Velocity Venture Partners sold a North Wales industrial portfolio at a nearly 50% premium. The firm had purchased the properties three years ago.

The Bala Cynwyd investor sold the seven-building portfolio to NorthBridge for $22.2 million. The buildings total 125,000 square feet near Wissahickon Avenue and Dickerson Road. The sale reached $178 per square foot, one of the region’s highest recent prices for similar industrial assets.

Velocity bought the properties in 2022 for $15 million, or $120 per square foot. The buildings were fully leased at the time, but tenants held short-term leases below market rent, Partner Zach Moore said.

Velocity planned to renovate the portfolio and renew tenants at market rates. About 60% of tenants stayed. The firm filled remaining vacancies with new tenants. All seven buildings were built in the 1980s and ’90s.

Velocity upgraded parking lots, roofs, and other deferred maintenance items. Partner Tony Grelli estimated renovation costs between $500,000 and $750,000.

*Article courtesy of Philadelphia Business Journal

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