Dealmaker: VEREIT, Ocean West Acquire $654M in Industrial Facilities

VEREIT, Phoenix, and Ocean West Capital Partners LLC, El Segundo, Calif., acquired $654 million in industrial properties.

The partnership acquired a 2.3-million-square-foot distribution and warehouse facility leased by an investment-grade home improvement retailer for $246.7 million. The Dallas asset is a newly constructed build-to-suit property with a twenty-year lease.

The acquisition was part of VEREIT’s industrial partnership with Korea Investment & Securities Co. Ltd., which Ocean West advises.

NorthPoint Development, Riverside, Mo., developed the property and will stay on as a joint venture partner. CBRE National Partners, Los Angeles, represented the parties in the disposition and joint venture transaction.

VEREIT and Ocean West also closed on a previously announced partnership that includes six industrial assets totaling 4.8 million square feet for $407 million. The assets made up Korea Investment & Securities’ initial portfolio.

Eastdil Secured Managing Director Mark Penrod and Vice President Daniel Prendiville represented VEREIT in the transaction.

The stakeholders agreed to a traditional 80/20 equity structure. The industrial portfolio is currently 100 percent leased with assets in five states. The capitalization rate was below 6.0 percent.