Denver-based DCT Industrial Trust Inc. paid $26 million for two distribution facilities totaling 519,990 square feet for $26.0 million located in Ridgefield, N.J. and Chino, Calif.
In New Jersey, DCT Industrial acquired a 330,000 square foot light manufacturing and distribution facility for $17.5 million. The building was acquired in a sale-leaseback for $53 per square foot, or approximately 30 percent to 35 percent below replacement cost.
The building is fully leased to a single tenant and is expected to generate a year-one cash yield of 9.7 percent.
Additionally, DCT Industrial acquired a rail-served, bulk industrial building totaling 189,990 square feet in Chino, Calif. Chino is a submarket of the Inland Empire West and is highly desirable due to its proximity to the ports of Los Angeles and Long Beach.
The building, constructed in 1988, was purchased for $8.5 million, or $44.79 per square foot, which is approximately 30 percent below replacement cost. DCT Industrial plans to create additional value by repositioning the vacant building, purchased from a former user.
