Realizes Significant Gains Despite Cooling Investment Sales Environment

NEW YORK CITY – Validating its belief in the Philadelphia industrial market, Wharton Industrial, a platform company of New York City-based Wharton Equity Partners, and its JV partner, Walton Street Capital, have sold Twinbridge Industrial Park, a 37-asset, 1.3-million SF. portfolio in Pennsauken, NJ, 15 minutes from Center City, Philadelphia.

The price was $194.5 million and is one of the largest industrial transactions in New Jersey this year. The buyer of the portfolio was an affiliate of DRA Advisors, headquartered in New York City.

This is the second recent major success Wharton and Walton Street have achieved together in the area. Previously, the partnership completely repositioned a nearly 300,000 SF derelict former subway repair facility in South Philadelphia, which the partnership subsequently leased to Amazon. The property was ultimately sold, achieving an IRR of over 200%. The Twinbridge transaction also achieved a very attractive IRR of approximately 80%.

The Twinbridge portfolio had similar characteristics to the prior property, which had been disregarded by the local investment community, as the purchase was made against conventional wisdom in July 2020. At that time, COVID was becoming a significant factor and doubts abounded as to the impact the pandemic would have on the economy. “With over 50 tenants at Twinbridge, there was legitimate concern as to the sustainability of the tenancy”, notes Peter C. Lewis, Founder and Chairman of Wharton Industrial.

“Despite others who were fearful of investing at that time, we saw the portfolio as prime real estate that we believed would weather economic uncertainties,” says Mr. Lewis. “Supporting our belief were the low vacancies in the market, tightness of supply, proximity to Philadelphia and the diversity of tenants (many of whom were long-term occupiers providing essential services).  Our intuition was greatly rewarded, with rents increasing more than 100% during our three-year hold, through strategic property improvements and extensive leasing management.”

Furthering its contrarian thinking, Wharton and Walton Street elected to list the property for sale in the first quarter of this year, when high interest rates and fears of recession were leaving most potential sellers on the sidelines.

“Although there was risk in pursuing a sale in this climate, we believed that the quality of the properties, the growing interest in small bay industrial and the fact that there would be limited competing properties on the market would outweigh any headwinds,” says Lewis.

“We are obviously very pleased with the outcome.  We would not only like to thank our long-term partner, Walton Street, but also the CBRE team of Brad Ruppel, Mike Hines and Liam Fahey, as well as Marc Isdaner and Ian Richman from Colliers, who collectively provided us with superior representation on the sale.”

About Wharton Industrial

Wharton Industrial is a leading investor and developer of industrial real estate, with a focus on properties across the Eastern Seaboard, Florida, Southeast and Southwest. Steered by the company’s forward-thinking leadership team, Wharton has been extremely active in the industrial sector since 2017, acquiring last-mile distribution facilities in proximity to major urban markets, as well as developing big box spec development projects in the Southeast and flex industrial in the Southwest. Among other projects, the firm is currently developing a 1.5 million SF light industrial project in Mesa, AZ. Since inception, Wharton Industrial has completed, built and has in planning more than $1 billion in transactions, spanning over 11 million square feet.

Wharton Equity Partners is 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. The firm also has a venture capital arm, Wharton Equity Ventures (WEV), that is an active investor in growth companies targeting multi-billion markets. Most recently, WEV invested in Fabric, a hardware and software firm focused on automating micro fulfillment centers adjacent to major cities.

Connecticut property hosting bottled water company BlueTriton sells for $24.17M

from hartford business journal
By Michael Puffer

A 277,552-square-foot East Windsor, Connecticut warehouse hosting BlueTriton Brands Inc. recently sold for $24.17 million, nearly double what investors paid for the property a little more than a year ago.

Wharton Industrial, a subsidiary of New York City-based real estate investment firm Wharton Equity Partners, announced in October 2021 that it had acquired the warehouse at 18 Craftsman Road in a joint venture with Boston’s Long Wharf Capital.

At the time, Wharton said it planned to transform the vacant warehouse into a major shipping and distribution facility, capitalizing on proximity to interstates 84 and 91, as well as Bradley International Airport.

Records show a Wharton-affiliated limited liability company paid $12.3 million in October 2021 for the warehouse set on 40.2 acres at 18 Craftsman Road.

About three months later, Wharton announced bottled water producer BlueTriton Brands Inc. – formerly Nestle Waters North America – had signed a lease for the entire site.

The property sold for $24.17 million to three companies, all of which list the same Baltimore apartment as their principal business, state records show. That address is shared by Selko Real Estate Ventures LLC, an entity whose agent is Max Selig.

One buyer with a 29% share – 18 Craftsman TIC I LLC – also listed a second principal, 325 Midland Ave LLC, with an address at a residential property in Lawrence, New York.

The property was brokered for Wharton by CBRE and was on the market for about two months with multiple offers, according to CBRE Senior Vice President Christopher Metcalfe.

“There is a lot of land and there are some very functional aspects of the building, including a large amount of outside storage potential,” Metcalfe said. “Proximity to the highway is excellent. Just a good piece of real estate.”

Metcalfe described Selko as a “trustworthy buyer” with additional assets in Connecticut and the region.

Featured in Harvard Business Journal

East Windsor Property Hosting Bottled Water Company BlueTriton Sells For $24.17M

January 19, 2023

By Michael Puffer

A 277,552-square-foot East Windsor warehouse hosting BlueTriton Brands Inc. recently sold for $24.17 million, nearly double what investors paid for the property a little more than a year ago.

Wharton Industrial, a subsidiary of New York City-based real estate investment firm Wharton Equity Partners, announced in October 2021 that is had acquired the warehouse at 18 Craftsman Road in a joint venture with Boston’s Long Wharf Capital.

At the time, Wharton said it planned to transform the vacant warehouse into a major shipping and distribution facility, capitalizing on proximity to interstates 84 and 91, as well as Bradley International Airport.

Records show a Wharton-affiliated limited liability company paid $12.3 million in October 2021 for the warehouse set on 40.2 acres at 18 Craftsman Road.

About three months later, Wharton announced bottled water producer BlueTriton Brands Inc. – formerly nestle Waters North America – had signed a lease for the entire site.

The property sold for $24.17 million to three companies, all of which list the same Baltimore apartment as their principal business, state records show.  That address is shared by Selko Real Estate Ventures LLC, an entity whose agent is Max Selig.

One buyer with a 29% share – 18 Craftsman TIC I LLC – also listed a second principal, 325 Midland Ave LLC, with an address at a residential property in Lawrence, New York.

The property was brokered for Wharton by CBRE and was on the market for about two months with multiple offers, according to CBRE Senior Vice President Christopher Metcalfe.

“There is a lot of land and there are some very functional aspects of the building, including a large amount of outside storage potential,” Metcalfe said. “Proximity to the highway is excellent.  Just a good piece of real estate.”

Metcalfe described Selko as a “trustworthy buyer” with additional assets in Connecticut and the region.

