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Dedeaux Properties Sells New Echelon Business Park

City of Industry Appears Ripe for Industrial
July 19, 2018
Commerce, CA-based Dedeaux Properties has sold Echelon Business Park, a newly-built industrial campus in the City of Industry, for $50 million.

The seven-building property, located at 801-821 Echelon Ct., features properties ranging in size from 27,438 square feet to 43,166 square feet each. The buildings offer dock-high and ground-level loading, Early Suppression Fast Response sprinklers, high-speed fiber optic cabling and two-story office space.

Dedeaux Properties was attracted to building in the San Gabriel Valley because it knew demand was there, according to Brett J. Dedeaux, president of Dedeaux Properties.

“I’d say we identified a strong demand from users who desire to purchase in the San Gabriel Valley with limited supply of quality, new product,” he said via email. “After this assessment, we identified this site as a good opportunity to deliver such product as no business park with buildings for sale had been developed for quite some time.”

Offers were already being made even before construction began.

“The buildings were under contract since last year, before the foundation for the project was even laid,” Dennis Sandoval, executive vice president and branch manager in DAUM Commercial, which assisted in the sale, said in a statement. “We eventually received back-up offers on each of the properties and ultimately sold to seven separate buyers, including a mix of distribution and light manufacturing users.”

Dedeaux said he was also “pleased to achieve new high water mark pricing to deliver solid returns for our company as well as help to satisfy a demand in this market.”

DAUM worked closely with Dedeaux Properties over the past year to come up with the ideal strategy for the project and advised the firm to build smaller buildings since most of the new industrial product in the area is more than 100,000 square feet, according to Sandoval.

“These buildings immediately filled a void in the market for modern product suited to smaller distributors and manufacturers, meeting the significant demand for property ownership in the small industrial sector,” Sandoval said in a statement.

Industrial vacancy in the San Gabriel Valley, generally, hovers just above 1.5 percent, according to Sandoval. Smaller, newer, dock-high product vacancies are often less than one percent.

The city’s pro-business government is among the most friendly to developers in the metro, and the city has drafted a comprehensive total development plan covering all currently undeveloped portions of the city, according to CoStar Market Analytics. As a result, the City of Industry favors industrial development.

The City of Industry consists of six submarkets, all with rents growing by more than 10 percent year-over-year in 2017, according to CoStar data.

  For the Record: Dennis Sandoval, Robert Dipre, Bryan Sandoval and Kurt Yacko with DAUM helped negotiate the sale.

Karen Jordan, Los Angeles Market Reporter  CoStar Group   
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