LOS ANGELES—Principal Real Estate Investors has acquired the industrial portfolio known as the March Business Center from a joint venture between Penwood Real Estate Capital Management and Western Realco for $93 million. The newly developed property was purchased in a pre-sale agreement two years ago and the transaction closed when construction completed on the property this month. The Inland Empire property has 1.38 million square feet and has two buildings.
“The seller's goal was always to monetize the asset in some way, and the fastest way for them to do that was to sell it on a forward or pre-sale basis,” Chuck Belden of Cushman & Wakefield tells GlobeSt.com. “We identified a buyer and then built the property, and over a series of various construction standards over the course of the process deposit money is made on a non-refundable basis. They then close on the transaction upon building completion.” Belden, Kyle Kehner and Tim Pimentel with Cushman & Wakefield's Inland Empire office represented the seller and the buyer in the sale.
The buyer agreed to pre-lease in August/September 2014, and construction started on the property the following March/April. At the time, this was one of only a few million-square-foot properties under construction at the time. “At the time, building a million square foot building was somewhat of an anomaly,” adds Belden. “I say that in light of the fact that there were four other million-square-foot buildings in various process of construction, and this building was the furthest East. Every single building that has been built in the Inland Empire post recession has pre leased or leased upon completion.”
The property was widely marketed and received strong interest from investors and other developers looking to by the land site. Belden estimates that they got 50 initial interested investors. “It was widely marketed, and we had good activity. We pretty quickly narrowed it down to three players at the end of the day,” he says. “A lot of people were interested in buying the land, and that just wasn't in the game plan. There was more profit in it to sell it on a forward basis than to sell in on a land sale basis.”
Following the sale, Floor and Déco leased the full building. Tres Reid and Jay Dick of CBRE represented the tenant in the lease transaction.
The industrial sector has become the hottest segment in commercial real estate. How will logistics companies keep up with the market forces of omnichannel commerce? When will new supply finally catch up with demand? Who's putting investment capital into industrial and what does the future hold? Join us at RealShare Industrial on November 16 and 17 for answers to these and other questions. Learn more.
LOS ANGELES—Principal Real Estate Investors has acquired the industrial portfolio known as the March Business Center from a joint venture between Penwood Real Estate Capital Management and Western Realco for $93 million. The newly developed property was purchased in a pre-sale agreement two years ago and the transaction closed when construction completed on the property this month. The Inland Empire property has 1.38 million square feet and has two buildings.
“The seller's goal was always to monetize the asset in some way, and the fastest way for them to do that was to sell it on a forward or pre-sale basis,” Chuck Belden of Cushman & Wakefield tells GlobeSt.com. “We identified a buyer and then built the property, and over a series of various construction standards over the course of the process deposit money is made on a non-refundable basis. They then close on the transaction upon building completion.” Belden, Kyle Kehner and Tim Pimentel with Cushman & Wakefield's Inland Empire office represented the seller and the buyer in the sale.
The buyer agreed to pre-lease in August/September 2014, and construction started on the property the following March/April. At the time, this was one of only a few million-square-foot properties under construction at the time. “At the time, building a million square foot building was somewhat of an anomaly,” adds Belden. “I say that in light of the fact that there were four other million-square-foot buildings in various process of construction, and this building was the furthest East. Every single building that has been built in the Inland Empire post recession has pre leased or leased upon completion.”
The property was widely marketed and received strong interest from investors and other developers looking to by the land site. Belden estimates that they got 50 initial interested investors. “It was widely marketed, and we had good activity. We pretty quickly narrowed it down to three players at the end of the day,” he says. “A lot of people were interested in buying the land, and that just wasn't in the game plan. There was more profit in it to sell it on a forward basis than to sell in on a land sale basis.”
Following the sale, Floor and Déco leased the full building. Tres Reid and Jay Dick of CBRE represented the tenant in the lease transaction.
The industrial sector has become the hottest segment in commercial real estate. How will logistics companies keep up with the market forces of omnichannel commerce? When will new supply finally catch up with demand? Who's putting investment capital into industrial and what does the future hold? Join us at RealShare Industrial on November 16 and 17 for answers to these and other questions. Learn more.
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