*Courtesy of Refrigerated & Frozen Foods (Source Article)
December 22, 2020
Dedeaux Properties has sold a 290,368-square-foot cold storage and food processing portfolio to a global real estate services company for an undisclosed price. The portfolio, which is made up of four central Los Angeles-area assets ranging in size from 38,000 to 111,000 square feet, were part of a larger industrial portfolio acquired by the Dedeaux-led joint venture in 2016. Each property was 100% leased at closing.
The portfolio consists of food-oriented assets designed for processing, cold storage, packaging and delivery of meal prep kits, as well as ready-to-serve meal deliveries.
“The assets are all located in what is arguably the ground zero location for food processing and distribution facilities in Los Angeles, one of the strongest submarkets of its kind in the U.S.,” said Dedeaux Principal Brett Dedeaux. “During our hold period, these assets more than exceeded our business plan and with a huge supply/demand imbalance for large scale food processing and cold storage facilities, it was a good to time sell. The portfolio’s location combined with the resiliency and strength of the industrial real estate segment, particularly for last mile cold storage, provide the buyer with excellent potential for very attractive risk-adjusted returns going forward,” he added.
“Central Los Angeles’s industrial market boasts extraordinarily strong market fundamentals with 72 consecutive quarters of sub-3% vacancy, and a current vacancy rate of less than 1% for similar food processing and cold storage facilities,” added Bret Hardy of Newmark Capital Markets, which marketed the portfolio on behalf of Dedeaux Properties and their institutional partner.
About Dedeaux Properties
Los Angeles-based Dedeaux Properties focuses on the investment and development of logistics-oriented properties and is affiliated with family controlled DART Warehouse Corporation, a national full-service logistics provider founded in 1936. In addition to a portfolio of approximately six million square feet of industrial space, Dedeaux Properties has an active pipeline of more than two million square feet of industrial properties including warehouse/distribution, truck terminals, trailer yards, and cold storage facilities.