New York City-based Blue Owl Capital is in the midst of completing the largest single-property industrial acquisition in the Inland Empire, Calif., warehousing market in more than two years. The asset management company dished out a staggering $219 million for the LEED-certified Watson Logistics Center in Apple Valley, Calif.
The move to acquire the 1.3-million-square-foot warehousing space is part of a larger sale and leaseback agreement with affiliates of Blue Owl Capital for a portfolio that also includes 26 store locations. The deal is scheduled to close within 45 days subject to continued due diligence, final documentation and other customary closing conditions.
Located at 18880 Navajo Road and neighboring another large-scale Wal-Mart distribution facility, the property had previously changed hands in March, when Wells Fargo acquired the asset off an unknown buyer. Spread across a massive 106 acres, Watson Logistics Center had been earmarked by Big Lots for liquidation as the retailer sought to shed underperforming properties across southern California.
Big Lots then used $101 million of the sale proceeds to lease back the distribution center for 20 years.
“We are pleased to have reached a definitive agreement with Blue Owl for the sale and leaseback of our Apple Valley distribution center and the vast majority of our remaining owned stores,” said Bruce Thorn, president and CEO of Big Lots. “As we discussed on our Q1 earnings call, we are highly focused on ensuring we have plenty of liquidity to get through this period of macroeconomic challenges, and monetizing these assets is a significant step forward in ensuring such liquidity. Blue Owl has been a good partner on our other regional distribution centers, which we sold and leased back in 2020, and we look forward to furthering our relationship through this transaction.”
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