Newcastle Partners Inc., a San Francisco-based real estate investment and development company, has sold Harley Knox Logistics Center, a 147,000-square-foot, class-A industrial facility located at 17610 Harvill Avenue in Perris, California, for $16.35 million to TA Realty LLC. The property is fully occupied by Hardwoods Specialty Products on a long-term lease.
The buyer represented itself in the transaction, and Cushman & Wakefield, led by Jeff Chiate and Mike Adey, represented the seller.
With construction completed in September 2017, Harley Knox Logistics Center is situated on 8.21 acres and features 104 parking stalls, 26 loading docks, 32-foot clear height, and a 160-foot truck court. Corporate neighbors include Kraft Foods, Amazon, Lowes, Home Depot and a host of other Fortune 500 companies. The facility also offers direct access to the freeway via the Harley Knox Blvd. on/off-ramp and has identity and clear visibility from the 215 Freeway.
Founded in 1926, the building’s tenant, Hardwood Specialty Products, is the premier distributor of hardwood veneers, plywood and solid lumber products, MDF, melamine, particleboard, and specialty products in North America. The company moved into the facility in January 2017 for warehousing, distribution and will-call pick-up uses.
“This project far exceeded our expectations,” says Jackson Smith, partner with Newcastle Partners. “With an irreplaceable freeway-visible location and a high-quality long-term tenant in place, we received more than a dozen offers to purchase the project. We set a new high-water mark in terms of price per square foot in this size category in the Inland Empire.”
Newcastle Partners has developed more than 6 million square feet of industrial product in the Inland Empire region over the past seven years and currently has over 2 million square feet under development or in pre-development stages.
“Institutional capital is looking now more than ever to make an investment in the Inland Empire region as a result of the increased tenant demand based mainly upon e-commerce fulfillment centers,” says Dennis Higgs, managing partner with Newcastle Partners. “The demand has been unprecedented, with mind-boggling land value and rental-rate increases.”