Industrial Property in CA Trades for Record $214M
- Apr 26, 2019
Pacific Industrial has sold a 1.5 million-square-foot industrial property in the Inland Empire for a record $213.5 million, making it the largest non-portfolio industrial property sale in the state of California in the past two years, according to the firm.
The Class A two-building property, Sierra Pacific Center, was acquired by an institutional life insurance company. The facility is currently fully leased to LG Electronics and is one of Pacific Industrial’s first ground-up developments.
The seller was represented by a team from Cushman & Wakefield’s National Industrial Advisory Group, which comprised Jeff Chiate, Mike Adey, Jeffrey Cole, and Ed Hernandez, as well as Chuck Belden and Phil Lombardo, who served as market advisers.
Built in 2016 through a partnership with an institutional investor, Sierra Pacific Center is located at 5565 and 5885 Sierra Ave., in Fontana, Calif. The facility is adjacent to Interstate 210 and is within a 20-mile radius of seven major freeways. Amenities at the property include electric vehicle charging stations and 100 percent concrete truck courts with up to 430 feet of depth.
Dan Floriani, partner & co-founder of Pacific Industrial, said the firm is currently developing 1.5 million square feet of industrial properties in California. “This activity speaks to a continued institutional appetite for industrial developments where tremendous value creation with the right developer is not only possible, it’s been proven,” said Floriani, in prepared remarks.
The rapid growth of e-commerce has been a huge driver for some of the biggest industrial leases in the U.S., according to an October 2018 report by CBRE. Earlier this week, Exeter Property Group acquired an 800,000-square-foot Inland Empire distribution center for $98 million.