Westcore Third Platform Closing Increases Buying Power to $1.5B

San Diego-based Westcore has closed its third real estate platform, boosting its total buying power to $1.5 billion. The third platform is anchored by a $100 million co-invest commitment from the firm’s longstanding executive team. This is Westcore’s largest investment vehicle to date.

“We have an established track record of providing strong returns to our investors,” Don Ankeny, president and CEO of Westcore, tells GlobeSt.com. “We’ve also put a lot of time and energy into developing relationships with top brokers who exponentially increase our ability to identify quality deals that might go unnoticed by other investors. Our investors also recognized the strong team we have in-house and our ability to act with speed, agility and adaptability.”

With this latest investment, Westcore will continue to focus on primary and secondary markets with attractive supply-demand dynamics, targeting target core plus, institutional warehouse investments in addition to value added and industrial development projects. “We will continue our focus on industrial real estate, but we will expand our geographic reach beyond the Western U.S. and into core plus institutional warehouse investments in addition to value added and industrial development projects,” says Ankeny. “We’re deploying this strategy because we are investing for the long-term now, and our goal is to build an institutional-quality portfolio of industrial assets that are well located, highly functional and will be in demand from users throughout the business cycle.”

In addition to this third real estate platform, Westcore closed its first separately managed account with a major state pension fund. Along with second separately managed account with a national insurance company, the company has a combined institutional capital commitment of $550 million. The two closings will help Westcore achieve its expansion goals. “With a capital provider that is aligned with our goal of investing for the long term, we will target large portfolio deals, but also single properties worth a minimum of $10 million over the next two to three years,” says Ankeny. “We expect to become a more active bidder in the industrial real estate market, which our new investment platform allows us to do.”

In achieving these goals, Westcore will stay true to its investment strategy, however, the firm doesn’t have a specific capital allocation for next year. “We will target a mix of core plus and value-add investments as well as industrial development projects,” says Ankeny. “Rather than setting different asset type allocation goals, our overarching goal is to build a diversified industrial portfolio of scale and quality that will stand the test of time.”