Westcore Buys Nevada Industrial Asset for $83M

November 14, 2023

Washington Capital Management sold the fully occupied distribution center.

Completed in 2008, the Class A industrial asset comprises 200 trailer stalls on a 34-acre site. Image courtesy of Westcore Properties

The distribution center also serves the nearby Tesla Gigafactory. Image courtesy of Westcore Properties

Westcore Properties has purchased a 632,130-square-foot distribution center in the Tahoe-Reno Industrial Center in McCarran, Nev., for $82.5 million. Washington Capital Management sold the LEED Gold-certified asset, according to CommercialEdge data.

Completed in 2008, the Class A industrial property comprises 200 trailer stalls on a 34-acre site. The cross-load distribution center features skylights, insulated Low E-glass, premium HVAC units, energy-efficient lighting and ESFR sprinklers.

The tenant roster at the industrial center includes Panasonic, Thrive Market and Tesla, CommercialEdge data shows. At the time of the sale, the property was 100 percent leased.

The property is at 700 Milan Drive, within an Opportunity Zone. Tenants are able to access the wider metropolitan area via Interstate 80, as well as the nearby Union Pacific Intermodal Hub and Reno Tahoe International Airport.

Westcore Properties has recently acquired a 16-building industrial portfolio in California, spread across Livermore, Valencia and Chino. MEPT sold the 3.5 million-square-foot Odyssey Portfolio. This month, the company also obtained $25 million in financing for Rockwall Distribution Center, a 301,120-square-foot industrial building in Rockwall, Texas.

Reno’s industrial market shows significant growth

The Reno industrial market has grown this year with the addition of 6.4 million square feet of new space, according to a recent CBRE report. The construction pipeline features multiple projects totaling over 2.8 million square feet, while around 16.1 million square feet are in different planning stages.

The same report shows that absorption rates have remained elevated, indicating continued demand for more space. Roughly 1.8 million square feet was absorbed in the third quarter, while the year-to-date total clocked in at 3.6 million square feet, as a significant amount of projects were delivered preleased.