V
elocity Venture Partners, a Bala Cynwyd-based firm, has made its first foray into Delaware with the acquisition of Wilmington University's Wilson Graduate Center at New Castle Corporate Commons. The $6 million deal brings 78,852 square feet of space under Velocity's umbrella, marking a significant expansion beyond their Pennsylvania and New Jersey holdings.
The two buildings, located at 31 and 47 Reads Way, were constructed in the 1980s for industrial use before being repurposed by Wilmington University in 2004. The university has since vacated the premises, leaving Velocity with a blank slate to attract new tenants. Jamie Vari and Blaise Fletcher of JLL are handling leasing for the properties.
Velocity's Founding Partner Tony Grelli sees this acquisition as an opportunity to target users seeking space between 5,000 to 50,000 square feet. "We're looking for that sweet spot where we can have two to 12 tenants," he explained. Renovations will begin immediately to make the spaces more attractive to potential occupants.
The firm's focus on industrial real estate has been a winning strategy since its inception in 2017. With over 10 million square feet of property under their belt, Velocity Ventures owns approximately 8 million square feet. Grelli credits their niche expertise and timing with the rise of e-commerce for their success. "We got into this space just as e-commerce was becoming a reality," he noted.
The COVID-19 pandemic accelerated the trend towards online shopping, driving demand for industrial space. However, most developers focus on building large sites to accommodate fewer tenants due to economies of scale and cost considerations. Velocity Ventures fills this gap by targeting smaller spaces that are often overlooked.
Grelli expressed enthusiasm about expanding into Delaware, citing its proximity to their existing operations in Pennsylvania and New Jersey. "It's a new state, but it's still within our backyard," he said. With this acquisition, Velocity Venture Partners is poised to bring their unique approach to the First State's industrial real estate market.
