CenterPoint Properties is proud to announce the acquisition of a new property to its growing portfolio in California’s Inland Empire: 5600 E. Airport Drive, in Ontario, California.
With 1.6 million-square feet of building space and 94.23 acres of land, this transaction represents one of the largest industrial trades of the decade.
California’s Inland Empire, about an hour east of Los Angeles, is recognized as one of the country’s hottest areas for industrial warehousing. For the past 10 years, the region has experienced explosive growth with record low vacancy and rising lease rates.
The acquisition includes a short-term leaseback; however, the project will be marketed for lease immediately. The business plan is to leverage the existing improvements and capitalize on a parking ratio 5x greater than the market average. The site can accommodate multiple tenants, including a combination of standalone yards.
The acquisition is CenterPoint’s first investment in the Inland Empire since 2012. “The investment is consistent with our continued focus on low coverage assets with an emphasis on trailer and car parking,” said Bob Andrews, Senior Vice President of Asset Management.
Ryan Dunlap, Senior Vice President of Investments for CenterPoint, led the acquisition effort and runs West Coast investments. “This investment epitomizes our ‘land value-plus’ strategy and emphasizes on the ability to harvest value on in-place improvements,” said Dunlap. “The pricing model leverages implicit land value and fills the void between the low-cost provider and Class A construction,” finished Dunlap.
Located at the region’s premier intersection, CenterPoint’s new asset presents easy access to freeways I-10 and I-15 and to Ontario International Airport, which lies less than three miles away and has been recognized by Global Traveler as the fastest growing airport in the U.S. for the second consecutive year.
This purchase represents CenterPoint’s third “million-plus” square foot acquisition over the past three (3) years in Southern California. Most notably, CenterPoint stabilized the first of the trio with a lease to Unis at 6800 Valley View, Buena Park, CA. “The ecosystem of infill million square-foot lease opportunities has managed to take on a non-commodity identity in a world of commodity,” said Greg Pearson, Vice President of Investments.
CenterPoint was represented by Thad Mallory, Bret Hardy and Jim Linn of Newmark Knight Frank in the off-market transaction.