JLL Capital Markets arranged $8.75 million in acquisition financing for a three-property portfolio comprising 128,561 square feet of light industrial space in Camden and Burlington County Industrial submarkets.
JLL worked on behalf of the borrower, Wharton Industrial, a platform of Wharton Equity Partners, to place the five-year acquisition loan with Metropolitan Commercial Bank.
The 96%-leased portfolio comprises the industrial warehouse facilities at 65-67 Old Kings Highway and 77 Old Kings Highway in Maple Shade and an industrial flex building at 2091 Springdale Road in Cherry Hill.
2091 Springdale is 93% leased to a mix of tenants including Fiserv. The Maple Shade properties, which are adjacent to each other, are fully leased to Habitat for Humanity and a diversified group of tenants. Originally constructed in 1975 and 1980 and upgraded throughout the years, the portfolio buildings feature clear heights ranging from 18 to 22 feet, 26 loading docks, two drive-in doors and ample parking.
Just off Interstate 295 and the New Jersey Turnpike, the portfolio has easy access to the entire Philadelphia metro area along with the residents in New Jersey, Maryland and New York. The properties are located within two of the best-performing industrial markets in southern New Jersey due to their extensive highway network and access to over 20 million people within a two-hour drive.
JLL Research shows vacancy rates for the Camden and Burlington County Industrial submarkets at 1.2% and 0.4%, respectively, which is lower than the New Jersey Industrial market average of 1.7%.
“Our previous experience investing in assets across southern New Jersey and outside of Philadelphia has afforded us many opportunities to capitalize on the large metropolitan populations close to this area, and has also generated considerable returns for our investors,” said Peter Lewis, founder and chairman of Wharton Industrial. “This region is still a burgeoning hub of last-mile and next-day delivery fulfillment activity, and we look forward to continuing our strategy of acquiring and redeveloping prime industrial developments to attract both e-commerce users and potential buyers.”
The JLL Capital Markets Debt Placement team representing the borrower was led by Senior Managing Directors Michael Klein, Steven Klein, Director Michael Pagniucci and associate Ryan Carroll.
“JLL is pleased to have secured acquisition financing for these value-add properties as Wharton aggressively builds on its strategy to assemble a portfolio of warehouse/distribution and industrial flex buildings in core locations throughout New Jersey, Pennsylvania and New York,” Klein said.