Bank loan

Webster Bank provides $22 million acquisition loan for purchase of Philly Industrial

Velocity Ventures Partners secured $21.9 million in acquisition financing to buy an industrial asset in Philadelphia, Commercial Observer has learned.

Webster Bank provided the three-year variable rate bridge loan for Velocity’s $22.3 million acquisition of a 471,0000 square foot logistics property in 5660 Avenue du Soleil Levant from Cardone Industries. In addition to funding the acquisition, the balance sheet loan will also fund planned capital improvements.

Walker and Dunlop arranged the transaction with a team led by Michael Stepniewski, Jonathan Schwartz and Michael Ianno.

Stepniewski noted that Walker & Dunlop Investment Partners (WDI), a Denver-based subsidiary of W&D, is providing capital to Velocity as part of a joint venture on the acquisition agreement, making it an ideal setup to involve the brokerage in financing.

“It was kind of a group effort and a real collaboration between two internal Walker & Dunlop groups to help get New York out of debt and then have the WDI guys in Denver provide the bulk of the share capital in a JV partnership with Velocity. “, said Stepniewski.

“WDI has done a tremendous amount of work in the industrial arena, and it’s a group that Willy Walker is very focused on growth.

Cardone, an auto parts manufacturing company, is the sole tenant of the property. Velocity’s acquisition adds to its portfolio of more than 6 million square feet of industrial assets across Pennsylvania and New Jersey.

Officials at Webster Bank and Velocity did not immediately return requests for comment.

-Andrew Coen can be reached at [email protected].