Adds to its Growing Collection of Last Mile Assets

Wharton Industrial, a platform of real estate investment firm Wharton Equity Partners, along with an institutional partner, announced today that it has acquired 2 more warehouses, one in Pennsauken, NJ and the other in Birdsboro, PA. The purchase prices of the properties were not disclosed.

The first property, a 189,498 square feet warehouse located at 9130 Griffith Morgan Lane in Pennsauken, was built in 1980 and most recently renovated in 2020, during which time the current tenant installed a new roof, solar panels, and air conditioning to climate control the entire warehouse. It is equipped with 18 loading positions and 1 drive in door but has knock out panels to cost-effectively add up to an additional 10 loading doors which is planned as part of the future capital improvement program. Ceiling heights are 24 feet.

The 100% occupied building is located just off Route 73, offers easy access to nearby Philadelphia via the Betsy Ross Bridge, Walt Whitman Bridge and Ben Franklin Bridge, and sits just a short drive from I-295 and the New Jersey Turnpike. Marc Isdaner and Ian Richman of Colliers International served as brokers for the sale.

The building is within minutes of Wharton Industrial’s Twinbridge Industrial Park, a 1.3 million-square foot, 35-building warehouse complex also in Pennsauken, which it acquired two years ago with Walton Street Capital.

The second property, a 135,900 square foot facility at 5 East Pointe Drive, Birdsboro, PA, is also 100% occupied and was acquired from the user in a sale leaseback transaction. The property was constructed in 2005 and has over 50 trailer spaces and 300 car parking spaces, which are highly valued in the market, 2 loading docks ,16 drive in doors, LED lighting and abundant power.  Upon the end of the leaseback period in two years, Wharton will undertake an extensive renovation program to enhance site circulation, increase loading positions, and upgrade the warehouse interior for marketing towards the highly active logistics and manufacturing userbase of suburban Philadelphia and central Pennsylvania.

Birdsboro sits at the confluence of the major highways of I-176 and US-422, about 30 miles to the Lehigh Valley, 50 miles from Center City Philadelphia, and 60 miles from Harrisburg. Nick Adams and Harry McKenna of Jackson Cross Partners were the brokers for the transaction.

“We are delighted to have added these properties to our stable of infill warehouses we continue to assemble in southern New Jersey and central Pennsylvania,” notes Peter C. Lewis, Chairman of Wharton Industrial. “While we are surely cognizant of the current macroeconomic environment, we maintain our strong, long-term belief in this region and are unwavering in our appetite to acquire great properties, irrespective of temporary market conditions,” he adds.

About Wharton Industrial

Wharton Industrial, a platform company of real estate investment firm Wharton Equity Partners, 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 acquiring last-mile distribution facilities in proximity to major urban markets as well as developing big box and light manufacturing development projects in the southeast and southwest. Wharton Industrial has completed and has in its pipeline over $1 billion of industrial transactions.  Wharton Equity Partners, founded in 1987, is an innovative real estate investment firm with extensive experience acquiring, developing, and operating a wide range of real estate asset classes since its inception. The firm also has a venture capital arm, Wharton Equity Ventures, that is an active investor in growth companies targeting multi-billion markets.

Transaction caps busy month for national investment firm, following the sale of a mixed-use tower in Miami

MONTROSE, COLO. (July 28, 2022) — Wharton Hospitality, an operating platform of real estate investment firm Wharton Equity Partners, announced today that they have sold the Holiday Inn Express & Suites in Montrose, Colorado. The buyer and purchase price were not disclosed.

Wharton purchased the 122-key building during 2011 in an off-market transaction with a local lender. The acquisition was made in partnership with an affiliate of Waramug Hospitality, a national hotel investment firm.

In the subsequent years, the partnership oversaw a multi-million dollar renovation effort to enhance the property’s long-term value, and secured a renewed franchise agreement with Holiday Inn Express. Management of the hotel was taken over by IHG, which embarked on a significant marketing program than resulted in a dramatic increase in REVPAR.

“This transaction is a testament to the success of Wharton Hospitality’s core investment strategy, focused on the purchase and repositioning of well-located hotels in select, high-growth markets,“ said Peter C. Lewis, Chairman of Wharton Hospitality. “This asset’s position in the heart of a prime year-round tourism destination, along with the efforts of our firm and our partners, has allowed us to realize significant returns for our partners. We are proud to finalize this sale, and we look forward to exploring other opportunities in the hospitality market in the months and years ahead.”

Originally constructed in 1997, the hotel is located off of US Route 550, approximately 60 miles southeast of Grand Junction, Colo. and 60 miles north of Telluride Ski Resort in Telluride, Colo. On-site amenities include several meeting rooms, a full liquor bar, outdoor barbecue area, indoor swimming pool and fitness center, and many guests arrive from the Montrose Regional Airport, located just three miles away.

Wharton Hospitality invests in limited-service hotels in high-barrier to entry markets, with a focus on centers on strong, branded properties such as Marriott, Hilton, Hyatt and IHG. Other significant assets in its portfolio include the Sheraton Miami Airport Hotel in Miami, Fl., and The Hilton Lexington Downtown in Lexington, Ky. In addition, Wharton Hospitality is expanding into “lifestyle” lodging where the focus in more on leisure customers versus corporate.

The transaction caps a busy month for Wharton Equity Partners, which also completed the sale of ‘Eve at the District’ – a 400,000-square foot mixed-use project in Miami, Florida, through its Wharton Urban platform.

About Wharton Equity Partners

Wharton Equity Partners is a New York City-based investment with significant roots as a real estate owner, developer, and operator. Since its inception in 1987 as a developer of large-scale residential communities, the firm has shown an innate ability to foresee macroeconomic trends and move with conviction to invest in emerging opportunities. Today, Wharton Equity has a family of wholly-owned platform businesses which provides the company with the agility and expertise to act on a wide variety of transactions, including venture capital investing. This flexible philosophy has enabled Wharton Equity to generate superior returns over various business cycles and garner unrivaled trust, earned through proven performance.

National investment firm had developed the 500,000-SF mixed-use property in 2016

MIAMI (July 5, 2022) — Wharton Urban, an operating platform of real estate investment firm Wharton Equity Partners, announced today that they have sold the “Eve at the District”, a 500,000-square-foot, mixed-use project in Miami, Florida. Terms of the transaction were not disclosed.

Wharton developed the 18-story building in partnership with Mack Real Estate Group in 2016. The property includes 194 luxury apartments, as well as 65,000 square feet of ground-floor retail space.

“This building represents one of our earliest major investments in the Miami market, as we were ahead of the curve in recognizing its potential as a growing destination for renters attracted to its unique culture and lifestyle. That vision has paid significant dividends, with the city’s rental housing market having exploded in recent years as it continues to add jobs and new residents,“ said Peter C. Lewis, Chairman of Wharton Urban. “We are extremely proud of our work on this building and are grateful to all of our partners as we finalize this successful sale and continue to generate notable returns for our investors.”

Eve at the District offers renters a luxury living experience that includes spacious floor plans; floor-to-ceiling windows affording ample natural light; and a variety of modern finishes, such as stainless steel kitchen appliances and quartz countertops. Residents also have access to a world-class amenity suite, including a community pool; a hot tub; a state-of-the-art fitness center; and an on-site yoga studio.

