In what is being hailed as the highest price-per-square-foot sale for a big-box property in the Inland Empire so far this year, TH Real Estate, an affiliate of Nuveen (the investment arm of TIAA), has sold a 468,682-square-foot industrial warehouse at 9050 Hermosa Avenue in Rancho Cucamonga, California, to Deutsche Wealth Services for $68.95 million or $147.11 per square foot, according to a release from a representative of Cushman & Wakefield (C&W).
The release says the property was built in 2004 and is a freestanding class-A building on 20.17 acres of land in the heart of the Inland Empire West. According to the source, the warehouse features cross-dock loading, fully secured concrete truck courts, gate-controlled drive-around access, an ESFR sprinkler system, 104 dock-high and four ground-level loading doors, and heavy power. Ingram Micro, a Fortune 500 company, occupies the space fully.
The statement also says Jeffrey Cole, Jeff Chiate, Mike Adey, and Ed Hernandez from C&W’s Capital Markets Group brokered the transaction, with C&W’s Chuck Belden and Phil Lombardo and JLL’s Mike McCrary and Peter McWilliams serving as market advisors.
Cole, who recently became vice chair at C&W, is quoted in the release as saying, “This offering presented an unrivalled opportunity to invest in the Inland Empire West, the top industrial submarket in the nation. 9050 Hermosa offers an exceptional core location near the intersection of I-10 and I-15 and just five minutes north of the Ontario International Airport.”
Jeff Chiate, executive managing director and head of the West region for C&W’s National Industrial Advisory Group, says in the release that the Inland Empire West’s market activity accounts for 21 percent of the total large transaction volume in the nation. “With record-low vacancy of 2.1 percent, asking rents have risen 16 percent in the past twelve months and 23 percent since year-end 2016.”
Chiate adds that 9050 Hermosa Avenue “will benefit from the explosive long-term growth of e-commerce and its impact on the Inland Empire market, with e-commerce sales projected to surpass $700 billion by 2022.”