DH Property Holdings has received a $175 million financing package for 5000 Richmond St., a 750,000-square-foot last-mile distribution development in Philadelphia. The capital stack includes $40 million in partner equity and a $135 million construction loan from Massachusetts Mutual Life Insurance Co., public records show. Walker & Dunlop arranged both components of the funding.
DHPH broke ground on the two-building project in May and completion is scheduled for the fourth quarter of 2024.
Building A will total 348,210 square feet and Building B will total 411,000 square feet. Both will feature 40-foot clear heights, and between them they will offer 112 loading-dock doors, 206 trailer parking stalls and 759 car parking stalls. CBRE Senior Vice President Andrew Green and Vice Chairman Thomas Monahan will supervise leasing at the property.
The project is just 6 miles from Center City and less than 1 mile from Interstate 95, while also providing access to interstates 276 and 476, and thereby to New York City and Washington, D.C. The 51-acre site is in a Qualified Opportunity Zone and benefits from a long-term tax abatement from the City of Philadelphia.
Walker & Dunlop’s Aaron Appel, Jonathan Schwartz, Adam Schwartz, Keith Kurland, Mo Beler, Michael Diaz, and Michael Ianno were exclusive advisors to DHPH and an undisclosed life insurance company.
Since early 2020, metro Philly’s industrial space market has hit record highs for absorption, new construction and asking rents, according to a first-quarter report from Newmark. Overall vacancy was just 4.3 percent, and availability remained low, especially in desirable submarkets, Newmark reported.
DHPH and Walker & Dunlop teamed up last September as well, when the latter arranged the $76.8 million refinancing of a recently completed 282,737-square-foot last-mile distribution facility in Philadelphia. The build-to-suit project is full occupied by TJX under a triple-net lease.