Intercontinental Real Estate, Kennedy Wilson Acquire 877,648-SF Industrial Park in Stockton, CA

Intercontinental Real Estate Corp. and Kennedy Wilson have purchased a 877,648-square-foot Industrial Park in Stockton, CA, for $84 million. 

Located at 1604 Tillie Lewis Drive in California’s Central Valley, the facility is situated on nearly 40 acres off of State Route 4, just five minutes from I-5 and the Port of Stockton. The property is located near several major railways, including Stockton Terminal & Eastern Railroad, UP Intermodal and BNSF Intermodal, as well as Stockton Metropolitan Airport. 

Consisting of three divisible buildings, Stockton Industrial Park features 24’ to 28’ clear heights, dock-high and grade-level loading and a wide range of unit sizes for warehouse and/or manufacturing purposes. The largest of the buildings, totaling 570,000 square feet, offers direct rail service.

Stockton Industrial Park represents Intercontinental’s 35^th industrial acquisition, bringing the Boston-based private equity real estate firm’s holdings to more than 11 million square feet of industrial space.

This is the first investment for the Intercontinental/Kennedy Wilson joint venture. Kennedy Wilson, a Beverly Hills, CA-based global real estate investment company, has approximately $23 billion in assets under management, including 11 million square feet of industrial space across the Western U.S. and Europe.

The property was 100 percent leased at closing with a weighted average lease term of approximately 2.5 years and rents 27% below market rates, providing significant upside in rental growth. Industrial supply in Stockton remains tight, with only 5% vacancy across industrial assets.