US property group Intercontinental Real Estate has teamed up with Kennedy Wilson to acquire a $71.8m (€66m) warehouse and distribution facility in California.
The two firms have acquired Stockton Commerce Center, a fully-let 655,976sqft asset in the California Central Valley city of Stockton.
Stockton Commerce Center, located on a 36.7-acre site at 1624 Army Court, is adjacent to an 877,648sqft manufacturing and distribution facility the pair acquired in 2022.
Steve Cook, acquisitions managing director at Kennedy Wilson’s US commercial group, said: “We are pleased to expand our existing partnership with Intercontinental and to build on the success of our industrial investment in Stockton with this acquisition.
“We believe there is a promising runway for continued industrial growth in the Central Valley, and with capabilities for cold storage, this high-quality asset fills an important need in the local market.”
Jessica Levin, managing director, West Coast at Intercontinental Real Estate, said: “At the geographic centre of Northern California, Stockton provides a strategic logistics advantage due to its robust ground transportation system and variety of intermodal solutions.
“This was a strategic acquisition for the partnership as it allows us to control two neighbouring large-scale core assets totalling more than 1.5m sqft of highly functional industrial space in one of the most important logistics hubs in the country.”
The latest acquisition increases Intercontinental Real Estate’s industrial holdings to more than 12m sqft. The Boston-based private equity real estate firm ranked 108th in the IPE Real Assets Top 150 Real Estate Investment Managers 2023 league table.
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