CHINO, CA-GlobeSt.com has exclusively learned that Prologis has purchased 5088 Edison Ave., an 18.33-acre manufacturing site here, from Weyerhaeuser. The parties involved in the deal were unable to reveal the purchase price, but sources unrelated to the transaction report that it was $10.1 million.
5088 Edison Ave. encompasses a four-building, approximately 100,000-square-foot campus that is 100% leased to RedBuilt, a manufacturer of patented engineered structural wood products for commercial applications.
Jones Lang LaSalle Los Angeles team members Sam Foster, Mike McCrary and Peter McWilliams represented the seller, while the buyer represented itself. “Our knowledge of the local market enabled us to locate a buyer who saw potential in this property, said Foster in a prepared statement. “The Inland Empire industrial market continues to tighten with first-quarter vacancy coming in at 6.4% and land values continuing to rise, especially in the western part of the region.”
Foster tells GlobeSt.com that rents for industrial properties of 400,000 square feet and higher in the Inland Empire have increased by +/- 50% in the last six quarters and that many developers have developed such product or purchased land to do so. But most land tracts large enough to accommodate such sizes are found in the eastern portion of the Inland Empire.
“The property at 5088 Edison, Chino, is in the western portion of the Inland Empire, which is more attractive to users [interested in] not being so remote from the San Pedro Bay ports,” Foster adds. “This property has the additional virtue of having current income stream for a manufacturer of wooden trusses for commercial buildings, with the potential for future development.”
As GlobeSt.com previously reported, in December 2009 Weyerhaeuser had announced plans to convert to a real estate investment trust in order to take advantage of certain tax benefits. The timing of the conversion was dependent upon the economic recovery and changes in tax policy but was planned for some time in 2010. The firm primarily grows and harvests trees, develops residential lots and builds homes, and makes a range of forest products.
Also as GlobeSt.com previously reported, earlier this week Prologis reported that core FFO as defined by the firm per fully diluted share was $0.43 for second-quarter 2012, compared to $0.35 for the same period in 2011. FFO as defined by the firm per fully diluted share was $0.37 for the quarter compared to $0.03 for the same period in 2011.
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
