Westcore has acquired 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 and 1744 East Beamer St. in Woodland from Jericho, New York-based Kimco Realty Corp. for $108 million.
Both warehouses in California 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 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.”