An investment group led by California-based Ocean West Capital Partners and its long-term Korean ally Tiger Alternative Investors has sold a seven-property portfolio of US industrial assets for more than $900 million.
The portfolio totalled over 7 million square feet (650,321 square metres) and comprised highly desirable industrial properties net-leased to nationally recognised investment-grade tenants, Ocean West said Wednesday in a release.
The fund manager acquired the portfolio between 2019 and 2020 with an eye towards adding value through active oversight and lease negotiations. The name of the buyer wasn’t disclosed.
“We are very pleased to announce the successful closing of this portfolio, which has performed incredibly well for our investors,” said Ocean West principal Russ Allegrette. “When we acquired these buildings, we focused on assets in top-performing logistics markets with credit tenants and long-term leases in place. Together with Tiger, we continuously explored ways to add value through active asset management and successful lease negotiation.”
Exiting on a High Note
Ocean West had announced the acquisition of the seventh asset in the portfolio, a 2.3 million square foot Dallas distribution centre, in August 2020. The firm paid $246.7 million for the build-to-suit facility, which is fully leased to DIY retail giant Home Depot, as part of a joint venture with Tiger, Korean securities company KIS and now-defunct VEREIT.
At the time of the Dallas warehouse buy, Ocean West said the industrial portfolio had reached $650 million in industrial assets acquired over a period of 15 months.
Ocean West did not identify any specific properties from the portfolio this week. It described the assets as located in established logistics markets throughout the Sunbelt and Northeast, with a tenant list including many large and well-known companies.
The fund manager said the portfolio had a weighted average lease term of over 10 years at the time of the sale, which saw Ocean West and Tiger represented by K&L Gates and the buyer represented by Alvarez & Diaz-Silveira.
Founded in 2010, Ocean West has completed more than $6.9 billion worth of commercial real estate transactions and has managed a portfolio in excess of 15 million square feet of office and industrial space, in addition to 1,600 apartment units and 4,500 student housing beds.
In late 2020, Ocean West teamed up with Tiger and KIS to buy a 567-bed student housing tower at the University of Texas. Earlier that year, the same partners joined US developer Landmark Properties in purchasing a 663-unit residential complex at the University of California at Davis from Greystar Real Estate Partners.
Spun off from one of the top-performing hedge funds in South Korea, Seoul-based Tiger was founded in 2018 and now has more than $4.5 billion in assets under management.