LOS ANGELES—Westcore Properties has sold anine-building industrial portfolio to takeadvantage of the prime industrial market. In an earlier story,GlobeSt.com reported that Rexford Industrial, anL.A.-based REIT, purchased the 817,166-square-footportfolio for $88.5 million. The portfolio has assets located inSan Diego, Orange County and Los Angeles counties.


“We keep a keen eye on the dynamics in the market, and once wehave executed a business plan, which we had done on theseparticular assets, we exit at appropriate times,” HackAdams, Westcore Properties SVP, tells GlobeSt.com. “Thisgroup of assets was about 99% leased with the exception of onebuilding, so we saw it as a good time to sell the assets andredeploy to capital into other investment opportunities in theWestern US, and I think it will be a good group of long-term assetsfor Rexford.”


The sale drew significant attention from potential buyersinterested in buying either pieces of the portfolio or theportfolio in its entirety. “We initially received 20-22 offers,”says Adams. Rexford purchased all but one of the assets in theportfolio, an industrial property in San Diego that is now undercontract with an Orange County-based investor. Westcore Properties'criterion in choosing a buyer wasn't limited to the price tag.Other factors, including certainty to close, were also important tothe firm. “We chose a quality firm like Rexford because it followsthrough once we go under contract with them,” Adams adds.


Westcore owned the San Diego properties since the early 2000sand purchased the remainder of the portfolio from 2009 to 2011. TheSan Diego properties were kept for an unusually long timeframe; thecompany typically holds assets for three to five years. Like withmany of its investment properties, Westcorerepositioned and rebranded the assets, investing anywhere from $1to $15 per square foot. Property improvements ranged from addingdrought tolerant landscaping to exterior paint to largeimprovements, like adding dock-high doors.

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.