Wharton Industrial Sells 283,500 SF Last-Mile Warehouse in Philadelphia, PA for $71.5 Million

Complete Asset Repositioning Results in Realization of Gross IRR of 208%

Wharton Industrial, along with Walton Street Capital Partners, has sold the Sophi Logistics Center, a 283,500-square-foot property in Philadelphia that was once occupied by Hyundai Rotem, a South Korean company that used the facility to repair subway cars for SEPTA.

The sale is the culmination of a major capital improvement program undertaken by Wharton Industrial that included removing rail lines, leveling floors and filling in maintenance pits inside the building. As well as removing and installing a new roof, upgrading sprinklers to ESFR and lights to LED. On the exterior, the large asphalt surface was completely milled, repaved and striped, the building was repainted and clearstory windows replaced. In addition, existing dock doors were upgraded and new ones added.

Prior to completion of the improvements, Wharton Industrial leased the property to a major e-commerce retailer for 10 years at a record-setting rent for a Philadelphia industrial property.

“We are very pleased with the outcome of this transaction,” notes Peter C. Lewis, president of Wharton Industrial. “What is perhaps most gratifying is that we took a chance with this asset as it had lain dormant for quite a while and was in significant disrepair. However, we always believed that, if properly improved, the property would have appeal as a last mile facility given its great location and that is exactly what attracted our tenant” he adds.

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.

Wharton Industrial Sells 283,500 SF Last-Mile Warehouse in Philadelphia, PA for $71.5 Million