Behringer Harvard, CT Realty Sell Inland Empire Industrial Asset
- Apr 30, 2013
A joint venture of Behringer Harvard and CT Realty Investors has sold the Interchange Business Center, a 667,024-square-foot industrial asset in Southern California’s Inland Empire. The purchase price and identity of the buyer—described as one of the nation’s largest privately held real estate advisors—were not immediately disclosed.
Located at 1420-1440 Third St., in San Bernardino, the three buildings sold by Behringer Harvard and CT Realty are situated on a 34-acre site. Interchange Business Center’s fourth property, a multi-tenant office building, was sold last October.
Behringer Harvard acquired Interchange Business Center in November 2010 through its third joint venture with CT Realty, a real estate investment and development firm based in Aliso Viejo, California.
“When we acquired this asset, we believed that Interchange Business Center represented an attractive opportunity to capitalize on market stress by acquiring Class A industrial space in a recovering market at a significant discount to replacement cost,” Jason Mattox, Behringer Harvard’s COO, told Commercial Property Executive. “We expected this asset to benefit from a strong Inland Empire location and superior quality of construction. We believe this property fulfilled our expectations for upside potential.”
According to Mattox, the partners had completed their value creation strategy for the asset, which focused primarily on improving occupancy, so this was an opportune time to sell the property and redeploy the proceeds.
All told, partnerships of Behringer Harvard and CT Realty Investors have acquired and disposed more than 2.4 million square feet of high-quality industrial space in the Inland Empire.
“The Behringer Harvard REIT that invested in Interchange Business Center pursues an opportunistic investment strategy,” he said. “CT Realty has been an outstanding business partner and we are pleased with the attractive returns achieved by our joint ventures.” The REIT reaped a 12.7 percent annual average return from the sale of the four buildings at Interchange Business Center.