15 and 35 East Uwchlan Ave. in Exton, Pennsylvania — Courtesy: Wharton Industrial
By Joshua Burd
Wharton Industrial has added to its holdings in the region, acquiring more than 91,000 square feet of small-bay industrial space in Pennsylvania under a newly announced joint venture.
The firm, an affiliate of Wharton Equity Partners, teamed with Tramview Capital Management in the off-market deal in the Exton section of West Whiteland Township and roughly 35 miles west of New Jersey. The firms are now planning a series of cosmetic upgrades at the buildings, 15 and 35 East Uwchlan Ave., which are 96 percent leased to 23 tenants, capitalizing on their highway access and location in a densely populated area.
Avison Young’s Adam Gillespie and Ben Fabiszewski brokered the sale, terms of which were not disclosed, while JLL’s Michael Klein, Steven Klein and Ryan Carroll arranged financing. Wharton has tapped Kevin Flynn Jr. and Andy Pancoast of The Flynn Co. to handle leasing.
“Small-bay, multitenant industrial has been one of our highest-conviction investment strategies,” said Nick Aileo, director of acquisitions for Wharton Industrial, who led the transaction. “These types of properties are difficult to replicate today due to demising and office fit-out costs along with scarcity of land. It is just too expensive in most cases for new development to replicate buildings with this number of suites.”
According to a news release, the 91,380-square-foot portfolio is just off Route 100 and minutes from Exit 312 of the Pennsylvania Turnpike, featuring 18- to 20-foot clear ceiling heights and a functional shared truck court configuration. Many of its service industrial, distribution and commercial tenants have been at the property for more than a decade, benefiting from facilities whose suite sizes average roughly 3,655 square feet.
Wharton added that small-bay properties have experienced the strongest leasing velocity and lowest vacancy regionally. It will now leverage that demand with updates such as a new exterior paint scheme, new signage and wayfinding and refreshed landscaping.
The Exton deal is Wharton Industrial’s latest in greater Philadelphia and southern New Jersey in the past 12 months, which have added to a portfolio that now comprises 17 buildings and more than 1.2 million square feet, the news release said. Recent transactions include the purchase of the 84,000-square-foot 250 Canal Road in Fairless Hills, Pennsylvania, which it’s currently renovating from a food processing facility to a distribution warehouse, as well as 51,348 square feet at 1296 Adams Road in Bensalem and the 42,571 square feet at 1930 Olney Ave. in Cherry Hill that it’s converting from a call center to warehouse.
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