SoCal Logistics Project Kicks Off Goodman’s $1.4B Development Pipeline
- Jun 05, 2014
Through its wholly owned North American subsidiary, Australian industrial property powerhouse the Goodman Group has launched a $1.4 billion, 15 million-square-foot U.S. development pipeline by breaking ground on a $150 million logistics center in Rancho Cucamonga, Calif., Goodman announced Wednesday.
The project, Goodman Logistics Center Rancho Cucamonga, will consist of two cross-dock facilities, of 555,664 and 1.034 million square feet, on a 75-acre site. The two buildings are scheduled for completion in March 2015 and May 2015, respectively. Both will feature 36-foot clear heights and truck court depths of a minimum 185 feet.
The development is less than one mile from the 15 freeway, less than two miles from the 10 freeway and seven miles from Ontario International Airport.
Goodman’s U.S. subsidiary, Goodman Birtcher, acquired the property in 2012. The land was sourced through Lee & Associates Ontario, which will also serve as the center’s listing brokers.
When it’s completed, the logistics project will be the largest available in the Inland Empire West, Goodman Birtcher CEO Brandon Birtcher told Commercial Property Executive. The three likeliest sectors to generate one or more occupants for the project are e-commerce, consumer products or 3PL, he said.
The Rancho Cucamonga groundbreaking follows the recent completion of Goodman Logistics Center Oakland, a $45 million facility that was Goodman Birtcher’s first development project. A letter of intent reportedly has been signed for a portion of the space there.
As of now, the rest of the Goodman Birtcher development pipeline is based on the company’s sizable land bank in Southern California, comprising 269 acres of developable land across a number of sites that currently are at different stages of planning approval.
Potential projects include:
• Goodman Logistics Center Fontana: a 30-acre site for a 639,000-square-foot logistics facility.
• Goodman Commerce Center Eastvale: a 181-acre site adjacent to the 15 freeway and with the potential for up to 3.7 million square feet of mixed uses, including retail, medical, hospitality, office, business park and light industrial.
• Goodman Logistics Center Santa Fe Springs: a master-planned 53-acre site with the potential for 1.2 million square feet of warehouse/distribution space across three buildings.
• Goodman Logistics Center Compton: a 5-acre site for an approximately 102,000-square-foot logistics facility.
Although these, like the Rancho Cucamonga project, are all speculative at this point, Birtcher prefers to call them “inventory buildings,” because he expects that current market conditions will lead to lease deals during the development processes.
The five SoCal developments reportedly will total about $775 million in completion value.
Goodman Birtcher was formed in June 2012 by Goodman’s purchase of Birtcher Development & Investments, a family-run West Coast firm founded in 1939.
When Goodman Birtcher came into being, Brandon Birtcher told CPE, it was provided with $890 million in equity capital, 55 percent of it directly from Goodman and the rest from Goodman partner the Canada Pension Plan Investment Board. That investment, he said, led to the end value of $1.4 billion that Goodman Birtcher is working toward deploying.