TOLLESON, AZ-Cole Real Estate Investments has acquired The Home Depot’s distribution center here for $30.4 million. The non-traded REIT purchased the 466,694 square-foot warehouse/distribution facility in an all-cash transaction from USAA Real Estate Co.
The distribution facility is the third property Cole has purchased from USAA so far this year. Earlier this summer, the Phoenix-based investor acquired the AT&T Regional Headquarters building in Dallas and the Igloo Products’ corporate headquarters, warehouse and distribution facility in Katy, TX. The two properties traded for a total of $67.5 million.
“The acquisition of excellent industrial properties such as this provides for diversification and risk management in our retail focused portfolio,” says Kim Kundrak, chief acquisitions officer for Cole.
Constructed in 2010, the Home Depot property is strategically located in an established warehouse distribution area. Situated on 46.1 acres in Tolleson Commerce Park, it offers a prominent street front location and easy access to I-10.
The tri-docked distribution warehouse building features 30’ clear height ceiling and 50’ x 54’ interior column spacing. It also provides 195’ fenced truck courts with an automated gate.
“This is exactly the type of property that we are targeting for acquisition,” Kundrak says, adding that the property is triple-net leased to The Home Depot, which has 20 years remaining in the initial lease term. The property offers a stable cash flow and an attractive yield, he notes.
Jack Fraker, vice chairman of CB Richard Ellis, represented the seller in this transaction. Cole was represented internally by Boyd Messmann, vice president of acquisitions.
Year-to-date, Cole has acquired more than $1 billion of retail, office and industrial properties across the United States.
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