The property is located within walking distance to many major shopping centers and restaurants in Miami’s Midtown, Wynwood and Design District neighborhoods.

Wharton Equity Partners has been particularly active in the Miami market in recent years. In 2021, the firm sold a 1.82-acre development site at 1177 Kane Concourse in Miami’s Bay Harbor Islands submarket to Terra Group for $31.5 million, as well as a prime 2-acre development parcel at 16 Southeast 2nd Street in downtown Miami that is zoned for a 2-million-square-foot mixed-use development, for $46.0 million. Wharton is also an owner of the Sheraton Miami Airport Hotel.

About Wharton Equity Partners

Wharton Equity Partners is a New York City-based investment with significant roots as a real estate owner, developer, and operator. Since its inception in 1987 as a developer of large-scale residential communities, the firm has shown an innate ability to foresee macroeconomic trends and move with conviction to invest in emerging opportunities. Today, Wharton Equity has a family of wholly-owned platform businesses which provides the company with the agility and expertise to act on a wide variety of transactions, including venture capital investing. This flexible philosophy has enabled Wharton Equity to generate superior returns over various business cycles and garner unrivaled trust, earned through proven performance.

Wharton Industrial Announces $80 Million Sale of 1 Million SF Warehouse it co-Developed, Leased to Major Clothing Brand

Atlanta, GA. – (Nov. 25, 2020) Wharton Industrial announces they have sold their 1 million square foot development project in Atlanta, GA to Granite Real Estate Investment Trust for $80 million. The Property is fully-leased to PVH Corp., the company behind clothing brands including Calvin Klein and Tommy Hilfiger.  The recently-completed building was developed and built by Wharton Industrial, Red Rock Developments and an affiliate of Starwood Capital Group.

PVH Corp. has signed a 20-year lease at the distribution building, which is part of an industrial real estate project along Interstate 85 just south of Atlanta called Shugart Farms. Jones Lang LaSalle provided advisory services to the owners.

PVH invested $77.6 million into the distribution center and warehouse.  The company will create 575 jobs, according to a release. In a statement Thursday, Gov. Brian Kemp’s office said the project will bring more business to the Port of Savannah.

PVH, formerly known by the brand Phillips-Van Heusen, has six divisions including Calvin Klein North America, Tommy Hilfiger North America and Heritage Brands Wholesale.

Wharton Industrial is a platform company of Wharton Equity Partners, a New York City-based real estate investment firm founded in 1987. Since the formation of Wharton Industrial in late 2017, the firm has been involved in approximately $400 million of transactions (and almost 5 million SF), focused on the development of large distribution centers in the southeast US and the acquisition and repositioning of last mile industrial facilities along the Eastern seaboard.

WEP’s Wharton Urban platform sells ‘Kane Concourse’

slated for mixed-use development four years after acquisition

MIAMI (June 8, 2021) — Wharton Urban, a platform of real estate investment firm Wharton Equity Partners, announced today that it has sold its 1.82-acre development site at 1177 Kane Concourse in Miami’s Bay Harbor Islands submarket to Terra Group for $31.5 million.

Wharton Urban initially acquired the strategically located site in 2017 through an off-market  deal. The site comprises mostly vacant land with an existing 21,078-square-foot, three-story office building built in 1953, as well as a surface parking lot.

“With so much activity in the Miami submarkets, this was an ideal time to redeploy capital throughout the region to serve other planned projects and support Wharton Urban’s long-term strategy of developing state-of-the-art, mixed-use properties in vibrant metropolitan centers,” said Peter C. Lewis, Chairman of Wharton Equity Partners. “We’re happy to have reached a sale agreement with Terra Group, a long-respected fellow developer in this area, and look forward to building our pipeline even further across the burgeoning South Florida region.”

Kane Concourse is commercially zoned and ideally situated between several affluent communities along West Bay Harbor Drive, just above Indian Creek Island and two miles north of Miami Beach. It also sits in close proximity to Bal Harbour Shops — the 511,000-square-foot, open-air shopping center.

“The potential of this property is exponential as this particular submarket undergoes a period of breakneck growth, with excellent proximity to desirable residential areas and neighboring shopping, dining, and other lifestyle amenities,” said David E. Eisenberg, CEO and head of Wharton’s Miami office. “This parcel of land is ideally zoned and we were happy to work with Terra Group on this transaction — we look forward to executing on further projects in the Miami area and following the future development of Kane Concourse.”

Wharton Equity Partners has been active in the Miami market in recent years, and currently owns the Eve at the District, a 500,000-square-foot mixed-use project at Northeast 36th Street and Northeast First Avenue; a 2.2-acre development site in the heart of Miami’s Central Business District, zoned for more than 2 million square feet of mixed-use development; and the Sheraton Miami Airport Hotel, among other properties.

Terra Group is an integrated South Florida development firm whose portfolio includes luxury high-rises, single family homes, townhouses, retail shopping centers, office space and multifamily apartments, both in urban and suburban areas — most recently in neighborhoods like Coconut Grove, Miami Beach, Doral and Weston.

About Wharton Equity Partners

Wharton Equity Partners is a privately held investment and development firm that has repeatedly demonstrated an ability to capitalize on large thematic trends before other real estate market participants. Since 1987, it has employed its innovative approach and extensive experience to acquire, develop and operate a wide range of asset classes, including industrial, hospitality, multifamily and single-family real estate. With more than $2 billion of transactions spanning business cycles, strategies and property types, Wharton has a long and substantial track record of generating significant returns for its investors while being relentlessly focused on the preservation of capital.

Leading industrial developer and investor acquires 280,000 SF of industrial properties in Southern New Jersey

PHILADELPHIA (July 20, 2021) — Wharton Industrial, a platform of real estate investment firm Wharton Equity Partners, announced today that it has acquired six industrial properties in Southern New Jersey, located in Pennsauken, N.J. and Cherry Hill, N.J. The purchase prices were not disclosed.

The acquisitions include a three-building, 153,400-square-foot portfolio located in Pennsauken, N.J. which Wharton Industrial acquired with Walton Street Capital.  The portfolio is located within Wharton Industrial’s Twinbridge Industrial Park, a 1.1 million-square foot, 32-building warehouse complex which it acquired last year with Walton Street.  The 100% occupied park is located just off Route 73, the buildings offer easy access to nearby Philadelphia via the Betsy Ross Bridge, Walt Whitman Bridge and Ben Franklin Bridge, and sits just a short drive from I-295 and the New Jersey Turnpike. Tom Palumbo and Bill Sitar of Sitar Realty served as brokers for the sale.

The remaining properties acquired by Wharton Industrial is an approximately 130,000 square foot, 3-building portfolio located in the Cherry Hill, N.J. submarket, which the firm acquired off-market from a long-term owner. As with the Pennsauken portfolio, Wharton Industrial will be instituting a comprehensive capital improvement program including replacing certain roofs, upgrading landscaping, repairing and painting exteriors, improving truck loading stations and paying.

