Dedeaux Properties, on behalf of one of its institutional joint venture partnerships, recently sold a 64,595-square-foot cold storage facility in San Jose, California to a private investment group.  
 
Located on a 2.9-acre site, the facility is fully leased to Dairyland Produce LLC, a subsidiary of The Chef’s Warehouse. Built in 1980, and renovated in 2015 and 2022, the facility features a 24-foot clear height, eight dock high doors, and 96 parking stalls.  
 
“Cold storage facilities are unique as they require specialized and expensive equipment designed for specific users,” said Brett Dedeaux, CEO of Dedeaux Properties. “These costs create both financial and logistical hurdles for many industrial developers so, while the tenant pool is relatively small compared to other industrial users, the supply of quality product is even smaller thus driving demand. During our hold period, these assets more than exceeded our business plan. With a huge supply/demand imbalance for large scale food processing and cold storage facilities, it was a good to time sell.”  
 
Despite having one of the largest industrial bases in the United States, California has a significant shortage of cold storage product. According to CBRE research, California has the second lowest cold storage supply rate per capita of any state in the country. Over the last 10 years, the Silicon Valley has had a 16% average annual rent growth for industrial property with an average vacancy of 2.8%.
 
 
About Dedeaux Properties 
 Los Angeles-based Dedeaux Properties, LLC focuses on the investment and development of logistics-oriented properties. A known innovator and leader in the IOS (Industrial Outdoor Storage) sector of logistics properties, Dedeaux Properties has an active development pipeline of more than two million square feet of industrial logistics properties including distribution, transloading, truck terminals and trailer yards and maintains a portfolio of over 14 million square feet.