San Diego Business Journal

Westcore Boosts Real Estate Portfolio with $600M Acquisition

Friday, December 21, 2012

San Diego-based investment firm Westcore Properties has purchased a $600 million portfolio of industrial properties, with 110 buildings spanning approximately 11 million square feet in Northern California and the Midwest.

The transaction is the largest industrial real estate acquisition in California for 2012 and the second largest of the year in the United States, according to brokerage firm Jones Lang LaSalle, which represented the buyers and seller.

A Westcore statement said the company purchased the properties in a joint venture with a fund managed by DRA Advisors LLC, a New York-based investment services firm. DRA has acquired $1.8 billion in real estate in 2012, spanning the retail, office, multifamily and industrial sectors.

The buyers purchased the portfolio from Joe Benvenuti Co., a Sacramento development firm named for its founder, who died earlier this year.

“We have been long-term believers in industrial markets supported by ports and agribusiness, which has led us to invest heavily in greater San Francisco as well as the San Joaquin and Central Valley areas of Northern California,” said Marc Brutten, chairman and founder of Westcore Properties. “This acquisition gives us a strong foothold in Sacramento, a stabilizing market that has an outstanding distribution and transportation network.”

The buildings acquired by Westcore and DRA include 8 million square feet in Sacramento, 1.9 million square feet in St. Louis, and 1 million square feet in Indianapolis. The purchase brings Westcore’s total holdings to more than 24 million square feet.

The privately held Westcore was founded in 2000 and has since acquired and managed more than $3.9 billion in industrial and office assets. The company has regional U.S. offices in San Francisco and Denver, with European offices in Geneva and London.

— Lou Hirsh