“Southern New Jersey and the rest of Greater Philadelphia is home to one of the hottest and most promising industrial markets in the country, and these new acquisitions are a testament to our confidence in its continued growth potential,” said Peter C. Lewis, Founder & Chairman of Wharton Equity Partners. “As the largest industrial landlord in Pennsauken, we’ve witnessed the enduring appeal of this market first-hand, and the assets we have acquired in the Cherry Hill area represent a perfect fit with our strategy of acquiring first-class buildings in densely populated markets.”

Among its other activities, Wharton Industrial is also the developer behind the 283,500-square foot SoPhi Logistics Center in South Philadelphia — a formerly defunct railcar facility which Wharton transformed into a first-class last-mile delivery facility. The building was leased to Amazon in its entirety before being sold for $71.5 million in late 2020.

Besides its last mile strategy, Wharton Industrial has a long track record of developing modern warehouse and industrial facilities in proximity to highly populated metropolitan centers, often leasing them to major e-commerce and retail tenants. Its other holdings and past developments include a 988,000-square foot warehouse in Atlanta (leased to Philips Van Heusen); a 510,000-square-foot industrial facility in Lakeland, Florida; a 617,000 square-foot warehouse in Ocala, Florida (leased to Amazon); and a two-building, 600,000-square-foot industrial development in Greenville, South Carolina.  All these properties were sold in the last 12 months generating gross sales proceeds of approximately $250 million and gross weighted average IRR in excess of 44%.

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 acquiring last-mile distribution facilities in proximity to major urban markets as well as developing big box spec development projects in the southeast. To date, Wharton Industrial is nearing $500 million in transactions.  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%.

Featured in GlobeSt.com Daily News

Wharton Equity Partners Acquires Key Development Site

MHN Exclusive

By Jon Jordan

Miami —Wharton Equity Partners of New York City, through its Wharton Urban platform, reports it has taken title to one of the largest remaining undeveloped parcels of land in the Miami CBD, a full city block comprised of approximately 2.2 acres.

The firm states that the property was acquired through a deed in lieu of foreclosure on a note that Wharton Equity purchased from IberiaBank earlier this year. The note was acquired with an institutional partner in an “all cash” transaction that closed in under 30 days from contract signing. No financial terms of the transaction were released.

The partnership has begun evaluating options for the “Burdines Site” property, including development, joint venture and/or sale. The property was approved for a 2.2-million-square-foot mixed-use project designed by Pei Partners (IM Pei) and Miami-based Oppenheim Architecture+Design. The prior approval included residential, hotel, retail and office components as part of the project, company officials state.

The property is within a few blocks of a number of high-profile projects that are under construction including Met 3, a mixed-use project consisting of a new Whole Foods Market at street level with 462 high end residential units, and Brickell CityCentre, a nearly 4-million-square foot mixed-use project located in Mary Brickell Village.

“We are a great believer in the long-term prospects of South Florida, and in particular Miami, and expect to acquire other major assets in the market in the coming months,” states Peter C. Lewis, chairman of Wharton Equity Partners.

David E. Eisenberg, CEO of Wharton Equity Partners adds, “We viewed the note purchase as a unique opportunity to control one of the most significant undeveloped properties in downtown Miami at a time when demand for land is rising and remaining land is scarce.”

Sale comes after successful development of modern distribution center in the heart of growing Lakeland industrial market 

Plant City, Fla. (June 16, 2021) — Wharton Industrial, a platform of real estate investment firm Wharton Equity Partners, announced today that it has sold its 510,000-square-foot industrial facility in Plant City, Florida, to an undisclosed institutional buyer.

Wharton Industrial initially secured the 34-acre Lakeland submarket site in 2019 through an off-market transaction. It then partnered with Red Rock Developments to develop the property into a state-of-the-art distribution center, which the purchaser acquired upon its completion.

“Wharton Industrial recognized the incredible potential of this site two years ago, and our vision for it has been realized as this modern distribution facility is now located in the heart of a burgeoning hub for industrial and last-mile delivery,” said Peter C. Lewis, Chairman of Wharton Industrial. “We are thrilled to cap our successful development process with a sale to a respected REIT that will not only generate significant returns for our investors, but help meet the growing demand for top-of-the-line warehouse space across the Southeast and the rest of the Eastern U.S.”

Central Florida has become a key warehouse distribution market in recent years, affording tenants such as Publix, Kroger, Home Depot, PepsiCo and Amazon prime access to Atlanta, the Port of Savannah, Orlando, Tampa, Miami and other growing markets in the Southeast. The region is also home to a number of existing or planned industrial facilities that are fully automated.

“While developing this site on a speculative basis, we were confident in the potential of the region to continue attracting high-quality companies and our experience in developing state-of-the-art warehousing product with respected partners,” Lewis add. “Following our success in Lakeland and our recent sale of a 600,000-square-foot development in Ocala, which we leased to Amazon, we’re looking forward to deploying more capital across Central Florida and beyond as we continue identifying growing industrial hubs well ahead of our peers.”

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%.

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 Equity Partners Hires Ronald Uretta as COO to Guide Firm’s Continued Growth

Seasoned industry veteran tapped to oversee firm’s operations and risk management as Wharton expands its platform businesses

NEW YORK (April 1, 2021) — Real estate investment firm Wharton Equity Partners announced today that it has hired Ronald Uretta as Chief Operating Officer. As COO, Uretta will report directly to Founder and Chairman, Peter C. Lewis, in the New York office, and oversee all aspects of administration and operational functions of the firm, as well as being involved in investment strategy and execution.

Coming off a landmark year in which Wharton saw record sales and acquisition activity in its industrial platform, Uretta will help optimize processes and growth across Wharton Equity Partners’ array of real estate platforms — Wharton Industrial, Wharton Residential, Wharton Hospitality and Wharton Urban — creating efficiencies and synergies across the different business lines.

“Wharton Equity is in significant growth mode as we continue to build out our platform businesses. For instance, over the past 12 months, our early investments in industrial real estate have paid significant dividends, and Ron is a valued addition who will help us scale our development and investment activity in this sector,” said Lewis. “Ron’s business acumen and the background he brings in investment management and asset repositioning will be key to helping us reach new heights across both industrial real estate and our other initiatives.”

As a senior executive with over two decades of experience across both private and publicly held organizations, Uretta specializes in managing business processes for companies with ties to the real estate industry. Over the course of his career, he has also been highly involved with securing investments, aligning firms’ core business and revenue goals, managing risk, and leading strategic asset repositioning for commercial real estate firms.

Prior to Wharton, Uretta served as Managing Director at asset management firm CIII Capital Partners, where he oversaw risk management and major capital renovation projects for a portfolio of properties across the Northeast and Miami. In this role, he also oversaw a redesign of CIII’s insurance program, streamlining claims and slashing costs dramatically.

Earlier in his career, Uretta was the CFO and COO of international real estate services company Insignia Financial Group (NYSE: IFS), where he oversaw operations for the 12,000-person, $1-billion revenue company. Uretta built out several primary platforms for Insignia, including the firm’s tenant representation, property management and corporate real estate advisory functions. He also created and managed the firm’s operations and infrastructure for over 60 domestic and foreign markets. 

