RIVERSIDE, CA—San Francisco-based Newcastle Partners Inc., a San Francisco-based real estate investment and development company, has acquired 13 acres of land for industrial development. The site is located at Opportunity Way within Meridian Business Park, a 1,290-acre master-planned commerce center in Riverside, a city within the Inland Empire region of Southern California.
With this latest acquisition, Newcastle Partners' development activity within the park now totals 1.37 million square feet on 66 acres of land. Newcastle plans to develop a new speculative industrial distribution facility totaling 260,000 square feet at the site.
Construction is anticipated to begin late this year with completion expected in the fall of 2015. Planned building features include: 32' clear height, ESFR sprinkler system and a cross-dock design that includes up to 185' truck courts.
Upon completion, the value of the facility is estimated to be approximately $20 million. This is the third phase of activity for Newcastle within Meridian Distribution Center, a major industrial property development within Meridian Business Park.
At the end of 2013, construction of Phase 1 was completed which included a 600,000-square-foot class A distribution building. The firm recently finalized plans for Phase 2, a 510,000-square-foot class A distribution building.
“The Inland Empire continues to set records for industrial absorption,” says Jackson Smith, who heads Southern California operations for Newcastle Partners. “The impact of e-commerce and increasing Port of Los Angeles traffic are some of the drivers pushing major corporations to continue aggressive expansion into the region.”
According to Smith, “This ongoing level of activity is driving our focus on speculative development as the market doesn't seem to have enough space to meet demand. We've already had great interest in Meridian Distribution Center as the region provides all the strategic advantages that corporate users want today.”
Similar to the first two phases, this site offers excellent visibility and access to Interstate 215 providing strategic proximity to the greater Southern California region, air and rail hubs, and the ports of Los Angeles and Long Beach.
Dennis Higgs, Newcastle Partners' managing partner and founder, says that corporate users prefer locating near other high profile users. “The quality of Meridian Business Park and its amenities rivals all other state-of-the-art product throughout the Inland Empire region. The visibility, access to the freeway system and ports, and quality of its tenant base is unsurpassed. Kia Motors, McLane Foodservice, Sysco Foods, and the University of California at Riverside all have located here for these reasons.”
Phil Lombardo and Chuck Belden with Cushman & Wakefield represented Newcastle on the land acquisition, as well as the seller of the land, LNR Riverside Holdings, LLC. Lombardo and Beldon are also responsible for leasing of the facility in addition to Newcastle's Phases 1 and 2 at Meridian Distribution Center.
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Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
