DRA Advisors, Rising Realty Buy Industrial Portfolio

DRA Advisors and Rising Realty Partners have purchased an industrial portfolio totaling 531,308 square feet in Tracy and Stockton, Calif. JLL Capital Markets brokered the sale of the six-building collection, working on behalf of the seller and procuring the buyers.

Upon closing, the portfolio was 98 percent leased to 14 tenants. Southwest Traders Inc., Allen Distribution and Altium Packaging LP each occupy single-tenant buildings, which comprise approximately 85 percent of the combined assets’ rentable square footage.

The portfolio comprises single- and multi-tenant NNN warehouses and distribution buildings spread on 40.9 acres. The properties feature 14- to 26-foot clear heights, 107 dock-high and 39 grade-level doors, concrete tilt-up construction and ample auto parking.

Managing Director Ryan Sitov and Senior Managing Director Mark Detmer led JLL’s Capital Markets Investment Sales and Advisory team, while Managing Directors Tim Mustin and John Fondale, along with Associate Courtney Cranston, led the leasing team.

Last year, an affiliate of DRA Advisors purchased a 1.3 million-square-foot industrial portfolio in the Philadelphia area. Wharton Industrial and Walton Street Capital sold the 37-asset collection for $194.5 million.

Central Valley’s industrial demand

Located in the Central Valley’s Stockton and Tracy submarkets, the portfolio provides easy access to San Francisco, San Jose, Calif., and Sacramento, Calif., through interstates 205, 580 and 5.

The Central Valley industrial market remains attractive to investors, even though the area’s transaction volume dropped by 23.5 percent year-over-year as of the fourth quarter of 2023. According to a recent JLL report, new construction starts are limited due to escalating interest rates, tight lending conditions and stabilizing tenant demand. However, the same report forecasts that the steady growth in the e-commerce sector will most likely sustain the market’s retailer and distribution tenant demand.