Bentall Kennedy has paid $105m (€92.5m) for the 1.1m sqft NorCal Logistics Center in California, according to sources.
The real estate investment manager’s core US fund bought the newly built, single-tenant property from a partnership between CT Realty and Diamond Realty Investments.
The sale was done through the capital markets group of CBRE. CBRE declined a request for comment.
The property’s offering document revealed that the NorCal Logistics building is leased to Golden State FC for at least the next 10 years. The property’s lease is guaranteed by online retailer Amazon.com.
The cap rate on the sale was 4.95%. This yield is based on the fact that the property is expecting a first-year net operating income of $5.2m, according to industry sources.
The average asking lease rate for industrial assets in the Central Valley region of California grew 11% year-over-year in 2018 and 24% over the last three years, as stated in the property’s offering document.
Steve Reents, senior vice president and head of transactions for the Western US for Bentall Kennedy, said: “Our investment in the NorCal Logistics Center building represents an opportunity to generate long-term, attractive returns for our fund given that its quality stands out in the marketplace and the space is fully leased to a strong credit tenant.”
Carter Ewing, managing partner at CT Realty, said: “NorCal Logistics Center was developed to serve the demands of today’s most aggressive logistics users while meeting the most stringent institutional investor demands.”
