HFF Completes Sale of Inland Empire West Industrial Development Project
- Nov 16, 2014
Holiday Fenoglio Fowler recently completed the transaction for an Inland Empire West industrial development project. HFF worked on behalf of Xebec Realty Partners, and marketed the Catawba Distribution Center in Fontana, CA. The property was eventually sold by the commercial real estate and capital markets services provider to a discretionary real estate fund for a total fee of around $23 million. The HFF team in charge of the sale consisted of Senior Managing Director Anthony J. Brent and Managing Director Ryan Martin.
Catawba Distribution Center is a fully entitled, future industrial development that when completed will offer up a total of around 310,550 square feet of space. The site totals 13.78 acres of land at the intersection of Santa Anna Avenue and Catawba Avenue, in Fontana, just east of Los Angeles. The site offers great access to Interstate 10, and is located around 12 miles away from the LA/Ontario International Airport. Once completed, the Catawba Distribution Center will feature 32-ft. clear heights, a 180-ft. secured concrete truck court, as well as 35 dock-high positions with 59 trailer positions. The current construction schedule on the project means that the industrial property will be completed in August 2015.
The location of the project in the improving Inland Empire, a hotbed for industrial properties, was an advantage in the sale process. According to Anthony J. Brent, the transaction was “representative of the demand for quality core distribution product,” and he noted that the markets located in the Inland Empire area have seen rent rates go up and vacancy rates go down, especially in the “300,000-square-foot category.” According to data provided by Marcus & Millichap Real Estate Investment Services, the amount of completions in the industrial sector in the Riverside-San Bernadino market has been on a constant upswing over the past few years. Estimated figures for the end of 2014 place the vacancy rate at around six percent, with completions set at nearly 18.5 million square feet of space, expanding the existing stock by around 4.2 percent.
Chart courtesy of Marcus & Millichap at marcusmillichap.com