Dedeaux Properties Buys LA Facility for $190M

The property serves as 99 Cents Only Stores’ headquarters. Image courtesy of CommercialEdge

Dart Entities, a 3PL provider connected to Dedeaux Properties, has acquired an 882,000-square-foot distribution center in Commerce, Calif., for $190 million. The seller was Ares Management, the owner of 99 Cents Only Stores, CommercialEdge data shows. Following the sale-leaseback, the retailer chain will continue to use the Class B property as headquarters.

The deal marks one of the largest industrial transactions in Los Angeles County this year so far. Lee & Associates President Jack Cline, with the assistance of Eastdil Secured, arranged the sale.

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The one-story industrial building, located at 4000 Union Pacific Ave. and 4040 Noakes Ave., features 126 dock-high doors, sky lights, a 110-foot truck court and 600 vehicle parking spots, the same source shows. The approximately 24-acre property is adjacent to the Hobart Intermodal Railyard and close to interstates 5 and 710. The location is 5 miles from downtown Los Angeles, 23 miles from the Port of Los Angeles and within 24 miles of Los Angeles International Airport.

The asset is part of an industrial campus where Dedeaux Properties manages more than 2 million square feet of logistics space. President & Managing Member Brett Dedeaux said, in a prepared statement, that the property has been on the company’s radar for some time and it might be redeveloped into a distribution center that will include two adjacent buildings totaling more than 400,000 square feet.

Los Angeles, a pricey market

Los Angeles’ industrial sales volume totaled $2.4 billion year-to-date as of August, with assets changing hands for $346 per square foot, the highest price in the U.S. according to a recent CommercialEdge report. In terms of total sales, the metro was second to the Inland Empire ($3.3 billion) and outperformed the Bay Area ($1.98 billion).

In one of the priciest deals, Rexford Industrial Realty Inc. paid $210 million for a 595,304-square-foot industrial property in Los Angeles County. The asset had previously changed hands in 2015 for $62.3 million.