Dalfen America Corp. (DAC), recently announced the acquisition of a five building, 1.25 million square-foot, logistics portfolio in Sparks.
Dalfen America Corp. (DAC), recently announced the acquisition of a five building, 1.25 million square-foot, logistics portfolio in Sparks.
Kidder Mathews industrial brokers J. Michael Hoeck, SIOR, Michael Nevis, SIOR, CCIM, Dave Simonsen, SIOR, CCIM, and Steve Kucera, CCIM represented the seller as the local leasing and market experts, along with Holliday Fenoglio Fowler’s (HFF) Anthony Brent, Ryan Martin and Scott Pertel, who represented the seller in this transaction.
The Reno Distribution Portfolio is currently 94 percent occupied with a mix of tenants who are primarily focused on third-party logistics and next day delivery. OHL (Ozburn-Hessey Logistics), one of the largest logistics operators in the World, uses the properties as one of its key west-coast distribution hubs through which it services clients including Apple and Red Bull.
“Dalfen has planned significant capital upgrades and improvements (to the location),” company officials said in an email with NNBW.
Dalfen is a leading industrial estate investment manager and hands-on real estate operator.
Dalfen’s interest in the area was a result of Nevada’s location and competitive wages.
Reno has become a vital West Coast location for companies focused on e-commerce and distribution. Ideally located in the geographic epicenter of the Western United States and a mere three-hour drive from San Francisco, Reno offers direct access to key transportation routes including I-80 and Highway 395.
Nevada also offers a competitive wage advantage to California, which has resulted in extensive tenant migration into the Reno market. Dalfen noted companies like Tesla and its $5 billion Gigafactory as part of this tenant migration. Reno is also a key market for e-commerce giants like Amazon, who recently completed its second distribution center facility in the area.
“This acquisition embodies our e-commerce investment strategy of buying quality assets in highly desirable infill locations along transportation corridors. The fact that the properties are located next to one of UPS’s mission critical west coast ground shipping hubs, was a key factor in our decision to purchase the portfolio,” President Sean Dalfen said in a press release.
“Given the close proximity to California, the deregulated trucking industry, and the increased demand for next day fulfillment, Reno has become a gateway hub for many of the major West Coast markets. We firmly believe in the explosive growth being seen in the e-commerce industry, and this portfolio strengthens our position to meet rising demand,” Dalfen said.
Dalfen plans to continue increasing their footprint in Nevada, specifically in the Las Vegas area.
DAC currently owns and manages millions of square feet of premier commercial properties in the Unites States and in Canada through its Canadian counterpart, Dalfen’s Limited.
The National Real Estate Investor recently named DAC 2016 Top Real Estate Investor Operator.
Dalfen America has retained Kidder Mathews as the listing brokerage and property manager of their Sparks portfolio.
For more information, visit www.dalfen.com.
