Kimco sells two warehouses for $ 108 million
Westcore, a west coast industrial real estate company, has acquired a 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 (top photo) and 1744 East Beamer St. in Woodland, from Jericho, New York-based Kimco Realty Corp. for $ 108 million. Both buildings are fully leased to Rite Aid 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 the lack of industrial supply in the Greater Los Angeles and Inland Empire areas have accelerated the need for industrial warehouses in emerging markets such as Lancaster,” said 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 lots, plentiful parking for overflow trailers, and headroom that meet modern tenant demands.
Westcore Managing Director Peter Mette, who oversaw the Woodland acquisition, added: “Long-term growth prospects in these two industrial markets provide Westcore with a scalable opportunity to grow its industrial portfolio. We were also drawn to the basis and performance of the long term lease in place with Rite Aid. “
The Lancaster warehouse has 926,860 s / f and the Woodland warehouse (above) is 508,000 s / f.
CBRE’s Darla Longo, Barbara Emmons and Rebecca Perlmutter represented the seller, while Westcore represented herself.
“This CBRE team continues to demonstrate a sophisticated understanding of how to match sellers and buyers and expedite transactions,” Adams said. “We are grateful for their help and continued collaboration. “
Westcore acquired over $ 1 billion in industrial buildings in 2020, comprising over 11 million square feet of construction space.
In April, Kimco, one of North America’s largest publicly traded owners and operators of outdoor malls and mixed-use assets anchored in grocery stores, and Weingarten Realty Investors, an owner, manager and developer of Sun Belt shopping centers anchored in a grocery store, announced a merger.
Kimco CEO Conor Flynn said the deal gives Kimso greater density in Sun Belt markets and visibility into the trends that are shaping needs-based retailing.
Weingarten CEO Drew Alexander added: “The combination of these highly complementary platforms is a win-win situation for the shareholders of both companies. After looking at the deal from all angles, it has become increasingly clear that the potential of the integrated business is far greater than the sum of its parts.
“The increased size and scale of the combined company, as well as its financial strength, are expected to result in a favorable cost of capital, making it easier for the combined company to seek value creation opportunities. “
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