewis, President of Wharton Equity.

Wharton Equity, founded in 1987, and with offices in New York City and Miami, has a history of acquiring real estate slightly ahead of the curve and then selling when the markets ripen. “The driving investment philosophy of our firm for 30 years has been to capitalize on trends across all asset classes and strategies. Having been through a number of cycles, we felt strongly that multifamily assets would lead real estate out of the downturn, and decided to focus on secondary markets to reap the greatest arbitrage between cap rates and the cost of debt,” states Lewis.

The Florida portfolio is emblematic of Wharton Equity’s investment style as the firm was presented with the transaction from a REIT when another buyer dropped out of contract and moved quickly to acquire the assets in conjunction with a New York City hedge fund and property management firm. After adding value through improved operations, and upgrades the partnership was able to raise income and sell the properties at a substantial gain.

“Although the environment has gotten more challenging, we believe there are still opportunities to purchase properties today and are actively looking for assets, particularly those catering to workforce housing,” adds Lewis. Along these lines, Wharton Residential is about to close on a multifamily property in Nashville, TN that it is acquiring from the original developer. “This is exactly the type of property we want to be purchasing right now where we can completely transform an asset, located in a burgeoning market, which caters to middle income families. Within the next six months, we will expand our sights to include Class A properties in strong markets where we believe there will be downward pressure on pricing due to softening from over-building. This is in addition to our development activities, mostly in Florida and New York” he notes. In December 2016, the firm acquired a 2-acre property in the Bay Harbor/Bal Harbour sub-market in partnership with Northwood Ravin Investors where it plans on developing a mixed use project comprised of residential rentals, office and retail.

Wharton Equity Launches E-Commerce Industrial Platform

Wharton Equity Launches E-Commerce Industrial Platform

Developing 1 Million SF Warehouse/Distribution Facility in Atlanta

NEW YORK/PRNewswire/ — Wharton Equity Partners announced today the launch of its e-commerce industrial platform, Wharton Industrial, with the acquisition of an approximately 80-acre parcel of land in Atlanta. The property, which will be developed with a 1 million square foot warehouse/distribution facility is part of Shugart Farms, a master-planned industrial development with the potential of up to 14 million square feet. The project is a joint venture among Wharton Equity, Red Rock Developments, the Shugart family and a large real estate private equity firm. The Shugart family has owned the over 2,000 acres comprising Shugart farms for more than 50 years.

“We have been studying the effects that e-commerce is having on the logistics and distribution business and made a strategic decision to launch a major initiative to capitalize on what we believe will be significant opportunities in the many years ahead,” noted Peter C. Lewis, a founder and President of Wharton Equity. “It is our intent to build in excess of 10 million square feet over the next couple of years. In addition, we are keenly focused on acquiring obsolete warehouses around major cities and repositioning them into state-of-the-art properties that will attract “last-mile” users,” Lewis added.

The company will be concentrating on 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 Equity 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.

“One of the great joys of my career has been the ability to proactively seize opportunities around big ideas before they become apparent to the investment community at large,” says Lewis. “It has been very rewarding that this pioneering approach, which is often lonely, has resulted in out-sized gains for our partners over the last 30 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.

Peter C. Lewis, Guest Lecturer at Columbia Business School

Peter C. Lewis, Guest Lecturer at Columbia Business School

 
New York — Peter C. Lewis, Founder and Chairman of Wharton Equity Partners, was a guest lecturer at the Columbia Business School where he presented in front of two real estate finance classes on the topic of the “Future of Real Estate.”

“I was honored to be able to speak to the students at Columbia Business School where I was a student some 30 years ago,” noted Mr. Lewis. “It’s such an exciting time in the industry with changes that are occurring and I wanted to share how I see the world going forward and the opportunities that are unfolding,” he added.

Mr. Lewis speaks from experience when commenting on trends in real estate, as his firm, Wharton Equity Partners, has established a reputation over its 30-year existence for being on the forefront of capitalizing on change and being nimble in taking advantage of opportunities. For instance, post the recent downturn, Wharton Equity was an early investor in multifamily assets located in secondary markets where the firm acquired over $400 million in assets. In addition, Wharton Equity has recently made an assertive move into big box industrial development in light of the burgeoning growth of demand from e-commerce and manufacturing companies.

“Going back to Columbia reminded me of how special this institution is, and how it spawned my curiosity about business. There is an electricity at the school shaped by its global student body and speaking in front of this inquisitive audience was something I will treasure for a long time to come,“ said Lewis.

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.

Peter C. Lewis Featured Speaker at the New York City Family Office 2018 Outlook Forum

Peter C. Lewis Featured Speaker at the New York City Family Office 2018 Outlook Forum

 
New York — Peter C. Lewis, Founder and Chairman of Wharton Equity Partners, was the featured speaker at a family office conference held on December 12 at the law offices of Baker Hostetler located in Rockefeller Center.

