Private real estate investment firm The Roxborough Group recently announced its first industrial investment in the Inland Empire market. In partnership with experienced area investor Cress Capital, Roxborough closed on the warehouse and distribution center at 4331 Eucalyptus Ave. in Chino, Calif.
Ricard Schwartz and Joey Reaume of Colliers worked on behalf of the buyers in this transaction and will lead the marketing and leasing work going forward.
Incorporating 100,000 square feet of class A San Bernadino industrial space, the property is fully leased to design and manufacturing company Fabtech Motorsports. The property serves as the firm’s headquarters.
Completed in 2002, the property offers 28-foot clear heights; nine dock-high doors; eight grade-level doors; and 2,000 amps of power. These features make it a good candidate for tenants operating in various industries, including light assembly, manufacturing, and research and development.
“4331 Eucalyptus is a modern, highly functional building with exceptional access to both the Los Angeles and Orange County markets,” said Roxborough Senior Vice President, Nick Bryer. “The off-market acquisition is a result of Roxborough’s focus on investing in high-quality assets that are poised to benefit from our highest-conviction investment themes. The Inland Empire market continues to benefit from the confluence of e-commerce growth, supply chain reconfiguration and the reshoring of manufacturing. This is set against a backdrop of near-zero vacancy and an increasingly difficult development environment.”
Indeed, the Inland Empire market continues to lead in terms of occupancy: According to the latest national industrial report released by CommercialEdge, vacancy in the market averaged 1.1% in September. What’s more, average rents here appreciated more than 9% year-over-year, and the report noted that this was likely to remain the trend going forward. In fact, the nearly 35 million square feet of new industrial space in the pipeline is unlikely to quench the growing demand: Year-to-date sales closed in the Inland Empire market amounted to nearly $3.9 billion and averaged a sale price of $303.42 per square foot.
“Utilizing our deep local roots and local relationships to source compelling off-market opportunities is core to our approach,” said Ryan Parkin, managing partner at Cress Capital. “Well-located and highly functional, the property should perform well as secular shifts continue to drive absorption throughout the Inland Empire industrial market. We remain bullish on the market’s long-term prospects and are actively seeking to expand our industrial portfolio throughout Southern California.”
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