Inland Empire industrial buildings continue to be highly sought after by investors. A partnership between Hartford, Connecticut-based Penwood Select Industrial Partners III L.P., and Newport Beach, California–based Shaw Development Partners, LLC has sold a newly completed 154,451-square-foot industrial warehouse building at 2705 Lexington Avenue in San Bernardino, California, for $18.23 million, according to a statement from a representative of Voit Real Estate Services.
The buyer is described in the statement as a global consumer products company that plans to use the property for its own operational and distribution needs. Frank Geraci, Juan Gutierrez, and Adam Geiger of Voit’s Inland Empire office represented the seller, according to the release, and the sale closed escrow in less than 60 days.
The warehouse features 2,200 square feet of office space, an ESFR fire sprinkler system, a secured fully-concrete truck court, and electrical service of 1,200 amps.
Voit represented the seller in acquiring the property in 2015, the source says, adding that at that time, it was a vacant 197,000 square-foot industrial manufacturing building on 7.59 acres, together with an adjacent 7.12-acre parcel of vacant land on which the subject building was entitled and developed.
Geraci is quoted in the release as saying, “The opportunity in that original acquisition was clear — secure a long-term lease for the existing building and elevate the vacant land to its highest and best use by bringing an in-demand product to market.” He adds that Shaw and Penwood developed the current building from the ground up.
Geraci is also quoted as saying, “The speed of this transaction speaks to the deeper health of the local industrial market. As demand continues to outpace supply, we will continue to see rapid transaction velocity that will support ongoing growth in the market.” He adds that industrial vacancy in this market is at a record low and little or no inventory is for sale and that the property, built on spec, targets a broad demographic of users with a wide variety of needs.
As SoCal Real Estate reported earlier this week, global real estate investment manager Invesco Real Estate Cushman acquired Meridian Distribution Center II in Riverside, California, from Sun Life Assurance Company of Canada through its advisor Bentall Kennedy, for a reported $104 per square foot, which equates to about $52 million, according to a release from a representative of Cushman & Wakefield.