CALIFORNIA, WASHINGTON, FLORIDA, TEXAS AND GEORGIA — First Industrial Realty Trust has acquired an industrial portfolio from ADESA for $82 million.
The transaction covers eight car auction sites totaling more than 800 acres. The locations include four sites in California (Tracy, Otay Mesa, Mira Loma and Sacramento); Fairburn, Ga.; Houston; Auburn, Wash.; and Bradenton, Fla. All of the sites have been acquired except the Fairburn, Ga., location, which is expected to close shortly.
ADESA, a subsidiary of KAR Holdings, will lease back the sites under 20-year lease agreements with 20-year renewal options. First Industrial will provide ADESA $12.5 million for construction of physical improvements on the east half of the Otay Mesa, Calif., site.
According to Grubb & Ellis’ second quarter 2008 industrial report, U.S. vacancy rate climbed to its highest level in 3 years to 8.2 percent. The lowest rate in the country was supply-constrained Los Angeles at 1.9 percent and the highest was property-concentrated Raleigh, N.C., at 16.1 percent.