OHL-Anchored Reno Distribution Portfolio Trades Hands
By Justin Sumner – Costar
November 8, 2016
Dalfen America Corp. (DAC) has acquired the five-building industrial logistics portfolio located at 350-450 Lillard Dr. and 45-55 Vista Blvd. in Reno, NV for $55.3 million, or about $44 per square foot, from Global Logistics Properties (GLP US).
Totaling 1.25 million square feet, the Reno Distribution Portfolio is currently 94 percent occupied to a mix of third-party logistics tenants. Ozburn-Hessey Logistics (OHL), one of the largest logistics operators in the world, utilizes space there as one of its key west coast distribution hubs, serving the next-day delivery needs of clients including Apple and Red Bull.
The five buildings, encompassing distribution space in Lillard Business Center and Vista Industrial Park in the Sparks Industrial submarket of Washoe County, feature proximity to I-80, the second longest interstate highway connecting the East and West coasts, as well as the Reno-Tahoe International Airport. The properties offer a total of 154 dock-height and seven grade-level doors, clear heights ranging from 21 to 27 feet, up to 1,200-amp heavy power, truck courts, heavy-load floors, rail access, fenced lots, skylights, bus lines and some cooler space.
“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,” said Sean Dalfen, president of DAC. “Given the close proximity to California, the de-regulated trucking industry, and the increased demand for next-day fulfillment, Reno has become a gateway hub for many of the major west coast markets.”
Reno has increasingly become a mission-critical west coast location for e-commerce and distribution needs, given its location in the geographic epicenter of the Western U.S., competitive wage and cost of living to nearby California, and its proximity to major hubs like San Francisco, transportation routes and ports. Tenants migrating to Reno include Tesla’s in-development, $5 billion Gigafactory, Urban Outfitters’ internet fulfillment center and Amazon, which recently completed its second distribution center in the area.
Rusty Tamlyn, Anthony Brent, Scott Pertel and Ryan Martin with HFF brokered the portfolio sale on behalf of the sellers. The buyer handled the deal in-house.