Western Real Estate Business

SEP 2018

Western Real Estate Business magazine covers the multifamily, retail, office, healthcare, industrial and hospitality sectors in the Western United States.

Issue link: https://westernrealestatebusiness.epubxp.com/i/1027244

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Page 73 of 82

www.REBusinessOnline.com Western Real Estate Business • September 2018 • 71 is an outstanding location for quick access to the greater Bay Area and to an exceptional work force." The firm was attracted to this mar- ket because Vacaville offered favor- able conditions for logistics customers — being near interstates 550 and 80 — in a land-constrained area. "Cities become land constrained, but sometimes I say they're 'conve- nient- land constrained, for example… is it convenient for the companies op- erating there to reach them, and for employees to work there,'" Dermody explains. "Sometimes there is a finite amount of private land, but there are plenty of opportunities for good in- vestments." Dermody Properties is also expand- ing along California's Central Val- ley. It acquired a 143,888-square-foot building in Stockton, less than 60 miles southeast of Vacaville, for $10.4 million this past April. The asset for- merly served as a FedEx ground facil- ity. "Dermody Properties has made significant strides at growing their footprint here in the Central Valley," says Jim Martin, senior vice president of Lee & Associates in Stockton, who represented Dermody in the transac- tion. "[They] proved to be the best buyer to bring in...and close on this well-located, quality asset." The firm also purchased and constructed two other projects in the Central Valley. They include a 286,072-square-foot industrial facility in Manteca (Manteca Commerce Cen- ter) and a 622,726-square-foot indus- trial facility in Lathrop (LogistiCenter at Lathrop). Its most recent construction start, however, is in the Pacific Northwest. Dermody broke ground in April on LogistiCenter at Woodinville, a 409,500-square-foot, two-building industrial park east of Seattle. It will feature 92 dock doors, eight grade- level doors, a 32-foot clear height and 489 car parking spaces. Construction is scheduled for completion in the fourth quarter of this year. Though the Seattle market is not new to the firm — Dermody has in- vested in more than 2.5 million square feet of new development and acquisi- tions in the Pacific Northwest in the past four years — its dwindling op- portunities have made this region par- ticularly notable. "LogistiCenter at Woodinville is consistent with our strategy of de- veloping modern logistics building in land-constrained markets," says Douglas A. Kiersey Jr., Dermody's president. "The market fundamentals in Seattle are very attractive." If past behavior is any indicator of future success, Dermody is likely to remain focused on the fundamentals. Spec development for ecommerce and logistics tenants will undoubtedly continue. While no one can predict what the big industrial development trend will be 20 years from now, Der- mody plans to rely on what's been working for nearly six decades. "One of the hallmarks of Dermody is how long we've been in business," he says. "What's important are the people who are in Dermody Proper- ties. A company is only as good as its people, and we are blessed to have such a strong team. We've been doing this through many economic cycles, and we strive to do the best and be the best. We strive to satisfy our cus- tomers all the time. That is the distinc- tion." n Dermody is expanding along California's Central Valley with the $10.4 million acquisition of a 143,888-square-foot building in Stockton this past April. The asset formerly served as a FedEx ground facility. Every time SIORs walk into a room, their reputation precedes them. Experienced, knowledgeable, and focused, SIORs represent the absolute best in commercial real estate. Access the world's most elite network and open the door to game- changing opportunities. SIOR . Your next big win is just four letters away. www.SIOR.com MARK'S GOT THIS.

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