WPT Capital Advisors Pays $133M for Bay Area Portfolio
JLL Income Property Trust has sold Pinole Point Distribution Center, a three-building industrial park in Richmond, Calif., for $132.5 million. WPT Capital Advisors acquired the property using an $85 million acquisition loan from PCCP.
Divesting from this Bay Area property is another example of the company’s long-term strategy of recycling capital at opportunistic points across real estate market cycles. The deal netted a 50 percent gain for JLL Income Property Trust, which acquired Pinole Point in 2016.
Located at 6000, 6015 and 6025 Giant Road, the three warehouses total 518,000 square feet. The properties provide tenants access to critical transportation infrastructure, including major interstate highways, the Port of Oakland, Oakland International Airport, and the densely populated San Francisco Bay Area, where modern warehouse facilities have historically been in short supply.
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The company said that selling out of its industrial portfolio’s largest vacancy freed up more than $125 million to use during the early stages of a new market cycle for core real estate. The runup in valuations across the warehouse property sector was “highly accretive” to its portfolio’s performance.
Industrial market focus
JLL Income Property Trust plans to invest in higher-occupancy, longer-leased, newer properties with the potential for improved core returns at reduced risks as it maintains its significant overweight standing in industrial properties. Its $6.6 billion portfolio, which includes 55 industrial properties worth $2.1 billion, accounts for 31 percent of its holdings.
Nearby in July, Hines obtained $120.3 million to develop Edenvale Industrial Park, a 636,000-square-foot project in San Jose, Calif. Bank OZK provided the senior portion of the financing—$99.8 million, according to CommercialEdge information—while Affinius Capital originated the remainder.
Last year, JLL Income Property Trust fully subscribed its JLLX Diversified II, DST, a five-property, $200 million diversified portfolio structured as a Delaware Statutory Trust to provide 1031 exchange investors the opportunity to defer taxes on gains from the sale of appreciated real estate.
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