LANCASTER & WOODLAND, CA (June 14, 2021) – Westcore, a leading West Coast industrial real estate acquisition, development and asset management firm, acquired a property portfolio of two distribution warehouses in California for a combined total of more than 1.4 million square-feet of space.
Westcore acquired the properties, located at 2801 West Ave. H in Lancaster ($69.7 million) and 1755 E. Beamer St. in Woodland ($38.2 million) from Jericho, New York-based Kimco Realty Corp. (NYSE: KIM) for $108 million (~$75 per square foot combined). Both buildings are fully leased to Rite Aid (NYSE: RAD) with 20-year leases.
The acquisition further expands Westcore’s growing industrial portfolio, which spans 13 states and more than 14.5 million square feet.
“Increased tenant demand and lack of industrial supply in the Greater Los Angeles and Inland Empire regions has accelerated industrial warehouse needs in emerging markets such as Lancaster,” says Westcore Managing Director Hack Adams, who oversaw the Lancaster acquisition. “Equally compelling is the fact that the underlying real estate is highly functional. It features generous truck courts, abundant overflow trailer parking and clear heights that meet tenants modern-day demands.”
Westcore Managing Director Peter Mette, who oversaw the Woodland acquisition, added, “The long-term growth prospects in both of these industrial markets provide a scalable opportunity for Westcore to grow our industrial portfolio. We were also attracted to the basis and yield of the long-term lease in place with Rite Aid.”
The Lancaster warehouse comprises 926,860 square feet and the Woodland warehouse is 508,000 square feet.
Darla Longo, Barbara Emmons and Rebecca Perlmutter of CBRE represented the seller, while Westcore represented itself.
“This CBRE team continues to demonstrate a sophisticated understanding of how to match sellers and buyers and how to expedite transactions,” said Adams. “We are grateful for their help and continued collaboration.”
Westcore acquired over $1 billion worth of industrial real estate in 2020, comprising over 11 million square feet of building space.
Westcore is a fully integrated, entrepreneurial commercial real estate investment firm with institutional scale and capabilities. Since its founding in 2000, Westcore has acquired, managed and sold more than $10 billion in assets, comprised of more than 1,000 buildings and totaling over 14.5 million square feet. In addition to its U.S. headquarters in San Diego, Westcore has regional offices in Los Angeles, Oakland and Dallas.