Westcore Enters North Carolina Industrial Market

Union Cross Industrial Center. Image courtesy of Cushman & Wakefield

Westcore has entered the North Carolina market with the acquisition of a two-building industrial portfolio in Winston-Salem.

The firm acquired Union Cross Industrial Center for $36.9 million from Front Street Capital, which developed the property in 2019. Cushman & Wakefield represented the seller, while Westcore represented itself in the deal.

The Class A industrial portfolio includes a 140,000-square-foot building and a 200,000-square-foot building. The two Class A warehouses were developed with 32-foot clear heights, trailer parking, concrete tilt-wall construction, ESFR sprinkler systems, LED lighting and truck courts between 140 feet and 180 feet. The 200,000-square-foot building also features a cross-dock configuration.

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The portfolio is fully leased as distribution company Bunzl occupies the entirety of the larger property at 4991 Millennium Drive, while another distribution company SouthernCarlson completely occupies the 4980 Millennium Drive building.

The properties are located in the Southeast Forsyth submarket of Winston-Salem, N.C., giving tenants easy access to Interstates 40, 74 and 285, while also being approximately 17 miles away from Piedmont Triad International Airport.

According to Westcore, the 200,000-square-foot building that Bunzl occupies can be expanded by 110,000 square feet. Hack Adams, managing director at Westcore, told Commercial Property Executive that the firm anticipates expanding the Bunzl building during its ownership, but that the expansion will likely be determined by Bunzl.

North Carolina’s industrial market

The acquisition of Union Cross Industrial Center marks Westcore’s first property in the North Carolina market. The firm acquires industrial assets in key infill markets across the U.S., but a large portion of its portfolio is located in western states.

Last month, Westcore broke ground on a two-building business park totaling 906,125 square feet in Glendale, Ariz., along with its joint venture partner Ryan Cos. The firm has also been investing in Texas markets as it broke ground on a 301,120-square-foot warehouse project in Rockwall, Texas, in the Dallas area.

Adams said in prepared remarks that most of Westcore’s recent investment activity has been focused on western states and Texas, but the firm recognized the strength of the Carolinas market.

”We like the underlying fundamentals of North Carolina as a whole, as well as the Triad market, which is experiencing both healthy industrial and population growth,” Adams told CPE.