Sales  ·  Industrial

Dedeaux Takes Another SoCal Warehouse Site

L.A.-based firm plans to build an industrial campus

reprints


UPDATED: Dedeaux Properties is expanding again in Southern California’s Inland Empire.

The Los Angeles-based firm has put down $43.7 million for an industrial building with nearly 98,000 square feet over 13.6 acres. The distribution center was owned by an entity named BWP Inc., which is connected to the building user, Barrette Outdoor Living.

SEE ALSO: Fortress Takes Control of Fort Lauderdale Yacht and RV Park in $86M Deal

The property is in Riverside, Calif., at 1151 Palmyrita Avenue at the northeast corner at the intersection with Iowa Avenue. A spokesperson for Dedeaux said the company plans to build an industrial campus on the site, but has not yet started the entitlement process.

Riverside is part of the eastern region of the Inland Empire and has more than 52.4 million square feet of warehouse space, according to Colliers (CIGI)’ third-quarter industrial report released this week. Vacancy ticked up since the past quarter to 1.8 percent, and the average asking rent is at $1.38 per square foot per month. Specifically for industrial buildings that are between 70,000 and 100,000 square feet in the eastern part of the Inland Empire, the asking price is higher at $1.44 per square foot.

Riverside is one of the hottest submarkets in the region. Earlier this year, Northwestern Mutual provided $124 million in acquisition financing for 1.17 million square feet of cold-storage space in Riverside that IDS Real Estate Group acquired for $225 million. Also, Alere Property Group paid $199.3 million for a new warehouse with 709,081 square feet.

Dedeaux has been a leading contributor to the Inland Empire market. In August, the firm sold 205,830 square feet on nearly 10 acres for $41.1 million. The same month, Dedeaux acquired 7.11 acres of land in the Inland Empire for $33.6 million, equal to about $4.7 million per acre, where it plans to develop a truck terminal. The company also closed more than $400 million in transactions in the first half of 2022.

Gregory Cornfield can be reached at gcornfield@commercialobserver.com.

 

CORRECTION: The sales price reported in a previous version of this article was incorrect.