A&B Buys Industrial Portfolio in Central California
- Dec 12, 2008
A four-building, 790,000-square-foot warehouse/distribution portfolio in Visalia, Calif., has been acquired by A&B Properties, the real estate subsidiary of Alexander & Baldwin Inc.The properties are all in Midstate 99 Distribution Center, a 480-acre masterplanned logistics park southeast of Fresno in the California Hwy. 99 corridor. The park was developed by The Allen Group, and the four buildings were all built between 2001 and 2008. The properties are 94 percent leased to a mix of retail and wholesale tenants. The buildings are of concrete tilt-up construction, with ESFR (Early Suppression Fast Response) fire sprinklers, 30-foot clear heights and deep truck courts. Major tenants include International Paper, Coast Distribution and Workflow One. A&B noted that the acquisition will be funded with 1031 tax-deferred proceeds from some of its previous commercial property sales plus the assumption of existing debt. The acquisition, A&B Properties president Norbert Buelsing said in a prepared statement, extends the company’s “real estate investment strategy of acquiring logistics-oriented assets in emerging industrial markets…. Midstate also represents a continuation of our strategy to tax-effectively reinvest real estate sales proceeds into our commercial property portfolio.” With the acquisition, A&B Properties’ commercial real estate portfolio totals 7.9 million square feet of retail, office and industrial space in Hawaii and eight mainland states.