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$36M Buys Net-Leased 440,000-SF Warehouse

LATHROP, CA-A JV of First Industrial and CalSTRS sells a distribution center here that is net leased to JC Penney through 2023.

By Brian K. Miller | Updated on May 15, 2008

LATHROP, CA-A 440,538-sf single-tenant distribution center here has changed hands for $36.1 million, according to industry sources. An undisclosed client of UBS Global Real Estate acquired the 10-year-old development from FR/CAL Beta Northwest, LLC, a joint venture between First Industrial and CalSTRS.

Located near Interstate 5 within Crossroads Commerce Center, the warehouse was built in 1998 and substantially renovated for JC Penney in 2007. The building, 700 D’Arcy Parkway, has 32-foot clear heights and approximately 9,000 sf built out for office use. The 28-acre property includes eight acres of yard area for trailer parking.

JC Penney is currently paying a net rent on the warehouse of $4.23 per sf per year and another $1.19 per sf per year for the trailer parking lot, according to an industry source. The non-cancelable lease runs through 2023 ad includes 6% compounding escalations every three years. JC Penney also is paying a 2% annual management fee.

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