“After my work as a COO at previous companies, I’m excited to have made this move to Wharton and am eager to bring my risk and investment management experience to Peter’s team,” said Uretta. “I look forward to working with the company to provide operational oversight, help streamline activities for Wharton’s robust pipeline of projects, and optimize the firm’s acquisition and development processes.”

Uretta earned his bachelor’s degree in Business Administration in Accounting & Business from Waynesburg University. In 2019 he received a Certificate of Completion in Commercial Real Estate Analysis and Investments from MIT. Uretta is a trustee of the New York State Troopers Signal 30 Fund for Christian’s Medical Support, and served as a mentor for the NYU Stern School of Business – Berkley Center for Entrepreneurship & Innovation. A resident of Harrison, N.Y., Uretta also previously served as a council member for the town’s Citizen’s Advisory Committee.

About Wharton Equity Partners

Wharton Equity Partners is a privately held investment and development firm that has repeatedly demonstrated an ability to capitalize on large thematic trends before other real estate market participants. Since 1987, it has employed its innovative approach and extensive experience to acquire, develop and operate a wide range of asset classes, including industrial, hospitality, multifamily and single-family real estate. With more than $2 billion of transactions spanning business cycles, strategies and property types, Wharton has a long and substantial track record of generating significant returns for its investors while being relentlessly focused on the preservation of capital.

Wharton Industrial Hires Two Key New Professionals to Bolster its Northeast Acquisitions Activities

Scott Guo and Nick Aileo will manage investment firm’s growing pipeline of industrial and last-mile delivery transactions

NEW YORK (Feb. 18, 2021) — Wharton Industrial, a platform company of real estate investment firm Wharton Equity Partners, announced today that it has hired Scott X. Guo as Senior Vice President and Head of Acquisitions and Nick Aileo as Associate. Guo will lead all origination and underwriting activity for Wharton Industrial, while Aileo will support sourcing, underwriting and execution of all transactions.

Both will report directly to Peter C. Lewis, President of Wharton Industrial and will continue to grow the company’s robust portfolio of last-mile and big box distribution centers across the Northeast, Florida and the Southeast.

“As the rise of e-commerce and other shifts in consumer behavior continue to fuel rapid growth in the industrial sector, it is more important than ever to have skilled acquisition and leasing professionals like Scott and Nick here at Wharton,” said Lewis. “Their combined expertise will be critical as we expand our industrial platform and create vital last-mile distribution centers, cold storage facilities and other first-class properties in our target markets. We are extremely thankful to have both of them on board as we continue to fulfill our vision to shape the next phase of this rapidly evolving market.”

Guo previously worked at Exeter Property Group, where he spearheaded acquisitions and leasing for Exeter’s portfolio of over 24 million square feet of industrial and office assets across New Jersey, New York, Connecticut and Massachusetts. While at Exeter, he helped to acquire and develop 3.4 million square feet of big box, last-mile, infill, and flex industrial product and stabilized Exeter’s northern Northeast value-add portfolio totaling 3.8 million square feet by raising portfolio occupancy from 78 percent to 94 percent.

Guo is a veteran of the U.S. Army, where, as a Captain, he led two infantry platoons through 21 months of combat, global advisory, and training missions. He holds an MBA with a concentration in finance and real estate from Cornell University, as well as a bachelor’s degree in international relations and history from Boston University.

“After studying Wharton’s activity in the market for quite some time, I was eager to join an entrepreneurial team that has already positioned itself at the forefront of the country’s industrial and last-mile delivery markets,” said Guo. “Having worked extensively across the Northeast, I’m honored to work alongside so many experienced and talented professionals in this sector, and look forward to lending my unique skills to continue the firm’s incredible momentum in the years to come.”

Aileo was formerly a senior analyst with Saxum Real Estate, where he underwrote acquisition and ground-up development opportunities valued at over $2 billion to date. He had a particular focus on cold storage industrial, office and multifamily/mixed-use, along with select retail, student housing, and hotel deals, including nearly $450 million of current development projects. Prior to Exeter, Aileo was a financial analyst with Avison Young. He received his bachelor’s degree in business administration, with a focus on real estate and finance, from Villanova University.

Guo will be based in Philadelphia, one of Wharton’s most active target markets, while Aileo will work out of the New York office to focus on Wharton’s northern New Jersey, Long Island and Connecticut pipeline.

Wharton Industrial had a successful 2020 as e-commerce skyrocketed amid the pandemic, making headlines with milestone industrial deals — most recently, its sale of the  283,000-square-foot SoPhi Logistics Center in Philadelphia, occupied by Amazon, to GLP Capital Partners in November. In July, Wharton sold its 617,000-square-foot warehouse and distribution facility, Florida Crossroads Logistics Center, which is also occupied by Amazon, and sold its nearly 1 million-square-foot bulk distribution development in Atlanta, occupied by Philips van Heusen, to a private REIT. On the acquisitions front, transactions included the purchase of a 32-building industrial portfolio totaling 1.1 million square feet in Pennsauken, New Jersey in August.

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 US. Steered by the company’s forward-thinking leadership team, Wharton has been on the forefront of strategy in the industrial sector since 2017, acquiring 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 formed in 1987 with extensive experience acquiring, developing and operating a wide range of real estate asset classes. Before shifting to building out its industrial platform, Wharton Equity Partners, through its Wharton Residential platform, was an early mover in secondary-market multifamily investment, where it amassed a large portfolio of value-add apartment properties across the South and Midwest, which it ultimately sold for an IRR well more than 20%.

Why a New York Real Estate Investor is Betting Big on South Jersey’s Industrial Market

In his more than 30 years working in the real estate industry, Peter Lewis hasn’t seen anything like it.

The president and founder of New York-based real estate investment firm Wharton Equity Partners has owned everything from hotels and apartment buildings to self-storage facilities over the past few decades, but the shift currently hitting the industrial real estate world is unlike any he’s encountered.

“In my career, I’ve never seen an asset class like industrial be so affected by the change in technology,” said Lewis, who has lectured on the topic and future of the real estate industry at Columbia Business School.

That’s one of the reasons why his firm has doubled down on industrial properties and on Friday teamed up with an investment fund tied to Walton Street Capital to buy up a sprawling 32-building industrial portfolio in Pennsauken for an undisclosed sum. The properties, about one-third of all investment properties in the township, are in the heart of one of South Jersey’s most in-demand areas – a demand he thinks will only climb.

“This is early. We are so early in this. We’re going to look back and view this as the first inning of what’s happening in the transformation of industrial,” he said.

While Lewis is bullish about industrial nationwide, he’s set his sights on the Philadelphia region for the same reasons it’s caught the attention of other out-of-state investors: its central location between Washington and New York, strong eds and meds sectors, skilled workforce, and major transit assets.

Wharton Industrial Signs Lease for Entire 283,000 SF Last-Mile Warehouse in Philadelphia, PA

Philadelphia Business Journal Sep 10, 2019 — An affiliate of Wharton Equity Partners along with Walton Street Capital Partners has acquired 2400 Weccacoe Ave., a 283,500-square-foot property in Philadelphia that was once occupied by Hyundai Rotem, a South Korean company that made train cars for SEPTA.

