MODESTO, CA-Indianapolis-based Duke Realty has closed on its purchase of 1000 Oates Court, a 726,299-square-foot warehouse distribution building here in Modesto, CA. The building was purchase from HRC Modesto LLC.
Kevin Ahaesy, Jason Ovadia and Bob Taylor of Jones Lang LaSalle handled the transaction, working with Chris Burns, AVP of acquisitions for the Western Region of Duke Realty. And while no further terms of the deal could be disclosed, Burns points out that “Northern California’s Central Valley continues to attract strong credit tenants looking for class A bulk distribution facilities and remains a key target for our Western portfolio.
1000 Oates Court has been occupied solely by Conagra Foods Inc. since opening in the early 2000s It was built to house the main West Coast distribution hub of the giant packaged foods company and is currently leased through 2018.
The building is situated south of the city of Modesto close to Highway 99 (Golden State Highway) and is also served by rail.
This is the second major purchase transaction completed by Duke in Northern California’s Central Valley during the fourth quarter. In October, Duke purchased a 552,450-square-foot industrial warehouse building at 600 Spreckels Dr. in Manteca. That building is currently leased by Delicato Wines.
“The Central Valley is the major distribution hub for Silicon Valley and San Francisco and the ongoing economic expansion within those key areas of the Northern California economy makes class A properties such as 1000 Oates Court very attractive to knowledgeable buyers like Duke Realty,” Ahaesy says.