Industrial investor Westcore had an impressive 2020, acquiring $1 billion in industrial assets that totaled 11 million square feet. The firm’s holdings now span 10 states in the US.
Westcore closed the year with the acquisition of a 4-million-square-foot industrial portfolio from USAA Real Estate. The portfolio—which was purchased for an undisclosed amount—is located in nine markets across the US, including Atlanta, Chicago, Houston and Denver, among others. The average property size is 240,015 square feet.
The properties in the portfolio are all new construction, built between 2017 and 2020. The assets are 71% leased, and the majority of the vacancy exists in newly constructed properties within the portfolio. The vacancy creates significant opportunity to drive value through lease-up and improved rents.
This sale was a major win at the end of the year, but Westcore was an active buyer throughout 2020. In May, following the onset of the pandemic, Westcore acquired a 155,000-square-foot
, class A industrial warehouse located at 8380 Pardee Dr. in Oakland, CA for $40.5 million. The property had 8,000 square feet of cold storage, 30-foot clear height, ESFR fire suppression and an excellent location adjacent to the Oakland airport. This was Westcore’s first acquisition in the Oakland market in two years, and at the time, the firm had already closed an additional five deals totaling $95 million.
Westcore isn’t alone. Several investors increased exposure to the industrial market in 2020. At the end of last year, KKR acquired
a 9.7 million-square-foot industrial portfolio for $835 million. The single transaction grew KKR’s industrial holdings by nearly one-third, giving the firm a portfolio of 30 million square feet. The transaction was part of a surge of activity at the end of the year, which included the purchase of two industrial distribution properties in Texas totaling approximately 1.8 million square feet for $171 million and four industrial distribution properties in Greater Atlanta totaling 1.6 million square feet for $136 million.
Like Westcore, KKR is also focusing on tier 1 and tier 2 markets, including Atlanta, Chicago, Central Florida, Dallas, Houston, Central Pennsylvania and South Florida.