Duke Realty Corp. has purchased an industrial building in the City of Industry for $51.3 million.

Troy CSL Lighting Inc. sold the property at 14500-14508 Nelson Ave. in a sale leaseback agreement. The company has a five-year lease, according to CoStar Group Inc.

Sale leasebacks, in which one party sells and leases back the same property, are becoming increasingly popular.

For the seller, proceeds from the sale can represent a capital infusion for the business that can be used to pay down debt or for expansion. The buyer, meanwhile, gets to own real estate with a tenant paying rent right away.

In many cases, these leases are triple net leases, meaning the tenant may handle everything from basic maintenance to property taxes. This makes for a relatively safe investment for the buyer, who gets guaranteed income without doing much work.
The City of Industry property has a building with 202,541 square feet, 32 loading docks and 32-foot clearance heights.

Ledo Capital Group’s Anthony Brent represented the buyer and the seller.
Duke Realty, which is based in Indiana and specializes in industrial real estate, has been active in L.A. in the past few years.

In December, the company acquired a 94,140-square-foot building on 8.6 acres at 20915 S. Wilmington Ave. in Carson for $25.8 million. The property was also acquired through a sale leaseback agreement with Univar Solutions USA Inc.

“For nearly a decade, we have made strategic moves in Southern California to accommodate customers’ ever-increasing need for modern and conveniently located industrial and logistics facilities,” Nancy Shultz, senior vice president of the Southern California market for Duke Realty, said in a statement.

“We now have 16.1 million square feet of in-service or under-construction space in Southern California and a steady, measured development pipeline with a commitment to sustainable development practices,” she added.

Duke Realty largely develops its own projects but also does some redevelopment.

Some of its current projects include a roughly 529,000-square-foot development at 13131 Los Angeles St. in Irwindale. Once completed, the project will have more than $2 million worth of smart building features, a large truck yard and trailer storage.

The company is also working on a 291,000-square-foot facility at 13344 S. Main St. in South L.A. that has been leased to a beverage distributor.

In addition, Duke Realty is building a 146,068-square-foot logistics facility at 13215 Cambridge St. in Santa Fe Springs.

And the company exploring more projects in Southern California moving forward.

“At Duke Realty, we specialize in modern facilities designed for logistical efficiency and when researching potential acquisitions, convenient locations and infill acquisition opportunities remain a priority,” Michael Chukwueke, vice president of acquisitions and development for Duke Realty’s Southern California market, said in a statement. 

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