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Westcore Sells 44-Building Office-Industrial Portfolio

SAN FRANCISCO-Ahead of $320 million of portfolio acquisitions from Mack-Cali Realty Corp., Westcore Properties completes the $352.5-million sale of a 1.6-million-sf real estate portfolio to Houston-based Hines Interests LP.

By Brian K. Miller | Updated on November 09, 2006

SAN FRANCISCO-Westcore Properties of San Diego has sold a 1.6-million-sf portfolio of 44 buildings in the Silicon Valley to Hines Interests LP for $352.5 million. The portfolio, acquired in three separate transactions between fall 2004 and summer 2005, includes office, R&D, industrial and flex buildings in the cities of San Jose, Fremont, Foster City, Sunnyvale, Santa Clara, Redwood City and Campbell.

Westcore CEO Donald Ankeny says the 75%-occupied portfolio was a value-add play for the company and the company had accomplished its objectives by renovating common areas, raising occupancy, preparing vacant space for quick move-ins and dealing with “a fair amount” of near-term rollover. “We…felt that the time was right to sell a sizeable amount of our Bay Area holdings,” he says. “We plan to re-invest some of the capital into other properties in the Northern California region as well as key markets throughout the western states.”

In the coming days and weeks, Westcore will be acquiring two portfolios from publicly held Mack-Cali Realty Corp. for a total cost of about $320 million. Over the next 12 months, Ankeny projects that the company will continue its rapid growth by acquiring in excess of $750 million in assets. In addition to large, institutional-grade portfolios, Ankeny says the company will be acquiring single core-plus and value-add assets.

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