The sale price was $16.75 million, according to property records. The building on 13.5 acres was vacant at the time the Wharton partnership bought it. The property has been in limbo for some time. Hyundai Rotem had signed a 10-year lease on the space with two five-year extensions in 2007 but ended up wrapping up operations and emptying out of the building last year.

The Wharton affiliate, Wharton Industrial, acquired the property from Rimas Properties, a Philadelphia real estate company that had purchased it in July 2006 for $7.6 million from Everett Novak of Unique Industries, according to Philadelphia property records. Rimas then leased it to Rotem.

Wharton has big plans for the property. It has started a $10 million redevelopment of the building that includes tearing out the rail beds, installing a new roof, leveling interior floors, and upgrading loading docks among other upgrades. The renovations are expected to be completed in early 2020.  See video.

The renovations are part of Wharton’s plans to seize on market forces catering to the growth of online retail. The property has access to interstates 95 and 76, Philadelphia International Airport, PhilaPort and the Packer Avenue Marine Terminal. It is also adjacent to Center City.

The new owner plans to rebrand 2400 Weccacoe as SoPhi Logistics Center and will try to attract tenants who want last-mile distribution or even last-step distribution. UPS has for years operated a distribution center adjacent to the property.

“There really hasn’t been something to serve Center City,” said Michael Mullen, who along with Patrick Green of CBRE Inc. arranged the sale to Wharton. Mullen, Green and Jake Terkanian are overseeing leasing the property.

Industrial property is a relatively new focus for Wharton. “Our business model has always been looking around the corners and figuring out what is next,” said Peter C. Lewis, president of Wharton Equity.

In 2012, the New York real estate company began what ended up becoming a $400 million investment in multifamily properties in secondary markets between Boston and Miami where apartment real estate wasn’t as expensive to buy compared with primary gateway markets. “Our belief was that in a healing economy, the one place we know will be successful is multifamily because people need a place to live,” Lewis said. “The cost of debt was the same if you were buying in Greenville or New York City.”

Once Lewis sensed the multifamily sector was getting overbought, the company sold its portfolio and began in 2017 to invest in industrial properties.

“The big feeling is industrial is undergoing a once-in-a-generation change because of the affect of e-commerce,” Lewis said. “Because of Amazon and Amazon Prime, which moved from two-day to one-day delivery, the question became how are goods going to get into cities that quickly?”

That means buying properties next to major populations to take advantage of these companies and distribution, an area the company has been focused on ever since.

“I think in many ways this property is emblematic of what a last-mile distribution facility will be in the future,” Lewis said. “A tired, old warehouse that had another use.”

During the 1990s, Unique Industries, a manufacturer of party supplies, owned the building and used it for its operations. Unique sold it to Rimas and Hyundai Rotem was the last company to occupy 2400 Weccacoe when it was awarded a $274 million SEPTA contract in 2006 to build rail cars for SEPTA and other transit agencies.

The company arrived in Philadelphia with great fanfare, promising jobs and a long tenure in the city. In April 2006, Pennsylvania officials had announced Hyundai Rotem would relocate its U.S. headquarters to Philadelphia from Englewood Cliffs, New Jersey.

At the time, the company received a $5 million loan through the Citizens Job Bank, a public-private partnership created between Pennsylvania and Citizens Bank to help job growth within the state. It also got another $2.2 million from the state in financial incentives to create about 215 jobs. It went downhill from there.

The building had been constructed in the 1960s and 1970s and Rotem spent in excess of $20 million renovating it. Rotem ultimately produced defective rail cars for SEPTA and closed.

Wharton Industrial Closes Out Banner Year in 2020,with Deal Activity of Nearly $300 Million

Flurry of sales, leasing and acquisition activity highlight company’s success in increasingly competitive, tech-driven industrial sector

NEW YORK — Wharton Industrial, a leading investor and developer of warehouse and logistics properties, is pleased to announce the success of its portfolio in 2020, with deal activity totaling nearly $300 million.

Overall, leasing at Wharton Industrial warehouses in 2020 was well in excess of 1 million square feet, and the company sold three properties for aggregate proceeds of more than $200 million. In addition, the company expanded its pipeline with the acquisition of a 32-building. 1.1-million-square-foot portfolio of warehouses in southern New Jersey.

These successes come just three and a half years after Wharton Equity Partner’s founder, Peter C. Lewis, decided to pivot from investing in multifamily properties (selling its $500 million portfolio), forming Wharton Industrial in late 2017 to capitalize on the secular growth of e-commerce and related demand for warehousing and last-mile delivery space. 

“For more than three decades, we’ve become known for proactively identifying market demand to stay ahead of the curve, and to make concentrated bets on our convictions; our early entrance to the industrial space is now bearing fruit,” said Mr. Lewis. “As e-commerce and other forms of technology continue to change our society, the industrial market is the primary beneficiary, and we expect the amount of opportunities in this sector to swell. With the introduction of robotics and other forms of innovations that enhance industrial operations, the lines between real estate and tech are beginning to blur, and this will position forward-thinking investors as uniquely capable custodians to offer substantial returns to their investors.”

Wharton’s major successes in 2020 included:

SoPhi Logistics Center — Philadelphia, Pennsylvania

In 2019, Wharton was presented with the opportunity to invest in a run-down former subway repair facility in South Philadelphia. Despite the building’s dilapidated physical state and the inconvenient presence of rail lines inside the property, Wharton recognized the property’s immense potential if reimagined into a first-class facility that could help meet the wave of demand for last-mile fulfillment space within the urban core. While the property was passed over by many other investors, Wharton was confident in its assessment and brought in institutional equity partner Walton Street Capital to purchase the property for $16.75 million.

The next 14 months brought a flurry of activity at the 283,000-square-foot property, with a complete overhaul to the building, roof, floors and parking lots. After transforming the crumbling eyesore into a state-of-the-art, technology-equipped e-commerce facility — now branded SoPhi Logistics Center — Wharton signed Amazon to a long-term lease in June and sold the property to GLP Capital Partners for $71.4 million. As a result of the low basis at which Wharton acquired the blighted property and the efficiency of execution, the deal registered an IRR above 200%.

Florida Crossroads Logistics Center — Ocala, Florida

In July 2020, Wharton and its partners, Westport Capital and Red Rock Developments, sold Florida Crossroads Logistics Center, a 617,000-square-foot logistics hub in the Central Florida city of Ocala, to Lexington Realty Trust, a NYSE REIT, for $58.4 million. Upon completion of the property in June 2020, the facility was fully leased to Amazon, helping pave the way for its sale.

Consistent with Wharton’s philosophy of trying to see ahead of its competition, Ocala was an untested market for big box spec industrial development prior to this project. However, given its central location and proximity to 14 million consumers and an abundant labor pool, Wharton felt comfortable in taking a calculated risk and was rewarded when it delivered a logistics property to meet the needs of the largest global e-commerce company. This transaction also proved the success of this sort of spec industrial development, with an IRR north of 40%.

