Dedeaux Properties Expands Portfolio of California Logistics Facilities
Dedeaux has signed a Fortune 100 logistics company to a long-term lease for a 24/7 fully secured truck storage facility at 20825 Currier Road in the City of Industry. Under the terms of the lease Dedeaux designed and constructed the facility to meet the specific needs of the company's ground system's platform. Mitch Ashwill at Ashwill Associates represented Dedeaux in the transaction.
In a separate transaction, Dedeaux also has signed Central Transport to a five-year lease extension and expansion at 550 Alameda Street in Compton. Central Transport, a division of Crown Castle and one of the fastest growing long-haul LTL (less-than-truckload)
Most recently, Dedeaux, the leading Southern California industrial investor and developer completed a 40,040-square-
Dedeaux also is planning to break ground on a 101-door cross dock facility with 144 trailer parking doors in Rancho Cucamonga after acquiring an 11.47-acre industrial site at 8822 Etiwanda Avenue. Construction is scheduled to commence first quarter of 2018 with negotiations pending for the facility.
Dedeaux Properties also acquired a three-acre site for trailer parking in Compton and a 71-door transportation property on 9.9 acres in Livermore earlier this year leased to Roadrunner Transportation Systems. The Livermore transaction is part of Dedeaux's recent expansion into the Northern California industrial market.
"Consumers want product overnight, and businesses need just-in-time delivery. Coupled with renewed global economic growth, this means demand for strategically located transportation facilities with the proper amenities is robust," explains Alex Filler, Director of Finance & Acquisitions at Dedeaux Properties. "Yet as Southern California adds to its population, building restrictions continuously tighten. Truck facilities are increasingly vital, but far more difficult to entitle where needed."
The U.S. trucking industry has been rapidly expanding, noted Filler. In August an index of truck tonnage spiked to 147.9, up nearly 50% from the recessionary low in 2009, as reported by the U.S. Bureau of Transportation Statistics. Not surprisingly, Los Angeles-market truck-terminal rents are also rising, and are up 25% in the last year. More than three-fifths of imported cargo containers leaving the Los Angeles-Long Beach harbors are offloaded onto trucks, and the equivalent of 10 million 20-feet container units are expected by 2020.
"The truck facility segment of the California market is an essential part of modern logistics," observed Matt Evans, Chief Investment Officer. "We expect transportation facilities to be an excellent investment class for the foreseeable future."
About Dedeaux Properties
Los Angeles-based Dedeaux Properties, LLC (http://www.dedeauxproperties.com), and its affiliated Dart Entities logistics platform, has a successful history of more than 50 years in the development, acquisition and management of industrial properties located primarily in California and the Greater Chicago area. With a portfolio of more than six million square feet of distribution, transportation and refrigerated industrial space, the firm has a current development and acquisition pipeline exceeding two million square feet.
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