Venture Velocity Sells Vintage Property for $59M
The latest and greatest Class A industrial properties command the spotlight these days, but once in a while a deal stands out for bucking that stereotype.
An affiliate of Velocity Venture Partners, Bala Cynwyd, Pa., has sold a 450,000-square-foot industrial building in Yeadon, Pa., near Philadelphia, for $59 million. Newmark arranged both the sale to an undisclosed buyer and the acquisition financing.
The Class C property at 6250 Baltimore Ave., known as Yeadon Industrial Center, was completed in 1955, according to CommercialEdge data. Nonetheless, the recently renovated property is 96 percent occupied, Newmark reported. A recent addition to the tenant roster, CommercialEdge indicates, was Peak Supply Chain Solutions, for about 80,000 square feet.
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6250 Baltimore Ave. is a small-bay infill industrial property in Delaware County, which Newmark reported is an in-demand Philadelphia submarket with high barriers to entry and close proximity to Philadelphia and southern New Jersey.
The property has a 24-foot clear ceiling height, more than 80 loading docks, and a truck court depth of 125 feet with secure outdoor storage space and trailer parking on the 26.6-acre site.
Newmark Managing Director Ryan Guittare led the sales team’s efforts, and Executive Managing Director Jim Badolato and Associate Adam Rudman, of Newmark’s Philadelphia-based Debt & Structured Finance group, secured acquisition financing on behalf of the buyer. Newmark Analyst John Cook provided support on the transaction.
Velocity focuses strictly on owning, acquiring and developing industrial properties, as well as conversions to industrial uses. The company currently owns and manages more than 8 million square feet of industrial space in the Greater Northeast.
Balancing out
The Greater Philadelphia industrial space market has seen a substantial recent decline in deliveries, to less than half of the quarterly average over the past two years, according to a Newmark report. Fortunately, this has coincided with a lull in demand, while sublease availability has begun to decrease, after rising for six straight quarters.
According to Newmark Research, the industrial vacancy in Delaware County is just 5.6 percent, a good bit lower than the Greater Philadelphia average of 7.6 percent.
In July, DH Property Holdings LLC, of New York, received a $53.8 million construction loan for its PhilaPort Logistics Center from ACORE Capital, in a deal arranged by Walker & Dunlop. The 282,250-square-foot last-mile warehouse and distribution center is under construction on a 15-acre site at 3060 S. 61st St. in Philadelphia. The project is scheduled to deliver in the third quarter of 2025.
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