The price points at 99 Cents Only Stores only apply to merchandise sold inside their stores. Its real estate is another story.
The discount retail chain has sold a large distribution facility for $190 million in one of the year’s largest industrial real estate transactions in Los Angeles County. An entity controlled by Dedeaux Properties acquired the 882,000-square-foot property in City of Commerce, Calif. — a 6.5-square-mile town about six miles southeast of Downtown L.A. — in a short-term sale-leaseback deal.
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The property is on about 24 acres at 4000 Union Pacific Avenue and 4040 Noakes Avenue, adjacent to the Hobart Intermodal Railyard and transfer facility for the Port of L.A. Dedeaux also controls more than 2 million square feet of additional logistics properties in Central L.A., and the firm is considering several options at the 99 Cents Only Stores facility, including redevelopment to include two adjacent Dedeaux buildings to make a distribution campus.
“Over the years, we kept an eye on this property as a point of expansion for our East Los Angeles complex,” said Terry Dedeaux, a partner at Dedeaux Properties and chairman of Dedeaux logistics company Dart Warehouse Corporation. “This substantially increases our footprint for both our property clients as well as our logistics partners. This acquisition completes a vision my father, Rod Dedeaux, held since the inception of Dart Warehouse Corporation in 1960.”
Jack Cline of Lee & Associates, in conjunction with Eastdil Secured, facilitated the sale.
Gregory Cornfield can be reached at gcornfield@commercialobserver.com.
