Known as the Midstate Hayes buildings, A&B says its portfolio is 94% leased to a mix of retail and wholesale tenants including International Paper, Coast Distribution and Workflow One. The buildings range from 154,000 square feet to 252,000 square feet. A&B declined to reveal the purchase price, which it has not yet detailed in an SEC filing.
The acquisition takes A&B's commercial property/investment portfolio to 7.9 million square feet in Hawaii and eight mainland states. The acquisition is being funded with 1031 tax-deferred proceeds from recent sales and the assumption of existing debt on the property.
"Midstate extends our real estate investment strategy of acquiring logistics-oriented assets in emerging industrial markets," said Norbert M. Buelsing, president of A&B Properties. The Visalia market is emerging, he says, because 98% of all California zip codes can be reached overnight by UPS Ground from the location.
The Allen Group has developed 2.5 million square feet in 10 warehouses at the center, which fronts both Goshen Avenue and Plaza Drive. A new 50,000-square-foot space at the center is being marketed for lease at $0.29 per sf by the brokerage firm Burr Commercial. Approximately 300 acres there remain available for development.
The street addresses of the Midstate 99 buildings A&B acquired are 2235, 2247 and 2305 North Plaza Dr., and 9840 Ferguson Ave. The leasing agent is Douglass Burr of Burr Commercial Real Estate in Visalia and the property manager is Chris Bush of Pacific Coast Commercial Real Estate in Irvine.
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