Airport Distribution Center in Ontario, CA Acquired by Guthrie Development as Company Expands in Inland Empire
- Sep 15, 2014
Airport Distribution Center in the City of Ontario, CA was recently snapped up in a deal that industry insiders estimate at around $20 million. The buyer was Guthrie Development Company which along with a private equity partner acquired the industrial asset from Panattoni Development Company. The seller worked with a team from real estate brokerage firm CBRE during the transaction.
Located at 1500, 1550, and 1590 Milliken Avenue in Ontario, San Bernardino County, the Airport Distribution Center is comprised of three buildings and 30 units totaling 221,171 square feet of space. The Class A-level property was developed back in 2000 and features small dock high, multi-tenant spaces, concrete tilt-up construction, dock-high loading, as well as fire sprinkler and life safety systems. The asset also comes with 26,600 square feet of office build out. Airport Distribution Center is located in the vicinity of the 15 Freeway and just two miles away from the Ontario International Airport, meaning it is in a great position to service SoCal and the West Coast. The acquisition of the industrial asset is part of the buyer’s current business strategy of adding Southern California properties in the $20-$50 million range, part of a partnership with a private equity fund.
The 30 units range in size between 6,256 and 8,962 square feet and are currently leased out to 28 tenants. Airport Distribution Center currently operates with a seven percent vacancy rate, which is slightly above the current average rate recorded in the Inland Empire. According to Marcus & Millichap Real Estate Investment Services, the Inland Empire has recorded impressive growth in the industrial sector, having recorded a large number of completions and consistently increased absorption over the past five years.
According to a recently issued press statement regarding the deal, the president of Guthrie Development Company, Rob Guthrie, expressed the reasoning behind the purchase. “This property provides an excellent opportunity for our firm and joint venture partner to build its Inland Empire industrial portfolio.” He also pointed to the long-standing interest in coastal markets shown by GDC and the company’s willingness to branch out into the Inland Empire using its strategy of selling off separate units as condominiums to small users.
Chart courtesy of Marcus & Millichap Real Estate Investment Services at marcusmillichap.com