DCT Industrial Trust Inc. has acquired a 155,900-square foot facility in DuPage County for $3.4 million.
The building is currently 35 percent leased and the sale reflected a $21.80 per-square-foot price. DCT Industrial expects to earn a cash yield of approximately 9.6 percent when stabilized. This acquisition brings DCT Industrial’s Chicago consolidated portfolio to 3.6 million square feet and 87.6 percent occupied.
The purchase was part of a two other transactions that combined to total 278,200 square feet. The other buildings are located in Southern California, Orlando.
DCT Industrial acquired a 72,300 square foot building in Whittier, CA, the Mid-Counties submarket of Los Angeles County. The building was purchased for $4.8 million or $65.81 per square foot. The Mid-Counties submarket is an attractive location with strong demand and limited vacancy. The distribution building is 100 percent leased to a single tenant and is expected to generate a cash yield of 8.3 percent in the first year. This acquisition brings DCT Industrial’s Southern California consolidated portfolio to 3.8 million square feet and 94.2 percent occupied.
Additionally, DCT Industrial acquired a Class-A distribution facility in Orlando, FL. The building totals 50,000 square feet and was acquired for $3.0 million or $60.86 per square foot. The building is located in the Orlando Central Park submarket, which is the core infill market for Orlando with access to major highways, such as the Florida Turnpike. The building is 100 percent leased to a single tenant and was built in 1994. DCT Industrial expects to generate a cash yield of 8.1 percent in the first year. This acquisition brings DCT Industrial’s Orlando consolidated portfolio to 1.4 million square feet and 81.0 percent occupied.
“A key aspect of our investment strategy is to focus on high-quality, well-located assets with an above-average growth profile,” said Phil Hawkins, President and CEO of DCT Industrial. “These three buildings were purchased for an average of 30-35% below replacement cost and will bring value to our customers and our shareholders.”
