Bisnow Exclusive: Costco Pays $65M For Future Distribution Center

Costco Wholesale Corp has just paid $65.6M in an all-cash deal to acquire a 527.5k SF building in Jurupa Valley in Riverside County that it plans to eventually use as a regional distribution center. Bisnow caught up with Colliers SVP Mark Zorn, who repped the retail giant, to discuss the deal.

The building at 11280 Riverside Dr is occupied by Quik Set, a manufacturer and distributor of quick-setting concrete and other construction materials, which has 19 months remaining on its lease with a five-year option. But Mark tells us the property is a strategic move for the retailer, which has an outlet, as well as administrative offices, nearby.

Mark says Costco just doesn't need the space right now, and views the property as a strong leased investment that will create cash flow. And when the company does need the facility, it'll already be in place.

The seller was TIAA-CREF, the investment arm of the Teachers Insurance and Annuity Association.

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Related Topics: Costco , Mark Zorn , TIAA-CREF
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