Kimco sold two warehouses for $ 108 million



Westcore, a West Coast real estate company, has acquired a portfolio of two warehouses in California totaling over 1.4 million square feet.

Westcore has acquired properties located at 2801 West Ave. H in Lancaster (pictured above) and 1744 East Beamer St. in Woodland, from Kimco Realty Corp., based in Jericho, NY, for $ 108 million. Both buildings are fully leased by Rite Aid for 20 years.

The acquisition further expands Westcore’s growing industrial portfolio, which spans 13 states and covers more than 14.5 million square feet.

“Increased tenant demand and a lack of industrial supply in the Greater Los Angeles and Inland Empire regions have increased the need for industrial warehouse space in emerging markets such as Lancaster,” said Westcore managing director Huck Adams, who oversaw the Lancaster acquisition. “Equally convincing is the fact that the main property is very functional. It has spacious truck yards, ample trailer parking and a clean height to meet modern tenant demands. ”

Westcore Managing Director Peter Mette, who oversaw the Woodland acquisition, added: “Long-term growth prospects in both of these industrial markets provide Westcore with scalable opportunities to grow our industrial portfolio. We were also attracted by the basis and profitability of the long term lease with Rite Aid. “


The Lancaster warehouse is 926,860 square meters and the Woodland warehouse (above) is 508,000 square meters.

The seller was represented by Darla Longo, Barbara Emmons and Rebecca Perlmutter of CBRE, and Westcore itself.

“This CBRE team continues to demonstrate a deep understanding of how to match sellers and buyers and how to expedite transactions,” Adams said. “We are grateful for their help and continued cooperation.”

Westcore acquired over $ 1 billion in industrial property in 2020, representing over 11 million square feet of construction space.

In April, Kimco, one of North America’s largest publicly traded owners and operators of open-source grocery malls and mixed-use assets, and Weingarten Realty Investors, owner, manager and developer of Sun Belt mall based in a grocery store, announced a merger.

Conor Flynn, CEO of Kimco, said the deal gives Kimso greater density in the Sun Belt markets and a vision for the trends shaping retail as needed.

Weingarten CEO Drew Alexander added: “Combining these complementary platforms is a win-win for the shareholders of both companies. After examining the deal from all sides, it became more and more evident that the potential of an integrated business far exceeds the sum of its parts.

“The increased size and scale of the combined company, together with its financial strength, should lead to a profitable cost of capital that will enable the combined company to be more willing to exploit value creation opportunities.”

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