$21.98M arranged in financing for Wharton Industrial’s acquisition of 6-property South Jersey portfolio

JLL Capital Markets said Wednesday it secured $21.98 million in acquisition financing for a six-property portfolio that includes 251,922 square feet of light industrial space with properties in the Philadelphia-area communities of Pennsauken, Moorestown and Marlton, as well as Boothwyn and Reading, Pennsylvania.

JLL worked on behalf of the borrower, Wharton Industrial, a platform of Wharton Equity Partners, to secure a four-year, floating-rate, non-recourse acquisition loan through Ready Capital.

The portfolio is anchored by Syscom Tech, one of America’s leading electronic contract manufacturers, and Flowserve Corp., one of the largest suppliers of industrial and environmental machinery. The vintage of the properties ranges between 1987 and 2005, and the portfolio features 18- to 22-foot clear ceiling heights with 46 loading docks and 13 drive-in doors. Additionally, the portfolio offers individual units ranging from 21,500 to 75,725 square feet.

The properties are located at 9256-60 Commerce Highway in Pennsauken; 1537 Glen Ave. in Moorestown; 5 E. Stow Road in Marlton; 18 and 19 Creek Parkway in Boothwyn; and 71 Vanguard Drive in Reading. All six property locations offer convenient highway accessibility.

The JLL Capital Markets Debt Placement team representing the borrower was led by Senior Managing Directors Steven Klein and Michael Klein and associate Ryan Carroll.

“JLL is pleased to have sourced acquisition financing for this light industrial portfolio and to continue its relationship with Wharton Equity Partners,” Steven Klein said.

“Ready Capital provided a flexible structure that accommodated the purchase of six individual properties from five separate sellers at a leverage and rate that helped maximize the borrower’s returns,” Michael Klein added.

“We were eager to partner with both Ready Capital and JLL to acquire these prime industrial assets within the Philadelphia metro area. We have a history of investing in this region, with its close proximity to a large population hub and ideal access to major arteries for (third-party logistics) and distribution providers, and we are confident that this strategic acquisition that will yield significant (internal rate of return) for our investors,” said Peter Lewis, founder and chairman of Wharton Equity Partners.