32-building portfolio — Pennsauken, New Jersey

In June, Wharton closed on the acquisition of a portfolio of 32 last-mile warehouse properties in Southern New Jersey, comprising approximately 1.2 million square feet of space. Sourced off-market through Wharton’s strong relationships, the portfolio was acquired at a very favorable basis — well below replacement cost — by Wharton and equity partner, Walton Street Capital. In a supply-constrained market within the country’s eighth largest MSA, this portfolio will provide a significant opportunity to create value as leases roll. 

Shugart Farms Phase II — Palmetto, Georgia

Originally purchased by Wharton, Starwood Capital and Red Rock Developments in late 2017, this 988,000-square-foot, suburban Atlanta property was developed speculatively with an eye toward landing a premier tenant upon completion. Once construction had concluded, Wharton signed PVH Corp. — the noted apparel company that sells brands Tommy Hilfiger, Calvin Klein and IZOD — to a 20-year lease for the entire building. With a long-term tenant in place, the partnership attracted the interest of Granite, a Canadian REIT, and sold the building in November for more than $80 million, culminating a successful deal that generated a gross IRR approaching 30%. 

About Wharton Industrial

Wharton Industrial, a platform company of real estate investment firm Wharton Equity Partners (formed in 1987), is a leading investor and developer of industrial real estate, with a robust pipeline of properties across the Eastern Seaboard, central and south Florida and the southeast US. Steered by the company’s forward-thinking leadership team, Wharton has been a trendsetter 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. Before shifting to building out its industrial platform, Wharton Equity Partners was an early mover in secondary-market multifamily investment, where it amassed a large portfolio of value-add apartment properties across the South and Midwest, which it ultimately sold for an IRR well more than 20%.

Wharton Industrial Signs Warehousing & Logistics to 170,000 SF Lease in Hazleton, PA

Deal adds to real estate investment firm’s success across growing industrial portfolio

HAZLETON, PA. (Feb. 22, 2021)  — Wharton Industrial announced today that Patton Warehousing & Logistics has signed a lease at a Wharton-owned facility in Hazleton, Pennsylvania.

Patton, a premier 3^rd party logistics company specializing in distribution, technology, contract packaging services, fulfillment, indoor rail, transportation and logistics, and more, will occupy a total of 170,000 square feet at the warehouse located at 69 Green Mountain Road. Headquartered in Milton, Pa., it also maintains locations in Pennsylvania, New Jersey, Ohio and Virginia.

Jeff Lockard, Ryan Barros, Larry Maister, and Jeff Williams of JLL represented Wharton in the transaction.

“Hazleton serves as a natural extension of the successful Lehigh Valley market, and the easy access it provides to multiple large metro areas makes it a prime destination for distribution and logistics users such as Patton,” said Peter C. Lewis, Chairman and Founder of Wharton Equity Industrial. “Wharton acquired this property a little more than 15 months ago after recognizing its potential as an emerging hub for these kinds of companies, and the continued growth of e-commerce has only increased demand for industrial space across the region. This agreement confirms our vision for this warehouse and similar facilities along the Eastern Seaboard, and we look forward to continuing to meet the evolving needs of users like Patton and the entire industrial sector in the years to come.”

Wharton Industrial has owned the Green Mountain Road property since October 2019, when it acquired it through a joint venture with CenterSquare Investment Management, LLC. Originally built in 1999 as a distribution center for Office Depot, the facility totals 589,580 square feet and sits on 52.6 acres.  The state-of-the-art warehouse features a side-loading format, with 82 dock doors equipped with 30,000-pound mechanical levelers; two drive-in doors; four rail doors; an ESFR sprinkler system; 75-foot speed bays; 33-foot clear heights; a 210-foot truck court; and parking for 305 cars. It is also served by rail.

With the Patton lease, there is approximately 160,000 SF remaining that is situated in the prime area within the building due to its 20 docks doors, proximity to an abundance of employee parking and a generous office and a break-out area.

The property is strategically located just four miles from the Exit 143 interchange of Interstate 81, with excellent proximity to primary distribution corridors that service the Northeast, including I-81, I-80, I-476, and I-78. It is also located within a 35-minute drive of both FedEx and UPS parcel operations.

Other tenants at the facility include PFNonwovens LLC, a leader in high-performance, sustainable, nonwoven fabrics, which occupies approximately 260,000 square feet of the property.

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%.

Wharton Industrial 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.

617,046-square-foot distribution center planned for Central Florida

Wharton Industrial Developing Florida Crossroads Logistics Center,
Scheduled to Open Fourth Quarter 2019

OCALA, Fla. – (December 5, 2018) – Florida Crossroads Logistics Center, a 617,046-square-foot spec distribution center, is planned for the Central Florida city of Ocala, in an area fronting I-75 that’s proving to be extremely popular as a statewide distribution hub.

The facility, developed by Wharton Industrial, Red Rock Developments, and Westport Capital Partners LLC, will sit on 46 acres of land. The location is key, as it allows for same-day distribution to nearly the entire state of Florida – one hour from Orlando and Tampa, two hours from Jacksonville and four hours from Miami.

The facility, which is expected to be open by the fourth quarter of 2019, is being listed for lease as a spec building by Colliers International Central Florida’s Deborah Mickler, SIOR, Executive Managing Director of Industrial Services; and David Wilson, Associate.

The logistics center will be built in an industrial corridor off I-75 and US-27 in Ocala, near the Chewy.com, AutoZone and FedEx distribution centers. The corridor sees over 58,000 vehicles per day and has 1,500 linear feet of visibility along I-75. A total of 70 percent of truck traffic in and out of Florida passes through this area, and the location would enable a distributor to do same-day delivery to over 14 million people. Central Florida’s industrial market is tight at a 4.4 percent vacancy rate with 223 million square feet of industrial space, creating opportunities for new industrial space.

“We worked closely with our partners in identifying Ocala as an important gateway to distribution throughout Florida,” says Peter C. Lewis, President of Wharton Industrial. “The area benefits from great access and plentiful, capable labor which is essential to the larger tenants we are seeking to attract,” notes Lewis.

“The City of Ocala is excited to welcome this investment in our community and we’re ready to work. There is no better place in Florida than right here in Ocala to do business, raise a family, and thrive.” Said Ocala City Council President Matt Wardell.

Florida Crossroads Logistics Center is the latest in string of other projects that Wharton Industrial is developing throughout the southeast and northeast US. Currently, the firm has over 4 million SF in development or planning. “Like we have done with the other businesses we have built under the Wharton umbrella, we expect Wharton Industrial to be a major force in the development and ownership of industrial real estate,” adds Lewis.

Wharton Industrial is a platform company of Wharton Equity Partners, a New York City-based real estate investment firm formed in 1987. The company has extensive experience acquiring, developing and operating all asset classes, including having recently purchased in excess of $500 million of multifamily properties primarily in the southeast US through its affiliate, Wharton Residential.

