Wharton Equity Partners

Peter C. Lewis

CHAIRMAN & PRESIDENT

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Mr. Lewis is Chairman, President and Founder of Wharton Equity. Since its inception in 1987, he has overseen the expansion of the firm’s investment reach across different asset classes and strategies. As Chairman of the Real Estate Investment Committee, Mr. Lewis drives the direction of the firm as it executes its disciplined strategy of recognizing and capitalizing on emerging trends.

Among other initiative over the course of his leadership of Wharton Equity, Mr. Lewis established the firm’s industrial, multifamily, self-storage, homebuilding, hospitality and venture capital platforms resulting in $2.5 billion of transactions.

Mr. Lewis has had a diverse career having been employed in investment banking, commercial banking and tax accounting prior to forming Wharton Equity.  Besides his real estate activities, he is an active venture capital and private equity investor.  Mr. Lewis received his Bachelor of Science degree in Economics from the Wharton School at the University of Pennsylvania and his Master in Business Administration from the Graduate School of Business at Columbia University. He is a frequent guest lecturer in real estate, and is involved in a number of philanthropic endeavors.

Mixed Use Development in Miami Beach

Wharton Urban purchased a prime 1.8-acre site in the town of Bay Harbor Islands, a submarket of Miami, Florida, for the development of a significant mixed-use project that will contain office, retail and residential components. The property was acquired off-market from a family that owned the site for over 20 years. After an extensive process, world-renowned architectural firm, Arquitectonica, was chosen to design the project. Wharton Urban is partnering with Northwood Ravin, a major real estate private equity firm, on the development.

Downtown Miami Mixed Use Development Site

Wharton Urban acquired a note from a large bank secured by a 2.2 acre parcel of land in downtown Miami. The site is zoned for a 2 million square foot mixed use development project, and has plans previously developed by internationally-acclaimed architect, I.M, Pei. Wharton Urban’s partner on the transaction is a leading global hedge fund. The note was acquired “all cash” with 100% equity, and the closing occurred in under 30 days. Approximately four months after the acquisition of the note (two years ahead of schedule), Wharton Urban negotiated a deed-in-lieu-of-foreclosure and acquired unencumbered; fee simple interest to the property.

Miami Midtown / Design District Development

Wharton Urban, in partnership with the Mack Real Estate Group, completed the development of an approximately 500,000 square foot, 18-story mixed-use development project at the nexus of Midtown, Wynwood and the Design District in Miami. The property contains 194 residential units, with such amenities as dog-walking areas, deck-top pool, health club facility, and social lounges. In addition, there is over 65,000 square feet of retail space at the base of the building. Consistent with all Wharton Urban projects, the property has a distinctive design which was formulated in conjunction with the property’s architect, Stantec.

Development of Boutique High-Street Retail Property

Wharton Urban played an integral role in developing an approximately 20,000 square foot “high-street” retail property located in Miami’s Design District. The building, designed by award-winning Touzet Studios, has 30-foot high glass storefronts, with a second floor that “floats” above Interstate 195. Wharton Urban secured the key tenant for the building, Sub Zero Wolf, which chose the property for its southeast showroom and has leased the entire second floor where it will be installing elaborate demonstration kitchens in its space, as well as the rooftop. Neighbors of the property include such super luxury brands as Prada, Gucci, Louis Vuitton, Channel and Hermes. Located at the gateway to the Design District on NE 2nd Avenue, the building serves as a distinctive anchor to what is quickly emerging as one of the world’s great shopping destinations.

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The Sheraton Miami Airport Hotel, Miami, Florida

Wharton Hospitality, 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 completed a full upgrade of the guest rooms and public facilities in coordination with Starwood Hotels (now Marriott).

The Hilton Lexington Downtown, Lexington, Kentucky

Wharton Hospitality, in partnership with an institutional capital partner, engineered the purchase from The Blackstone Group of an approximately 600,000 square foot mixed use project located in Lexington, KY. The complex, on a prime downtown corner adjacent to the Lexington Convention Center, consists of a 365-room, full service hotel and a 250,000 square foot office building. Wharton Equity negotiated the re-flagging of the hotel from a Radisson to a Hilton, and implemented a $15 million property renovation, including a complete renovation of all hotel guestrooms and public spaces. A new 40-foot high mosaic fountain with a horse theme is the centerpiece of the lobby, which was designed by Wharton Hospitality in conjunction with Mixed-up Mosaics based in Soho, New York. Debt financing for the approximately $50 million transaction was provided by an affiliate of Legg Mason.

