The portfolio is comprised of Westcore Pacific Center, Westcore Trade, Westcore Miramar, Westcore Torrey, Westcore Business Park, Westcore Scenic View, Westcore Corporate Center and Westcore Executive Park. Stretching across five San Diego submarkets, the portfolio is "geographically diverse," according to Nick Psyllos with CB Richard Ellis' San Diego office. Psyllos, along with Darla Longo of the firm's Ontario office, brokered the transaction. The new acquisition also offers a range of product types, as its assets vary from corporate headquarters and R&D facilities to multi-tenant industrial product, Psyllos tells GlobeSt.com. The sale presented "a pretty unique opportunity to increase holdings that cover a wide spectrum," Psyllos explains.
At the time of sale, the portfolio had an overall occupancy level of 90%. Larry Jackel, Dean Asaro, Dave Demarest, Doug Works and Bill Dolan with CB Richard Ellis' San Diego office are currently handling leasing at the portfolio's various properties. Major tenants now occupying space in the facilities include Kreiss Enterprise with 37,665-sf and Southwest Power Inc. with 35,990-sf. The complexes themselves range in size from 47,542-sf to 203,518-sf.
The fund that acquired the industrial portfolio is managed by RREEF America LLC, which is a wholly-owned subsidiary of Deutsche Bank Asset Management's real estate investment management arm, known as DB Real Estate. RREEF officials decided to buy the industrial portfolio because "they were interested in expanding their market share for this type of product in San Diego," Psyllos says.
The buyer acquired the portfolio from a group of Westcore Industrial Properties subsidiaries comprised of Westcore SDIPG LLC, Westcore Industrial Properties LLC, BRS Westcore Scenic View LLC, BRS Westcore Kearny Mesa LLC and BRS Westcore Executive Park LLC. Westcore officials felt it was "the right market timing to divest of these assets," Psyllos notes. Los Angeles-based Westcore will use the proceeds from the sale to invest in other commercial real estate opportunities in the Western United States, according to Marc Brutten, the firm's president.
Another group of Westcore subsidiaries also recently sold a 17-property industrial portfolio comprised of facilities located primarily in the Los Angeles Basin. That portfolio, which was bought by Multi-Employer Property Trust of Washington DC, sold for $115 million.
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