Magellan Buys Industrial Building in Inland Empire
- Jun 17, 2011
June 18, 2011
By Barbra Murray, Contributing Editor
Investor interest in California’s Inland Empire continues to heat up and The Magellan Group is among the latest to get a piece of the pie. The real estate investment and development firm joined forces with equity partner Penwood Real Estate Investment Management to acquire 1400 Victoria Ave., a vacant 235,000-square-foot industrial asset in San Bernardino, Calif., from CALBLDG for $5.5 million.
Commercial real estate services firm Lee & Associates represented both the seller and the buyer in the lease transaction.
A rail-served facility developed in 1980, 1400 Victoria sits on 10 acres about a 90 minute drive west on the 10 freeway to the Port of Los Angeles and the Port of Long Beach, the two largest ports on the West Coast, according to American Association of Port Authorities statistics. Magellan, which is keen on value-add industrial properties, plans to invest approximately $1 million in upgrades.
With a facelift, a new management team and an increasingly healthy industrial market, 1400 Victoria may not sit empty for much longer. The vacancy rate in the Industrial Empire was 9 percent in the first quarter, marking a year-over-year decline of 290 basis points. The proof is in the pudding. Recently, Hewlett Packard Co. signed a deal to occupy all 1.4 million square feet of Cajon Distribution Center, a two-building complex in San Bernardino, Calif. Additionally, Ingram Micro committed to 562,000 square feet at 3510 E. Francis Ave. in Ontario, and just days ago, confirmation emerged of M&M Mars’ lease of 495,000 square feet in a building at the 2,500-acre Southern California Logistics Centre in Victorville.
But Magellan has more than leasing on its mind. Flipping is coming back in fashion as conditions continue to improve, so the company will also market the building for sale.