Acquired in May 2024 through Kennedy Wilson’s industrial platform as a Core+ investment, this asset produces a strong cash-on-cash return that benefits from favorable market fundamentals, 12 years of remaining lease term, a credit anchor tenant, and a high-specification buildout.
Kennedy Wilson drew upon deep internal submarket knowledge – anchored by the team's ownership of the three adjacent industrial buildings (877,648 SF) – to identify a unique misalignment in market pricing. This expertise allowed Kennedy Wilson to navigate three separate broker processes to successfully acquire SCC (655,976 SF) at an attractive, risk-adjusted basis.
During the ownership period, Kennedy Wilson oversaw the highly specialized renovation from a dry warehouse to a 370,000 square foot state-of-the-art cold storage facility for a national food distribution tenant. Other major improvements to the building included a substantial power increase and the installation of two solar arrays. This tenant invested a significant amount of capital into its buildout and signed a 20-year lease, ensuring stable cash flow backed by strong credit for the duration of the hold period.
SCC is positioned at the nexus of critical transportation nodes: I-5 (Busiest U.S. roadway), Hwy-99 (critical inland CA roadway), and Hwy-4 (connecting I-5 and Hwy-99), Port of Stockton, Stockton Airport, and within two hours drive of San Francisco International, Oakland International, San Jose International, and the Port of Oakland.
