Two Distribution Facilities Go to Westcore for $108M

Westcore recently acquired a two-warehouse/distribution portfolio with a combined total of more than 1.4 million square feet for $108 million. The seller was Jericho, NY-based Kimco Realty Corp.

The properties are located at 2801 West Ave. H in Lancaster and 1755 East Beamer St. in Woodland. Both buildings are fully leased to Rite Aid with 20-year leases.

“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 Hack Adams, Westcore managing director 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.”

The Lancaster warehouse comprises 926,860 square feet and the Woodland warehouse is 508,000 square feet.

“The long-term growth prospects in both of these industrial markets provide a scalable opportunity for Westcore to grow our industrial portfolio,” adds Peter Mette, Westcore managing director who oversaw the Woodland acquisition. “We were also attracted to the basis and yield of the long-term lease in place with Rite Aid.”

The acquisition further expands Westcore’s growing industrial portfolio which spans 13 states and more than 14.5 million square feet. Westcore acquired more than $1 billion totaling 11 million square feet of industrial space in 2020.

Darla Longo, Barbara Emmons and Rebecca Perlmutter of CBRE represented the seller, while Westcore was self-represented.