Deal Closed: Gilroy, CA

We are pleased to announce that Westlake closed on an industrial outdoor storage (IOS) acquisition on December 24th: 255 Mayock Road, a ±5-acre infill IOS facility located in Gilroy, California, strategically positioned along the US-101 corridor at the southern edge of Silicon Valley.

After a prior deal with a national transportation services user fell out of contract, we were able to step in as the broker’s first call and secure the property at $7.4 million, below our original underwriting and at an attractive basis of $34 per land square foot. The site includes five buildings totaling 24,466 square feet and is 88% leased.

The property benefits from specialized, fully permitted improvements, including a large equipment and vehicle paint facility, prep areas, and multiple service bays. These unique features significantly expand tenant demand across automotive, heavy equipment, and industrial service users.

We project a 21.6% net IRR and 2.37x equity multiple over a six-year hold, supported by an 8.84% stabilized yield on cost. Gilroy remains one of the most supply constrained industrial submarkets in the South Bay, with vacancy around 3% and growing demand from Silicon Valley users seeking lower occupancy costs while maintaining proximity to major employment and logistics hubs. The property’s M-2 heavy industrial zoning further enhances long term tenant demand.

We would like to sincerely thank our family, friends, and investment partners for their continued trust and support as we continue to scale Westlake’s IOS investment platform.