Wharton Residential Sells Multi-Family Property in Nashville, TN; Achieves over 50% IRR

Harvests substantial gains after a complete overhaul of the asset’s interiors and exteriors

NEW YORK, Sept. 12, 2018 /PRNewswire/ — Wharton Residential, a Wharton Equity company, announces the completion of the sale of a 210-unit multifamily property, located in Nashville (Antioch), TN. Cedar Pointe, built in 1988, was acquired by Wharton Residential from the original developer in an off-market transaction in early 2017.

Antioch is an emerging sub-market in Nashville, TN. “Cedar Pointe fit 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.

Working closely with Tampa, FL-based design firm, CID Design, Wharton Residential completely transformed Cedar Pointe into a modern and luxurious place to call home. The renovations included: replacing the siding with HardiePlank, changing out the majority of windows; upgrading 30% of the interior units; renovating the clubhouse, pool and leasing center, enhancing the dog park and playground and significantly augmenting landscaping, lighting and signage.

Acting as true visionaries, Wharton Residential added such touches as a gourmet outdoor kitchen, a custom fire pit and jet sprays in the pool area to further enhance the property.

In the short time of Wharton’s ownership, due to the property’s transformation, the value increased at an extraordinary rate. The sale of Cedar Pointe resulted in an IRR of over 50%.

“It is very rewarding to see our vision and execution be validated in such a way. However, it is always bittersweet to move on from a transaction where we made such a successful imprint. For 30+ years we have been guided by what is in the best interest of our investors, and given all the factors, a sale at this time was the prudent step,” adds Lewis.

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 $1.5 billion in transactions since inception. Wharton Equity’s industrial business, Wharton Industrial, has been particularly busy with more than 4 million square feet of warehouse/distributions facilities under development in such markets as Atlanta, Greenville and Central Florida.

Wharton Hospitality Acquires Sheraton Miami Airport Hotel

New York — Wharton Equity Partners, in partnership with Hersha Hospitality Management and a New York City private equity firm, facilitated the acquisition of the 405-room Sheraton Miami Airport Hotel. The property is the closest hotel to the Miami International Airport and has direct access to the recently opened Miami Intermodal Center, which provides direct connections to South Beach, Brickell and other regional leisure and business destinations. The hotel has 17,000 square feet of meeting and event space, and guests also have access to a 1,800 square foot fitness facility and several food and beverage outlets. The partnership plans on carrying out a full upgrade of the guest rooms and public facilities in coordination with Starwood Hotels.

Wharton Hospitality, a family company of Wharton Equity Partners, is focused on the acquisition and repositioning of full service hotels in top 50 MSA’s, as well as limited service hotels in high barrier-to-entry markets. 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.

Amazon Same-Day Delivery is Massive Opportunity for Industrial Investors, according to Wharton Equity’s Peter C. Lewis

JERSEY CITY, NJ — Peter C. Lewis, Chairman and President of Wharton Equity Partners kicked off CAPRE’s Industrial Real Estate Revolution with some broad, yet critical, remarks. “Morning Inspiration with Peter C. Lewis: Finding Equity and Structuring Deals with Institutions and High Net Worth Investors in Today’s White Hot Industrial Arena” was a boisterous session that touched on everything from big picture strategy to the day-to-day nitty gritty – with a key connecting force: the future of the industrial space, which is likely going to arrive sooner than anyone ever thought.

Lewis began by situating this topic within the changing offerings of Amazon, specifically their recent shift to same-day delivery. “We’re at the dawn of a change that is going to affect us for decades to come,” he shared. “And industrial is just beginning to change. This is the top of the first inning. The things that are about to change in this business are things that no other asset class has ever seen before.”

Less than 1% of sales are same-day now, but experts predict that will creep up to 20% quickly, shared Lewis. “How is this possible?” he asked the room, full of investors, brokers, and property managers enjoying their coffee. “You’ve got to be right next to the population. The whole movement is about getting as close as you can to the population so that you can get to peoples’ doors as quickly as possible.”

However, Lewis then offered a perplexing disclaimer about the state of the industry – industrial supply is actually decreasing, because other asset classes offer higher margins for those looking to sell land and product. “What makes this fascinating is that the supply of assets around the cities are becoming smaller and smaller,” he explained. “That presents opportunities and challenges.”

“I’ve never seen an asset class go through as much change as industrial is about to, because of e-commerce and technology. It’s a game-changer,” he beamed, before making a prediction. “We’re going to start to see micro-distribution. You’re going to have to have places in the city – we’re looking at places in the city like garages, and dark retail. It can’t be on the 18^th floor of an office building. It’ll have to be in the basement, so that you can get goods to people, especially if it takes an hour to get over the bridge!”

Lewis then explained some nuances of structuring deals in the space – for example, industrial assets have often been misunderstood, and usually offer more value than meets the eye. Furthermore, institutional investors require a lot of time to make a decision, because of so many stakeholders. “So, you have to start socializing before you need the money. Seek out the institutions, and chat with them about what they’re doing. Talk to them about deals you’ve done and what you’re looking at. Don’t wait until you need the money to go to them – it’s too late.”

“Don’t forget that they’re very focused on expertise in markets — they want to grow,” he advised, offering another key piece of insight from his experience. “They’ll do a $7 Million USD deal, so long as they feel you can do more. So, you have to have ideas for how to scale – together. “ Lewis then shared that most sponsors put up about 10% of equity funding — on average. “That’s something to think about as you approach these institutions.”

Next up was a comparison of development deals vs value-add projects. “With development deals, you’ll probably see higher prefs, but as you get deeper into the waterfall, more juice back ends,” offered Lewis. “On the income deals, you’ll see a little lower prefs. Maybe you’ll get away with an 8, more likely a 9. The question is then, where do the waterfalls go from there? But believe, you can negotiate with these firms.” However, at that point, Lewis decided to offer a key piece of advice for anyone seeking to seal a deal.

“Early on, if you’re looking for money, quickly get to the bottom line,” he urged. “Say, Tell me what you guys are going to give us on structure. Don’t wait until you get the deposit, to say, wait, you want 15 pref? It’s too late at that point, and they know that. This is why I like to say you should socialize early — so that you know what they want. And funnily enough, once you start doing deals with institutions, they all start to worry that you’re going back to their other competitors. You can use this to your advantage. They need to know that there’s a credible threat of you going somewhere else — in a respectful way, of course.”

Before wrapping up his remarks and seeking questions from attendees, Lewis explicitly shared the moral of his presentation. “We’re in a great spot right now. It’s a unique point in history for this business. However, you have to be really, really focused to try to find properties, because it’s very hard. And you want to start thinking about where your equity is — and early,” he summarized. “And lenders, by the way, are important too. The smaller the asset, the more likely it is that you’re going to be dealing with local banks. You’re going to need to think about those relationships as well. Is there recourse, or is there not going to be recourse? We stay away from recourse as much as possible, but some banks can’t do that. So, you want to be thinking about your capital stacks early on.”

“My feeling is that anywhere along the east coast, where there’s a population, rents are early in their move up,” he then surmised, offering a key take-away for the room. “There could be a point where it slows down a bit, but I think that in the next couple of years, the concept of single-digit rents will be completely obsolete. And I think at some point we’ll see rents crossing over into the territory where office rents are.”