Paul Schwedelson Reporter Philadelphia Business Journal
Fast-growing Velocity Venture Partners has purchased the 468,000-square-foot Yeadon Industrial Center in Delaware County for $41.75 million.
Velocity plans to spend an additional $8 million on capital improvements to upgrade the complex and raise rents to market rates, co-founder Zach Moore said.
“It’s not very often we get the opportunity to buy a building of that size,” Moore said. “When we do, we get excited by it.”
The Bala Cynwyd company already owns more than 8 million square feet of industrial and flex space across 80 buildings in New Jersey and Pennsylvania. The company specializes in buying industrial properties, renovating them and elevating their value. The Delaware County building is the fifth acquisition for the company since late August, in a buying spree that also includes properties in Montgomery and Bucks counties. The deals total $93.5 million.
The complex at 6250 Baltimore Ave. in Yeadon offers a prime location near I-95, 100 yards from the Philadelphia line and six miles from Center City.
“Delaware County as a whole is one of the highest-performing institutionalized industrial markets in our geography over the past several years,” Moore said.
The complex was built in 1955 and a family owned it for the past 20 years, Moore said. Property records list the seller as Commonwealth Real Estate Investment Co.
Yeadon Industrial Center is 82% occupied by 17 tenants, a mix of distribution companies, manufacturers and service companies. Moore said Velocity intends to offer renewals to all the tenants there on a long-term basis with higher rents. Though he hopes all tenants stay, Moore anticipates somewhere between 50% and 100% will choose to renew.
Currently, there’s about 100,000 square feet of available space and that could change based on new tenants moving in or existing tenants leaving. Velocity plans to offer a variety of space size, whether it’s 5,000 square feet or 100,000 square feet.
“It doesn’t matter what your requirement is from a size perspective,” Moore said. “Come take a tour and we’ll be able to find something for you whether you’re big or small.”
Since there was “significant deferred maintenance,” Moore said Velocity is planning a new roof, parking lot and exterior facade as well as upgrading building utilities and painting existing units. The building has more than 120 dock doors and ceilings up to 26 feet.
New industrial buildings in Delaware County are rare because the area has been built out, Moore said. Once the renovations are complete, he believes they’ll be able to increase income by raising rent to market rate. Moore said it’ll be among the top Class B industrial buildings in Delaware County.
With nearly half a million square feet, Moore said it’s the largest industrial building in Delaware County, which he called “extremely valuable long term.”
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