VEREIT, Ocean West Purchase Distribution Center in Dallas for $246.7M
DALLAS — VEREIT Inc. and Ocean West Capital Partners LLC have teamed up to acquire a 2.3 million-square-foot industrial facility in Dallas. The newly built property is located at 9314 W. Jefferson Blvd. and is fully leased to The Home Depot.
NorthPoint Development sold the build-to-suit property to the buyers for $246.7 million. The Missouri-based developer is staying on as a joint venture partner. There are 20 years remaining on the lease with The Home Depot.
“The property’s logistically desirable location along with the tenant’s creditworthiness and the established long-term lease make this a strong investment for the growing partnership,” says Thomas Roberts, VEREIT’s executive vice president and chief investment officer.
The property, known as Dallas Global Industrial Center, offers access to Interstate 30, Texas Highway 161, Loop 12, Interstate 20 and Interstate 35E. The park also has a direct spur from the main Union Pacific Rail Service line.
The acquisition is the latest in VEREIT’s (NYSE: VER) partnership with Korea Investment & Securities Co. Ltd., a global financial services firm based in Korea that Ocean West advises, as well as Tiger Alternative Investors Ltd. To date, the VEREIT-led partnership has bought seven Class A, single-tenant industrial properties totaling $653.7 million.
“VEREIT will continue to expand this portfolio by seeking out high-quality assets that play a necessary role in the industrial market,” says Roberts.
CBRE represented both parties in the transaction.
VEREIT is a Phoenix-based REIT that owns and manages a large portfolio of single-tenant properties. The company’s portfolio includes $14.7 billion in real estate assets totaling 3,800 properties and 88.9 million square feet.
VEREIT’s stock price closed on Monday, Aug. 10 at $6.67 per share, down from $9.56 a year ago.
Ocean West Capital Partners is a real estate investment and management firm based in El Segundo, Calif. Since its founding in 2009, Ocean West has acquired and operated office, industrial and multifamily properties valued in excess of $3.5 billion.
The company has completed over $6.5 billion of commercial real estate transactions and has also managed over 13 million square feet of commercial and multifamily properties for its own account and on behalf of third-party owners and loan servicers.
— John Nelson