Select Service Hotels

Wharton Hospitality and an investment partner acquired a 122-room Holiday Inn Express in Montrose, CO from a local lender who gained control of the asset under distress. Wharton Hospitality repositioned the asset through a major renovation and a renewed franchise agreement. In addition, management was changed to Interstate Hotels who embarked on a significant marketing program which increased REVPAR dramatically.

Nashville MSA (Deep Value-Add)

Wharton Residential acquired a 1980’s vintage, 210-unit value-add property located in Antioch, Tennessee, minutes from downtown Nashville. Acquired off-market from the original developer, the exterior, common areas and the majority of apartments were in their original condition. Wharton Residential’s plans call for an extensive overhaul of the property, including replacing siding with HardiPlank, installing a new gourmet outdoor grilling station, a fire-pit, new pool deck, new signage, enhanced landscaping and a gut renovation to the clubhouse. This is in addition to upgrading most of the apartments with vinyl plank flooring, new cabinets and counter tops and enhanced lighting.

“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 Residential.

Following the renovations, Wharton Residential subsequently sold the property and achieved an IRR of over 50%.

Acquisition and Repositioning of $250 Million Portfolio

In conjunction with a large institutional partner and BH Equities, Wharton Residential acquired a $250 million portfolio of 18 properties. The assets, comprised of over 4,100 units, are being repositioned through a $17 million capital improvement program focused on interior and exterior renovations. Wharton Residential sourced the transaction on an off-market basis, negotiated terms with the seller and coordinated the relevant parties to achieve an expedited closing in 60 days. The properties are located in such high-growth markets as Charlotte, NC, Columbia, SC, Savannah, GA, and Midland/Odessa, TX.

Upon substantial completion of the repositioning of the portfolio, the properties were sold, yielding a gross IRR of 24% and a 1.6x multiple on invested capital.

Two Addison Place, Pooler, GA (sub-market of Savannah)

Wharton Residential acquired a brand new, 326-unit Class A property located in Pooler, Georgia, a highly-desirable sub-market of Savannah, which was in the final stages of lease-up. When the company went into contract, the asset was under 60% occupied and was 80% leased upon closing, evidencing strong demand for Two Addison Place.  “Continuing our strategy of purchasing great multifamily properties in growing markets, Two Addison Place is a prized acquisition that we will be proud of owning for years to come,” states Peter C. Lewis, President of Wharton Residential.

Inspired by the architecture of Addison Mizner, architect of The Cloister Hotel in Sea Island, GA and many of Florida’s most luxurious landmarks, the property has red tile barrel roofs, wrought iron balcony railings and stucco siding. Although in first-class condition, Wharton Residential will be enhancing the asset from adding a fire pit and a second gracious fountain, to supplementing landscaping, signage and lighting.

The Preserve at Somers, Somers (Westchester), New York

The Preserve at Somers is a 300-acre, $115 million residential community consisting of 188 single-family homes situated on one-half acre lots. Homes in the development were sold out in approximately three years, with price increases moving average starting prices from $400,000 to almost $900,000. Wharton Equity was intimately involved in structuring the acquisition and financing of the property; securing all approvals for the site; overseeing all aspects of construction (homes and infrastructure), and marketing.

Montville Chase, Montville, NJ

Montville Chase is a 317-unit, $42 million residential development project of townhouses and condominiums. The community offers its residents such amenities as a jogging track, clubhouse, pool, tennis courts and children’s play area. Off-tract improvements included the widening and renovation of a nearby bridge, and installation of a one-mile sewer main.

Land: South Carolina Mixed Use Development Site

Wharton Residential contracted to acquire a 2.7 million buildable square foot, 304 acre mixed use property located in Myrtle Beach, South Carolina, adjacent to the Myrtle Beach International Airport. The project was approved for approximately 1.2 million square feet of residential development and 1.5 million square feet of commercial development. The property was sold by Wharton Residential for $50 million to an affiliate of Fortress Investment Group prior to development.