Mr. Lewis’s presentation centered on his view on where real estate is headed in 2018 and beyond. He has spent a 30-year career observing trends and acting on these observations in selecting strategies for Wharton Equity to pursue. “Since founding Wharton Equity in 1987, we have chosen an investment approach which is agnostic to asset types or strategies. What governs where we invest is related to where we think things are going, rather than where they currently are,” notes Mr. Lewis.

For instance, capitalizing on the surge in e-commerce, the firm recently launched Wharton Industrial, a platform focused on the development of big box warehouses, as well as the acquisition of last-miles properties. The firm’s initial transaction is the development of a 1 million square foot warehouse/distribution facility located in Atlanta, GA. Additionally, in 2012, while others were targeting the primary markets for the acquisition of multifamily properties, Wharton Equity pursued secondary markets such as Savannah, Nashville and Charlotte, and acquired over $400 million of properties since that time. Finally, Wharton Equity was an early investor in self-storage amassing nearly 10,000 units before selling the properties to a public REIT and Northwestern Mutual Life Insurance.

“It has been one of the great joys of my career to have the freedom to pursue strategies that were pioneering at the time, and proved to be prescient in hindsight,” Mr. Lewis adds. “While there is obviously concern that the markets are getting over-heated, we see an enormous amount of opportunity in picking big themes to invest in, and letting time marinate our thesis.”

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.

Wharton Equity’s Midtown Mixed-Use Project Grand Opening

District 36 Grand Opening in Midtown Miami

 

Miami, FL – Developers Wharton Equity Partners and Mack Real Estate Group have completed construction of the Eve at the District, named after an art piece (“Eve”) by Hawaii-based artist Anna Sweet which is featured prominently in the lobby. The project injected 195 luxury rental units and over 61,000 square feet of retail/restaurant space in an area nestled between Midtown Miami and the Design District. Located at 3635 Northeast 1st Avenue, the developers employed Stantec for architecture and design services. Susan LaFleur, director of hospitality and residential interiors of Stantec’s Miami Office reveals, “Our design team was seeking a ‘wow factor’ that would immediately engage and intrigue the guest and set the sensual tone of the space. Eve did that so wonderfully that naming the project after her was obligatory.” Two additional pieces of work by Sweet, will be displayed in the new building’s public spaces.

City Furniture Signs as Flagship Tenant for WEP’s District 36 Building

Featured in The Real Deal

 

City Furniture Signs as Flagship Tenant for District 36

Lease is for 28,000 sf of project’s total 63k sf of commercial space plus 195 apartments
 
By Ina Cordle

Rendering of District 36, Irma Figueroa and Michael Comras

City Furniture just signed a lease as the flagship retail tenant at District 36, the new mixed-use project on the edge of Midtown Miami and the Design District.

The furniture showroom represents the first tenant for the recently completed property developed by Mack Real Estate Group and Wharton Equity Partners.

Comras Company CEO Michael Comras and Comras’ Irma Figueroa, director of retail leasing and sales, represented the developers in the 28,000-square-foot lease at 3635 Northeast First Avenue, according to a release. Monette Klein-O’Grady and Daniel W. O’Grady of Prime Sites Inc. represented City Furniture in what will be its first urban expansion. Terms of the lease were not disclosed.

The store will span the entire northern block of of Northeast 36th Street, from Northeast First Avenue to Northeast First Court, Comras said. The site will represent Tamarac-based City Furniture’s 17th showroom in Florida. 

In total, District 36 has 500,000 square feet, including 63,000 square feet of retail, showroom and café space, and 195 rental apartments above, at the intersection of Midtown Miami and the Design District.

Wharton Equity, a real estate investment firm with offices in Miami and New York City, has been active in the Miami market in recent years. In December, the firm, together with Northwood Ravin, bought the late Marty Taplin’s office building and property in Bay Harbor Islands for $20.25 million, with plans to develop a mixed-use project. Wharton Equity also owns a 2.3-acre development site in the heart of Miami’s Central Business District, zoned for more than 2 million square feet of mixed-use development, including more than 2,200 residential units. It also owns and is renovating the Sheraton Miami Airport Hotel in partnership with Hersha Hospitality and a New York private equity fund.

The area on the outskirts of the Design District is increasingly attracting furniture and furnishings stores, as showrooms continue to be priced out of the district’s core. Nearby, real estate investor Sam Herzberg bought the Brown Jordan building at 3625 Northeast Second Avenue for $13 million in May 2016. And art collector Ella Fontanals-Cisneros plans to redevelop a building for design-related tenants at 301 Northwest 36th Street, which she bought in February 2015 for $8 million.