Posts Tagged ‘Industry’

San Francisco company buys Antioch industrial buildings as part of large property portfolio purchase

Tuesday, September 17th, 2019

The industrial buildings on Wilbur Avenue and Wilbur Lane in Antioch purchased by the Stockbridge Capital Group.

“For retailers to meet the increasing consumer demand for faster shipping times”

San Francisco-based Stockbridge Capital Group has purchased a 6,350,000-square-foot, Class A industrial property portfolio from Westcore Properties for an undisclosed sum. It includes the 665,775-square-foot, two-building Antioch Distribution Center, located at 2200-2300 Wilbur Avenue and 2110-2300 Wilbur Lane, with both buildings being fully leased.

The acquisition is part of a trend toward institutional ownership of properties that are pivotal for retailers to meet the increasing consumer demand for faster shipping times.

“It is no secret that e-commerce continues to enhance the attractiveness of high-quality and well-located warehouse and distribution properties,’’ said Nicole Stagnaro, Head of Opportunistic & Platform Transactions at Stockbridge. “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.’’

Stockbridge Chief Financial Officer Kristin Renaudin also noted a novel feature of the deal: nearly all of the senior executives on the buyer’s side – representing investors, lenders, lawyers and property managers – are women. “It’s certainly the first time we’ve seen this,’’ Renaudin said. “You don’t often see multiple senior women involved in industrial deals, so this was particularly unusual, and a hopeful sign for women executives.’’

“We were pleased with the completion of this portfolio transaction to Stockbridge, which we strategically assembled over the past several years in primarily off-market transactions, at a notable gain for our shareholders,” said Westcore Properties’ chairman Marc Brutten.

With 26 assets across nine markets in five states, the portfolio is nearly 100% leased, despite many of the properties being vacant at the time of Westcore’s purchase. Westcore acquired all of the properties in the portfolio since September of 2016 and renovated nearly all of them. The buildings’ tenants are primarily big-box and last-mile users.

“This sale demonstrates our business strategy,” said Don Ankeny, president and CEO of Westcore Properties. “We’re careful to select value-add properties where we can make a difference and return a premier asset to a thriving industrial market.”

To see the entire list of properties included in the purchase, click here.

On September 11, 2017, Westcore Properties acquired the Antioch Distribution Center, for $32.4 million. Westcore purchased the manufacturing/distribution project from the Covington Group, based in Dallas, Texas. Covington Group was represented by Steve Hermann, Scott Bertrand and Brooks Pedder of Cushman & Wakefield in the transaction. Westcore Properties is a global, entrepreneurial commercial real estate investment firm with a specialized focus in Western United States commercial and industrial properties. Stockbridge is a private equity real estate investment management firm led by veteran industry professionals. The firm’s portfolio comprises assets across the investment risk spectrum, including core, value-added, and opportunistic strategies. Stockbridge and its affiliates have approximately $14.6 billion of assets under management (as of June 30, 2019) spanning all major real estate property types, and certain specialty property types, throughout the United States.