LA MIRADA, CA—Dunkel Brothers Machinery Moving Inc. has purchased a 327,089-square-foot facility in La Mirada for $21.9-million from Heitman, a Chicago-based investor and one of the major players in the self-storage market. The California Department of Transportation purchased the Dunkel Brothers' former facility, also located in La Mirada, to make space to widen the I-5 freeway. Dunkel Brothers are using the proceeds from the transaction to purchase this building and for any renovations it performs.

Led by Colliers International senior executive VP Clyde Stauff and SVP Chuck Wilson, the search for a replacement facility took two years. “They had to relocate, and their motivation was greater because they were getting closer to the deadline for Caltrans to acquire the site and start demolishing the building,” Stauff tells GlobeSt.com. Stauff would not release information about the amount that Dunkel Brothers received for the former property.

Heitman had planned to demolish the property and rebuild a larger—278,000-square-foot—more modern facility; however, Dunkel Brothers was interested in purchasing the current property, making it an ideal situation for both parties involved. “The property was not on the market for sale because Heitman wanted to redevelop it, and they already had design approval and building plans. We were able to get them to change their mind because we were able to make an offer for the building rather than just a land sale,” says Stauff.

Dunkel Brothers was attracted to the property because of its large size and land parcel, and because it was in the right geographic location. According to Stauff, the manufacturer was also able to buy the building at a reduced price because for most users, the building would not work,” Stauff notes. “For Dunkel, it worked because they didn't need a high clearance and because the property had a lot of yard area for their trucks and their equipment. Dunkel will rehabilitate the existing building.” He did not have information on the amount of capital the company plans to invest.