1.5 Million SF, $240 Million Warehouse Development, Mesa, AZ

Wharton Industrial has begun construction on a $225 million, 100-acre site in Mesa, AZ where it is developing an 11-building, 1.5 million-square foot Class A industrial park known as “The Hub@202.” The buildings will range in size from 65,000 square feet to 270,000 square feet and will feature 28- to 32-foot clear heights; 73 trailer parking spaces; 60-foot speed bays; and 1,429 car parking spaces.

The site is among the last large contiguous land parcels remaining in the area and is centrally located in the highly desirable Southeast Valley submarket of Metropolitan Phoenix — one of the fastest growing industrial markets in the country and poised to lead the nation in industrial rent growth over the next five years.

The project is part of Wharton Industrial’s strategy of making strong conviction investments in markets the company believes are on the cusp of significant growth stemming from the impact of technological change. Mesa squarely fits this profile as it is emerging as the “digital desert” with companies like Microsoft, Google, Apple and Amazon having a strong presence. Moreover, the area is home to other “new age” companies involved in chip manufacturing (Intel and Taiwan Semiconductor), aerospace (Boeing, Lockheed, Gulfstream, Virgin Galactic) and electric vehicles (Lucid).

The HUB@202 is being positioned to cater to firms seeking a presence in the East Valley which are attracted to the strong, skilled labor market in the area and the ease of access to the greater Phoenix area, as well as California and Nevada.

The lead lender on the project is MSD Capital, an affiliate of the family office of Michael Dell.

1.3 Million SF Portfolio of 34 Last Mile Warehouses, Pennsauken, New Jersey

Wharton Industrial acquired 34 warehouses in Pennsauken, New Jersey from the original developer of the properties in an off-market transaction. The assets are located 15 minutes from Center City Philadelphia and increase the company’s footprint in the market. Given their access to nearly 6 million people in the metro area, the assets serve as a key last mile distribution point for the portfolio’s regional and national tenants such as Nestle, PepsiCo and Sprint.

The properties, known as Twinbridge Industrial Park are in proximity of each other and represent over 30% of the inventory of investor-owned industrial in Pennsauken. Wharton Industrial has completed upgrading the common areas of the property with enhanced landscaping, signage, lighting and to create a new web portal to enhance tenant relations (e.g., service calls, leasing matters). In addition, the firm has undertaken a comprehensive replacement of many of the roofs in the park.

The properties will benefit significantly from the further emergence of Philadelphia as a major hub for distribution on the east coast. Additionally, there has been an increasing migration of tenants from the New York metro area and northern New Jersey to south New Jersey/Philadelphia seeking greater affordability. These factors coupled with the scarcity of available inventory and land for development, portend a continued rise in rents.

Wharton Industrial is partnering with Walton Street Capital on this project and received debt financing from Nuveen.

283,000 SF Last Mile Warehouse, Philadelphia, Pennsylvania

Wharton Industrial acquired a 283,000 SF warehouse in Philadelphia, PA and immediately commenced a major renovation program to convert the former subway repair facility into a top-tier last mile warehouse.  The improvements included removing rail beds inside the facility, replacing the entire roof, leveling interior floors, installing LED lighting, upgrading loading docks, and repaving the parking areas. Wharton Industrial also branded the property, “SoPhi Logistics Center.” Nine months after acquisition, Wharton Industrial was able to secure a 10-year lease with Amazon for the entire building. The company is utilizing the property as a “mission critical” facility for its same-day delivery service.

The Property is strategically located for e-commerce distribution / fulfillment as it is within one hour of 6 million people and one day’s drive of half the US population. In addition, the SoPhi Logistics Center sits at the nexus of I-95, I-76, Center City, the port of Philadelphia, and the Philadelphia International Airport. Wharton Industrial is actively seeking last mile warehouses and believes this asset is representative of the unique opportunities in transforming older industrial assets into modern facilities geared towards the needs of today’s users.

After completing the renovation program and leasing the facility, Wharton Industrial sold the property and achieved a 208% gross IRR on the transaction.

