Intercontinental RE Corp/Kennedy Wilson Acquire Stockton, CA Logistics Facility for $71.8 Million

STOCKTON, Calif. - June 3, 2024 - PRLog -- Intercontinental Real Estate Corporation ("Intercontinental") in joint venture with Kennedy Wilson has acquired Stockton Commerce Center, a fully leased 655,976-square-foot warehouse and distribution facility in the California Central Valley city of Stockton for $71.8 million.

Located on a 36.7-acre site at 1624 Army Court, the property is immediately adjacent to an 877,648-square-foot manufacturing and distribution facility acquired by the joint venture in 2022.   Both benefit from their desirable location off of State Route 4, just five minutes from the Port of Stockton and California Interstate 5 (I-5), the major north south trucking route in California.    The two facilities are also served by several major railways, including Stockton Terminal & Eastern Railroad, UP Intermodal and BNSF Intermodal, as well as Stockton Metropolitan Airport.Stockton is ideally located with direct truck access, both north-south via I-5 and State Highway 99 and east-west via I-205, I-580 and I-80, allowing service throughout California, Nevada and other western states.

"At the geographic center of Northern California, Stockton provides a strategic logistics advantage due to its robust ground transportation system and variety of intermodal solutions," said Jessica Levin, Managing Director, West Coast at Intercontinental who led the acquisition team.  "This was a strategic acquisition for the partnership as it allows us to control two neighboring large scale core assets totaling more than 1.5 million square feet of highly functional industrial space in one of the most important logistics hubs in the country."

Intercontinental's acquisition of Stockton Commerce Center brings the Boston-based private equity real estate firm's industrial holdings to more than 12 million square feet.

"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," said Steve Cook, Managing Director, Acquisitions for Kennedy Wilson's U.S. Commercial Group. "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."

Jeff Chiate, Rick Ellison, and Matt Leupold of Cushman & Wakefield's National Industrial Advisory Group—West represented the seller in the transaction.

According to Cushman & Wakefield's latest market research report, the Central Valley industrial submarket posted a vacancy rate of 6.7% in Q1 2024. Strong barriers to new development coupled with an extremely limited supply of existing product have driven rental rates to historic highs. Notably, according to the report, Stockton housed many of the Central Valley's largest lease and sales transactions in the first quarter of 2024.

-30-

About Intercontinental Real Estate Corporation
Intercontinental Real Estate Corporation is an SEC Registered Investment Adviser* with decades long experience in real estate investment, finance, development, construction management and asset management. Since 1959, Intercontinental and its affiliates have managed, developed, or owned collectively over $18.5 billion in real estate property. As of March 31, 2024, Intercontinental manages a real estate portfolio of approximately $13 billion for its clients. Intercontinental investment strategies actively seek opportunities to invest in both Core and Core-Plus properties, as well as in Value-Add operating properties and development projects. For more information on Intercontinental please visit http://www.intercontinental.net

*Registration with the SEC does not imply a certain level of skill or training

About Kennedy Wilson

Kennedy Wilson is a leading global real estate investment company. The company owns, operates, and invests in real estate through the balance sheet and through an investment management platform in the United States, United Kingdom, and Ireland. Kennedy Wilson primarily focuses on multifamily properties as well as industrial and debt investments in the investment management business. For more information on Kennedy Wilson, please visit: kennedywilson.com