Webster Bank Provides $22M Acquisition Loan for Philly Industrial Buy – Commercial Observer
Velocity Ventures Partners has nabbed $21.9 million of acquisition financing to purchase an industrial asset in Philadelphia, Commercial Observer has learned.
Webster Bank supplied the three-year floating-rate bridge loan for Velocity’s $22.3 million acquisition of a 471,0000-square-foot logistics property at 5660 Rising Sun Avenue from Cardone Industries. In addition to funding the acquisition, the balance sheet loan will also finance planned capital improvements.
Walker & Dunlop arranged the transaction with a team led by Michael Stepniewski, Jonathan Schwartz and Michael Ianno.
Stepniewski noted that Walker & Dunlop Investment Partners (WDIP), a Denver-based subsidiary of W&D, is providing preferred equity to Velocity on the acquisition deal, making for an ideal setup to get the brokerage involved with the financing.
“It was kind of a group effort and a real collaboration between two internal groups of Walker & Dunlop to facilitate the debt out of New York and then having the WDIP guys out of Denver providing the bulk of the equity capital with Velocity,” Stepniewski said.
“WDI has done a tremendous amount of work in the industrial space, and it’s a group that Willy Walker is very focused on growing.”
Cardone, an auto parts manufacturing company, is the sole tenant of the property. Velocity’s acquisition adds to its over 6 million square foot portfolio of industrial assets throughout Pennsylvania and New Jersey.
Officials for Webster Bank and Velocity did not immediately return requests for comment.
-Andrew Coen can be reached at email@example.com.