Wharton Industrial partnered with Walton Street Capital on this project.

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1 Million SF Warehouse Development, Atlanta, Georgia

Wharton Industrial signed a 20-year lease for its nearly 1 million square foot development project in Atlanta, GA with PVH Corp., the company behind clothing brands including Calvin Klein and Tommy Hilfiger. The recently finished building, which sits on over 80 acres and was leased prior to completion, was developed by Wharton Industrial, Red Rock Developments and an affiliate of Starwood Capital Group.

Located immediately south of downtown Atlanta, the property is strategically situated in proximity of key modes of transportation including the CSX rail intermodal, the Hartsfield Jackson International Airport, and interstate highways I-85 and I-75. Neighbors of the project include Duracell, Clorox, Smuckers, and Google.

Shortly after completion the property was sold to a REIT, yielding a gross IRR of nearly 30% and a 2x on invested capital.

617,000 SF Warehouse Development, Ocala, Florida

Foreseeing the strategic importance of Ocala, FL with respect to its location and proximity to labor, Wharton Industrial acquired a 46-acre parcel of land in the market and developed a 617,000 SF state-of- the-art warehouse / distribution facility. Prior to the completion of the project, the firm signed a 10-year lease with Amazon for the entire building.

Ocala is the Northern Apex of the Central Florida distribution market on the I-75 corridor, where the project is located. 70% of Florida truck traffic goes through this corridor. The area also benefits from an abundant and qualified labor force, with approximately 600,000 people within a one-hour drive of the property. Neighbors of the project include Chewy.com, AutoZone, and FedEx. Wharton Industrial partnered with Red Rock Developments, and Westport Capital Partners on the project.

Upon completion, the property was sold to a REIT, yielding a gross IRR of 58% and 1.7x on invested capital.

580,000 SF Warehouse Acquisition, Hazleton, PA

Wharton Industrial purchased the former Office Depot distribution center and negotiated a sale/leaseback for 40% of the building. Upon the acquisition, the firm undertook a capital improvement program which included installing a demising wall to bifurcate the space, repaving the parking area, which included adding a stretch of road to complete a loop around the building, and installing LED lights.

Located in the Humboldt Industrial Park, the property benefits from easy access to Interstates 80, 81 and 76 and a strong labor pool.  Further, the building’s 32+ foot clear ceiling heights and ample parking provides unique attributes in the NE PA market which is accessible to over 30% of the US population within one-day’s drive.

Wharton Industrial partnered with CenterSquare Capital Management on the transaction. Upon stabilization, the property was sold to a REIT, yielding a gross IRR of 33% and 1.7x on invested capital

New York City Art Storage Warehouses

In two separate transactions, Wharton Industrial, in conjunction with an institutional partner, orchestrated the acquisition of two warehouse properties that primarily cater to the fine art and antiques industries. The purchases resulted in Wharton Industrial having a virtual monopoly on the art storage market in midtown Manhattan.  A comprehensive renovation program for both properties was undertaken. Debt financing for both acquisitions was provided by Prudential Mortgage Company. Total capitalization of the two transactions exceeded $80 million.

New York Metropolitan Area Self Storage Portfolio

An affiliate of Wharton Industrial, Wharton Storage, in partnership with an institutional investor, acquired a portfolio of approximately 6,500 self-storage units from an affiliate of GE. Located in the New York metropolitan area, the facilities required extensive renovations and were repositioned as “The Storage Company” with a new logo and brand identity. The transaction was financed with an acquisition loan from UBS Real Estate Investments, Inc. and equity was provided by a major institutional investor. After successfully repositioning the assets, Wharton Industrial sold the portfolio to an affiliate of Northwestern Mutual Life for approximately $56 million.

Aggregation of Self-Storage Properties in the Hamptons, New York

An affiliate of Wharton Industrial, Wharton Storage, assembled a portfolio of over 2,200 self-storage units from different sellers across three properties located in the Hamptons, New York. While in control of over 80% of the self-storage units in a high barrier-to- entry market, Wharton Industrial, who managed the properties and handled the integration of the assets, significantly raised rents and re-branded the facilities. The portfolio was ultimately sold to a NYSE REIT.