The Financial Post recently reported that Westcore Properties sold a portfolio of 26 institutional-quality logistics and e-commerce properties, totaling 6.4 million square feet, to San Francisco-based Stockbridge Capital Group. The acquisition is part of a trend toward institutional ownership of properties that are crucial for retailers to meet the increasing customer demand for faster shipping times.
The Commercial Observer details that the portfolio comprises 11 properties in California, 12 in Nevada and one each in Arizona, Salt Lake City, Utah, and Indiana. Since September 2016, Westcore had been acquiring and compiling the value-add assets primarily in off-market deals, then renovating nearly all of them and leasing each one. Despite many of the properties being vacant at the time of Westcore’s purchase, the portfolio was nearly 100 percent leased at the time of Stockbridge’s purchase from Westcore. The San Francisco Business Times reported a purchase price of $570 million by an all-women team at Stockbridge.
Nicole Stagnaro, Stockbridge’s head of opportunistic and platform transactions, said, “We’re excited about this portfolio because the properties are located in markets with above-average population growth, a propensity toward e-commerce buying and selling, lower overall vacancy rates and higher overall rent growth.’’
An Eastdil-secured team of Stephen Silk, Jay Borzi, and Adam Pastor represented Westcore Properties in the deal according to Commercial Property Executive, while Stockbridge represented itself. PGIM Real Estate Finance provided the financing, with Jaime Zadra and Elizabeth Velazquez arranging the acquisition financing.