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Kimco sells two warehouses for $108M

Westcore, a West Coast industrial real estate a firm, 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 (pictured top) 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 lack of industrial supply in the Greater Los Angeles and Inland Empire regions has accelerated industrial warehouse needs 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 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.”

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The Lancaster warehouse comprises 926,860 s/f and the Woodland warehouse (above) is 508,000 s/f.

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.”

Westcore acquired over $1 billion worth of industrial real estate in 2020, comprising over 11 million square feet of building space.

In April, Kimco, one of North America’s largest publicly traded owners and operators of open-air, grocery-anchored shopping centers and mixed-use assets, and Weingarten Realty Investors , a grocery-anchored Sun Belt shopping center owner, manager and developer, announced a merger.

Conor Flynn, Kimco’s CEO said the deal gives Kimso greater density in the Sun Belt markets and visibility into the trends shaping necessity-based retail.

Weingarten CEO Drew Alexander, added, “Combining these highly complementary platforms is a win-win for shareholders of both companies. After examining the deal from every angle, it became increasingly clear that the potential of the integrated business is much greater than the sum of its parts.

“The combined company’s increased size and scale, together with its financial strength, should drive an advantageous cost of capital, allowing the combined company to more readily pursue value creation opportunities.”

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