Los Angeles, CA – In one of the year’s largest industrial real estate transactions in Los Angeles County, a Dedeaux family-controlled entity acquired an 882,000-square-foot distribution facility in Commerce, CA from the 99 Cents Only Stores in a $190MM sale-leaseback transaction.
The property is located on a ~24-acre lot at 4000 Union Pacific Avenue and 4040 Noakes Avenue, six miles southeast of downtown Los Angeles. It is immediately adjacent to the Hobart Intermodal Railyard, one of the most important transfer facilities of containerized cargo for the Port of Los Angeles, which moves approximately 40 percent of the nation’s containerized freight. The facility is located within a gate-guarded campus, very unique to Central Los Angeles, where Dedeaux controls over 2,000,000 square feet of additional logistics properties.
“Over the years, we kept an eye on this property as a point of expansion for our East Los Angeles complex. This substantially increases our footprint for both our property clients as well as our logistics partners. This acquisition completes a vision my father, Rod Dedeaux, held since the inception of Dart Warehouse Corporation in 1960,” stated Terry Dedeaux, Chairman of the Board at Dart Warehouse Corporation and a partner in Dedeaux Properties.
“This was a generational opportunity for the Dedeaux Family to strategically acquire over one million square feet of land immediately adjacent to its existing holdings, at a strong going-in yield, generating positive cash flow while it determines its long-term redevelopment plan for the site,” added Rishi Thakkar, Dedeaux Properties Director of Investments.
“The Dedeaux family of companies have been investing and operating in this market for more than 60 years, and this property has been on our radar for a long time,” added Dedeaux Properties President & Managing Member Brett Dedeaux. “We are looking at numerous alternatives including a possible redevelopment of the site that would include two of our adjacent buildings totaling more than 400,000 square feet to create a state-of-the-art distribution campus with excess trailer parking, secured access and privatized streets, The short-term sale/leaseback with the 99 Cents Only Stores gives us the time necessary to evaluate all our options.”
Jack Cline of Lee & Associates, in conjunction with Eastdil Secured, facilitated the sale.
About Dart Warehouse Corporation
Dart Warehouse Corporation is a closely held national distribution and fulfillment 3PL provider. Founded in 1938 by legendary University of Southern California baseball coach Rod Dedeaux, the Dart Entities built their team with a framework of flexibility; changing with the times to offer variations of supply chain and logistics solutions for its partners. Dart Warehouse Corporation is based in Los Angeles, CA.
About Dedeaux Properties
Los Angeles-based Dedeaux Properties, LLC focuses on the investment and development of logistics-oriented properties. A known innovator and leader in the IOS (Industrial Outdoor Storage) sector of logistics properties, Dedeaux Properties has an active pipeline of more than two million square feet of industrial properties including distribution, transloading, truck terminals and trailer yards.
