VEREIT, Ocean West Acquire Dallas Industrial Property for $247M
- Aug 12, 2020
VEREIT Inc. and Ocean West Capital Partners LLC have acquired a 2.3 million-square-foot distribution and warehouse facility in Dallas for $246.7 million from NorthPoint Development—which developed the asset and will be part of the joint venture. The facility, located at 9314 W. Jefferson Blvd., is fully leased by an unidentified investment-grade home improvement retailer.
The acquisition is part of VEREIT’s industrial partnership with Korea Investment & Securities Co. Ltd., which is advised by Ocean West. The partnership, which began in May 2019, focuses on the acquisition of single-tenant industrial assets under long-term leases to industrial-grade tenants.
This is the seventh property acquired for the portfolio, which now has approximately $653.7 million in assets. The first six assets launched the partnership last spring with the $407 million acquisition of 4.8 million square feet of industrial space across five states. At the time, the stakeholders agreed to a traditional 80/20 equity structure. As part of the agreement, VEREIT—a Phoenix-based full-service operating company that owns and manages one of the largest portfolios of single-tenant commercial properties in the U.S.—handles acquisitions, property management, legal, leasing and assessment management teams for the portfolio.
Thomas Roberts, executive vice president & chief investment officer at VEREIT, said in a prepared statement that the Dallas property’s logistically desirable location along with the tenant’s creditworthiness and the long-term lease made it a strong investment for the partnership’s growing portfolio.
CBRE National Partners represented the parties in the disposition and the transaction.
VEREIT’s total real estate investments amount to $14.7 billion, including approximately 3,800 properties and 88.9 million square feet of space. In early March, a partnership between VEREIT and Arch Street Capital Advisors’ institutional client, Gatehouse Capital, acquired DHL Supply Chain’s North American headquarters, a newly constructed, 145,000-square-foot Class A office building in Westerville, Ohio, from the Daimler Group for $33.1 million.