Daum Brokers Inland Empire 113 KSF Industrial Buys
- Aug 16, 2017
Daum Commercial Real Estate Services brokered two industrial acquisitions in the Inland Empire for more than $13.1 million. The properties in Corona and Ontario, Calif., total 112,671 square feet.
Local developer Excel Business Park LLC acquired a 68,394 square-foot building in Corona, Calif., from Newport Trading LLC for $7.5 million. Located on a 157,252-square-foot lot at 1228 Sherborn St., the property is currently fully vacant after furniture distribution company Somerton Dwelling recently relocated. The buyer plans to complete interior and exterior upgrades within the next week. Daum will handle leasing for the property, which is well-suited for warehousing and distribution and could also be easily adapted to light manufacturing. The property features six dock-high loading doors, 2,000 amps of power and a fully installed high-pile racking system. The asset has convenient access to Interstate 15 and State Route 91.
A manufacturer of vitamins and supplements purchased a 44,277-square-foot warehouse in Ontario, Calif., for $5.6 million and intends to occupy the entire property. The newly-constructed Class A building sits on 1.8 acres at 1320 W. Mission Blvd. The asset features 30-foot warehouse clearance, four dock-high loading doors, one ground-level door and 4,485 square feet of office space. Henry Hong and Michael Lee of Lee & Associates represented the seller, regional developer Mission XC LLC. The property offers easy access to Interstate 10 and state routes 83 and 60. Last month Rexford Industrial Realty Inc. purchased four multi-tenant industrial buildings six miles west of the property for $26.9 million.
Small properties win big
“Despite a record level of new industrial construction in the Inland Empire, vacancy rates in the region are expected to remain in the 4 percent range. Demand continues to exceed supply,” said Chris Migliori, executive vice president in DAUM Commercial’s Newport Beach office, in prepared remarks. “Smaller industrial buildings in the 40,000 to 60,000-square-foot range have vacancies below 2.5 percent. Increasing land values and construction costs are driving up rents and sale prices.” Migliori represented the buyers in both transactions and notes that small-size warehouses can be double the cost per square foot to build, resulting in increased competition for existing inventory.
Images courtesy of Daum Commercial