REDLANDS, CA—Crow Holdings Capital Real Estate and Seefried Properties have formed a partnership to purchase a 43-acre industrial development site in Redlands, CA. The development is fully entitled for a two-building, 1-million-square-foot industrial complex, which will be known as the Redlands Logistics Center. Construction is scheduled to begin in the late summer of this year. The purchase price of the site was not disclosed.

“This site yielded two great building sizes that are attractive on the market, and they are situated in the popular Redlands submarket,” Tom Taylor, SVP at Colliers International, tells GlobeSt.com. “Once you are situated in the Inland Empire East, Redlands is by far the most popular user destination as well as institutional capital destination. The reason being is because it is a corporate neighborhood with Fortune 500 companies, very solid institutional ownership and it is located right along the 10-freeway corridor.” Taylor represented the buyer and the seller in the transaction, with managing directors Rick Putnam and Bret Hardy as well as SVP Steve Bellitti, VP Josh Hayes and senior associate Summer Coulter of the firm's Ontario office, which has also been hired as an exclusive leasing agent for the property once it is complete.

The two class-A buildings will be 614,328 square feet and 313,470 square feet with building amenities that will include 185-foot truck courts and large trailer storage. The 43-acre site was originally two separate sites owned by investor groups Stonecreek and Chiming. “The two investor groups decided to entitle both sites and dispose of them in one transaction because the sites were worth more together than they were separately,” says Taylor. The surrounding submarket has a low 5.2% vacancy rate.    

The Colliers International team widely marketed the property to investors nationwide, and eventually received 10 offers from potential buyers. The sellers settled on the partnership for their excellent capability and strong bid. “At the end of the day, they paid the best price, but they were also extremely capable and really did all of the right things as we worked through the process,” says Taylor. “The ownership decided that they were the right group to choose.” Once the buyers complete construction, they plan to either lease the property or market it for sale to an owner-user.

The area is becoming very popular for investors. Hillwood Investment Properties is expanding its nearby AllianceCalifornia development with the construction of Gateway South Building 3, a 1-million-square-foot industrial facility.