The 225,000-square-foot retail center, which was sold by APS Associates, is 90 percent vacant. Its new owner now plans to convert the property into a multi-tenant industrial site. The entire project is expected to cost $22 million, including both acquisition costs and construction costs.
Velocity Venture Partners Founding Partner Zach Moore foresees the space as a mix of warehouse distribution and specialty manufacturing tenants.
Velocity is known for buying distressed assets and turning them into industrial space. The latest acquisition is an especially good choice for the company as it already has certain elements in place. The Richland Plaza also represents Velocity’s first acquisition of a large shopping center.
“The most exciting component of this project for us is that it’s incredibly unique and we’re the first to do it,” said Moore. “Our competitors are focused on sourcing true industrial products. We continue to find ways to source deals creatively.”
Read more about Velocity Venture Partners in the Philadelphia Business Journal.
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