Dedeaux Sells Cold Storage Asset for $142M in San Jose
A 64,595 square-foot cold storage facility in San Jose, CA, has been sold by Dedeaux Properties, on behalf of one of its institutional joint venture partnerships, to a private investment group.
The disposition, which went for a total of $141.5 million, represents the execution and close-out of this portfolio investment.
Rebecca Perlmutter, Darla Longo, and Barbara Perrier of CBRE represented Dedeaux on the transaction. The unnamed buyer was represented by Melinda Bacharach of MLB Real Estate Services.
The 2.9-acre site at 1130-1170 Olinder Court is fully leased to Dairyland Produce LLC, a subsidiary of The Chef’s Warehouse. Dedeaux acquired the asset in 2016 as part of a five-property cold storage portfolio, ranging in size from 43,990 to 111,000 square feet.
Three of those assets were in central Los Angeles, and two were in the San Francisco Bay Area.
The Olinder site was built in 1980 and renovated in 2015 and 2022. It features a 24-foot clear height, eight dock-high doors, and 96 parking stalls.
This represented one of the first institutional partnerships for Dedeaux Properties, which has operated in the logistics sector for nearly eight decades.
“With a shared vision of the cold storage space in California, our partner sought to leverage our industry-leading expertise and compelling fundamentals in the sector,” Brett Dedeaux, CEO of Dedeaux Properties, told GlobeSt.com.
“We were able to deliver very attractive risk-adjusted returns on the acquisition and eventual disposition of the assets in the portfolio. We look forward to working together with them and other investors on our deep pipeline of opportunities in the California industrial and logistics marketplace.”
Dedeaux Properties specializes in the investment and development of logistics-oriented real estate, mainly in Southern California. It has sourced, entitled and delivered turnkey food processing and cold storage facilities in Southern California, namely in the cities of Vernon and Commerce.
California has a significant shortage of cold storage assets, despite having one of the largest industrial bases in the US.
According to CBRE research, California has the second-lowest cold storage supply rate per capita of any state in the country. During the past decade, Silicon Valley has enjoyed an average annual rent growth of 16% for industrial properties, with an average vacancy rate of 2.8%.
Source: GlobeSt/ALM