DH Property Holdings Gets $54M for Philly Industrial Project
ACORE Capital provided the funding for this development.
DH Property Holdings LLC, of New York, has received a $53.8 million construction loan for its PhilaPort Logistics Center. ACORE Capital provided the funds in a deal arranged by Walker & Dunlop.
The 282,250-square-foot last-mile warehouse and distribution center is currently under development on at 15-acre site at 3060 S. 61st St. in Philadelphia. The project broke ground earlier this month and is scheduled to deliver in the third quarter of 2025.
Designed to achieve a LEED Silver certification, PhilaPort Logistics Center will feature 40-foot clear heights, a 330-foot building depth, 135-foot truck court depth, 50 exterior dock doors, two drive-in doors, 72 trailer parking stalls and 187 car parking stalls. The rear-load building will also include about 5,000 square feet of speculative office space.
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The property is 2.9 miles from the Philadelphia International Airport, 3.8 miles from Center City and 6 miles from the Packer Avenue Marine Terminal. Chris Pennington of Binswanger and Jonas Skovdal of Cushman & Wakefield will be leading the leasing activity for the facility.
Walker & Dunlop’s New York Capital Markets team, led by Aaron Appel, Jonathan Schwartz, Keith Kurland, Adam Schwartz and Michael Ianno, arranged the financing.
Just a year ago, DH Property Holdings landed a $175 million financing package for 5000 Richmond St., a 750,000-square-foot last-mile distribution project in Philadelphia. In that deal, too, Walker & Dunlop arranged all of the funding: a $135 million construction loan from Massachusetts Mutual Life Insurance Co., plus $40 million in partner equity.
Stable vacancy across Philadelphia’s industrial market
The metro Philadelphia industrial market is characterized currently by a stable vacancy of 6.7 percent, though construction starts have declined because of “higher interest rates, available inventory, and the impending arrival of 13.9 million square feet of new space by mid-2024,” according to a first-quarter report from Cresa.
Cresa also notes that Philadelphia, like some other East Coast ports, is benefitting—sadly—from container traffic being diverted from Baltimore, where the Francis Scott Key Bridge collapsed on March 26. As things now stand, the design-build team for the replacement bridge should be chosen by late summer, and the target for completing the new bridge is October 2028.
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