Westcore Sells in Concord and Buys in Union City

Westcore, San Francisco, Cushman & Wakefield, Prudential, Concord, Union City, East Bay real estate, Bay Area news, Bay Area commercial real estate
Westcore, San Francisco, Cushman & Wakefield, Prudential, Concord, Union City, East Bay real estate, Bay Area news, Bay Area commercial real estate
1320-1390 Willow Pass Road

By Jon Peterson

San Diego-based Westcore Properties has sold an office building in Concord and bought an industrial property in Union City.

[contextly_sidebar id=”be505416c5a3a92cfe545062696de489″]The company has completed the sale of two Class A office buildings in Concord located at 1320-1390 Willow Pass Road. The sales price on the nearly 347,000 square foot buildings was $55 million or $158 per square foot.

The company did earn a significant profit on the sale. It along with its equity partner, Glendale, Calif.-based American Realty Advisors, had paid $41 million for the properties when they were acquired in the fall of 2011.

“Both us and our equity partners agreed to sell the property at the end of last year. We felt that we had completed the business plan on the property. We had acquired the property from a real estate lender. It was a distress sale. The previous ownership had made the decision not to invest any more capital into the property for things like tenant improvements or hire any brokers to assist in the leasing up of the empty space. We have been wanting to increase the occupancy from 50 percent to 83 percent,” says Don Ankeny, president and chief executive officer of Westcore.

The property was sold to a joint venture between Newark, N.J.-based Prudential Real Estate Investors and San Francisco-based Montgomery Advisors. Both of these firms did not respond to either phone calls or e-mails seeking comment for this story.

Westcore was represented in the deal by Grant Lammerson, a senior director with Cushman & Wakefield in its San Francisco office.

The property in Concord was the second investment that Westcore had made with American Realty. The other was the acquisition of the 519,980 square foot 1221 Broadway office building in Oakland in 2012.

“Our company’s real expertise is in the ownership and management of industrial properties. We felt it would make sense to leverage our capital sources when we purchase office buildings and that is why we brought in American Realty on the two office building deals,” said Ankeny.

Westcore has acquired the 115,155 square foot industrial property located at 1250 and 1590 Whipple Road in Union City. The purchase price was $8 million. The seller of the property was Whipple Inc., a private company. It agreed to leaseback a portion of the property for the next few of months. This agreement can be terminated within 30 days notice.

Both the buyer and the seller were represented in the transaction by Kevin Ahaesy, a principal with Avison Young in its San Francisco office. This real estate services firm will be involved with the leasing of the property going forward.

In the past the property had been leased by Dreyer’s Ice Cream. There is in the property a 58,210 square foot dedicated freezer space. The expectation is that food distribution companies will be the targeted audience for this space. These kinds of tenants would use the space as a regional distribution operation.

Westcore sees there are two options for the future of the Union City property. “We could keep the property as it’s configured now and lease up all of the space. A second possibility is to keep the freezer space and demolish the other space and make it all use for a food distributor. If we took this option, the property would increase to a total of 140,000 square feet, “said Ankeny.

West Coast Commercial Real Estate News