Provident Bank Lends $32M on Pennsylvania Warehouse Development
A joint venture between Greek Development and Principal Real Estate Investors has sealed $32.1 million of construction financing for its long-awaited industrial project in a suburb of Philadelphia, the partnership announced Monday.
Provident Bank supplied the loan for the planned 210,564-square-foot warehouse development at 900 Wheeler Way in Langhorne, Pa., on land the JV acquired in 2006. The transaction was handled by Greek’s in-house debt team led by David Greek, Alex Motiuk and Pat Ramirez alongside Principal’s project finance group featuring Ben Sitzmann and Kristine Soliday.
Rob McKee, commercial real estate relationship manager at Provident, closed the deal on behalf of the bank reporting to Paul B. Ciancimino, senior vice president and regional director of the New York metro region.
“Our relationship with Greek Development spans nearly a decade and includes several structured credit facilities throughout the footprint of the bank,” Ciancimino said in a statement.
Greek Development and Principal expanded one of the two buildings on the Bucks County site by 60,000 square feet in 2008. The partnership plans to demolish the second structure in favor of a new facility. The newer warehouse, slated for completion in the middle of 2023, will feature 40-foot clear heights, 31 loading dock doors, a 150-foot truck court, 80 trailer parking stalls and parking for 242 cars.
“The plans for 900 Wheeler Way have been years in the making, and the demolition and subsequent construction on the site will be an exciting milestone,” David Greek, managing partner of Greek Development, said in a statement. “We’re eager to deliver this project in a historically supply-constrained area and to create a warehousing destination for blue-chip e-commerce, logistics and distribution companies that will bring jobs and tax revenue to the local community.”
Based in East Brunswick, N.J., Greek Development has been active on the logistics front of late, landing a $227 million debt package last month from Wells Fargo for two New Jersey industrial projects it is developing in partnership with Advance Realty Investors.
Principal Real Estate Investors, which is affiliated with Principal Global Investors, had a portfolio of $106.2 billion in commercial real estate assets as of March 31.
“The reconstruction of 900 Wheeler Way will provide state-of-the-art warehouse product to help meet the demand of an underserved Class A market,” Rob Klinkner, managing director of Principal Real Estate Investors, said in a statement.
Officials at Provident Bank did not immediately return a request for comment.
Andrew Coen can be reached at firstname.lastname@example.org.