Westcore acquires 4.1 msf industrial portfolio from USAA Real Estate

Westcore acquires 4.1 msf industrial portfolio from USAA Real Estate
USAA Real Estate sold a 4.1 msf industrial real estate portfolio to Westcore Image: Courtesy of Westcore

San Diego-based commercial real estate investment company Westcore has acquired a 4.08-million-square-foot industrial real estate portfolio across nine major markets in the US from USAA Real Estate for an undisclosed amount.

The portfolio includes 17 Class A buildings constructed between 2016 and 2020 and two land sites.

“This portfolio offers a nice combination of single tenant and multi-tenant buildings providing a wide range of options to smaller and medium sized industrial users, where demand remains strong,” said Westcore Managing Director Hack Adams.

“Purchasing a portfolio comprised of newly constructed assets in both Tier 1 and strong performing Tier 2 industrial markets presents significant upside potential through leasing vacancy and continued rent growth,” added Westcore Managing Director Peter Mette.

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”The portfolio is 71% leased with strong leasing activity on several of the current vacant spaces. The majority of the vacancy exists in buildings delivered in mid- to late-2020. The portfolio’s average building size is 240,015 square feet,” said Westcore in a statement.

The portfolio includes;

  • Atlanta – Douglas Hill Road: 344,327 SF
  • Chicago – Ashbury Drive; Mokena Logistics I & II; Rockwell Logistics Center: 599,955 SF
  • Denver – Potomac Park at Dove Valley I & II: 266,522 SF
  • Houston – Gateway Southwest I & II: 348,626 SF (Land: 11.3 acres)
  • Northern CA – Solano Business Center: 378,405 SF
  • Salt Lake City – I-80 Logistics Center I, II & III: 1,094,842 SF
  • San Antonio – I-35 Logistics Center I: 397,600 SF (Land: 4.1 acres)
  • St. Louis – Fountain Lakes I & 2: 374,750 SF
  • Lakeland, Fla. – Bridgewater Commerce Center: 275,226 SF

Jack Fraker and Ryan Thorton at CBRE represented USAA Real Estate in the transaction, while Westcore represented itself. Val Achtemeier and Mark McGovern at CBRE led placement of new debt for the deal.

“We want to give credit to everyone who overcame a very tight timeframe with a year-end closing that included assuming five loans to get this deal over the finish line,” said Westcore President and CEO Don Ankeny. “We pride our company on being nimble, but this monumental effort would not have been possible without the consummate brokerage and finance professionals involved.”