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TRACY, CA-AMB Property Corp. of San Francisco has sold a net-leased 657,600-square-foot distribution facility here to US Industrial REIT III, an affiliate of San Antonio, TX-based USAA Real Estate Co. Home Depot occupies the new building on a 15-year lease.

Completed in December 2008, the Home Depot “Rapid Deployment Center” is located adjacent to Interstate 205 in the 1400 block of E. Pescadero Avenue. The facility is part of the company’s 2008-2009 conversion from de-centralized to regional distribution. It will service approximately 100 stores in Northern California and the Pacific Northwest.

The purchase price was not revealed by the parties involved and was not otherwise immediately available, though one local source tells GlobeSt.com he heard the cap rate on the transaction was 7.8%. AMB says the year-to-date capitalization rate for its asset sales is approximately 8.5%.

The listing broker was the Sacramento-based Palmer Team, which declined comment. In October, Palmer sold a 450,000-square-foot, single-tenant net-leased distribution facility in nearby Stockton for $53 per square foot.

The US Industrial REIT III portfolio consists of large scale bulk industrial properties across the continental United States. During its first quarter conference call in April, AMB Property Corp. said it had $220 million worth of assets under contract for sale or scheduled for contribution in 2009.

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