US-based real estate company Walker & Dunlop has sourced $40m in limited partner (LP) equity and $135m in construction funding for a last-mile industrial distribution centre in Philadelphia, US.

The proceeds will support the construction and subsequent leasing of 5000 Richmond Street, a 750,000ft² two-building facility.

The property will offer residents convenient access to the I-95, I-276, and I-476 motorways, enabling quick access to New York City and Washington DC.

Walker & Dunlop NY Capital Markets' senior managing director and co-head Aaron Appe said: “We are pleased to announce the successful debt and equity capitalisation of this exceptional project.

“This multiyear effort began with our team sourcing LP capital to help DHPH [DH Property Holdings] acquire the land in the depths of Covid and culminated in a competitive construction financing package from Barings [Real Estate].”

Walker & Dunlop's officials, comprising Appe, Aaron Appel, Keith Kurland, Jonathan Schwartz, Mo Beler, Michael Ianno, and Michael Diaz served as the exclusive consultants to DH Property Holdings and an undisclosed life insurance company.

Barings Real Estate managing director Jonathan Neff said: “As we navigate this challenging environment, Barings is focused on providing financing solutions for strong sponsors, particularly those with high-quality projects located in strong markets.

“Barings shares DHPH’s conviction in urban infill industrial, and we are pleased to partner with them on this best-in-class project.”

When completed, the property will be a Class A industrial campus with 40ft clear heights, 112 loading dock doors, 206 trailer parking spots, and 759 car spaces.

DHPH executive vice-president Aaron Malitzky said: “We thank the Walker & Dunlop team for assisting in the successful capitalisation of this market-leading development.

“We also hope that this is the first of many transactions with the Barings team, who was great to work with despite a volatile capital markets landscape.”