Western Post (US), Inc. signed long-term lease with Morgan Stanley Real Estate for 178,523 square feet at Bridge Point Ontario I. The e-commerce company is expanding its operations in Ontario. The firm runs a distribution facility in Rancho Cucamonga and leased a 300,000-square-foot warehouse in New Jersey.
The latest facility at 4600 E. Wall St., is part of the two-building Bridge Point Ontario complex, a state-of-the-art 268,753-square-foot multi-building distribution development situated on 12 acres that delivered in October 2020. Developed by Bridge Development Company, the complex was forwarded to Morgan Stanley while under construction.
DAUM Commercial’s,Wilson Tran represented the tenant. NAI Capital’s Richard Lee, SIOR, Nicholas Chang, CCIM, SIOR, Justin Kuehn and Sione Fua represented the landlord.
Lee says, “The prompt leasing of Bridge Point Ontario underscores the demand for high-quality distribution centers in the Inland Empire’s tightening western submarket where there is a real lack of inventory, especially of brand-new industrial warehouse space offering freeway frontage.”
The company received a $21 million acquisition loan from Life Insurance Company of the Southwest for the purchase.
A joint venture between M. Payne Investments and Panattoni Development Co. has finalized the $37.3 million sale of a newly constructed industrial facility in Los Angeles to Cohen Asset Management, according to public records.
Life Insurance Company of the Southwest provided a $21 million acquisition loan, according to DataTree. The note carries a 2.9 percent fixed interest rate over a 12-year term.
Located on 5 acres at 15100 S. San Pedro St., the 112,075-square-foot warehouse was delivered earlier this year. The fully leased property features three grade-level and 19 dock-high doors, a 32-foot clear height, a 3,600-square-foot office component and ESFR sprinklers. Situated close to Interstate 110, the building is 11 miles east of Los Angeles International Airport and 14 miles south of the downtown area.
In April, Sam’s Club signed a full-building lease at the property, public records show. The contract spells out a lease term of just under 11 years with two five-year renewal options. DAUM Commercial Executive Vice President Anthony Bergeman negotiated the lease along with Joe Carroll, president of Resource One Real Estate and Development.
Bergeman also assisted the seller in the disposition. Newmark Managing Director Ryan Plummer, Executive Managing Director Sean Fulp, along with Directors Andrey Mindirgasov and Mark Schuessler negotiated on behalf of the buyer.
In July, Cohen Asset Management paid $30.7 million for a 325,800-square-foot warehouse in Phoenix from seller Kansas City Life Insurance.
DAUM Commercial Real Estate Services has completed the sale of Cooley Business Park, a 60,119 square-foot multi tenant office/flex property in the Inland Empire submarket of Colton, California, on behalf of the seller, Oak Properties, a private investor based in San Diego.
The asset is 100% leased to 15 tenants and consists of two buildings totaling 19 units that range from 1,200 to 6,700 square feet, according to Lee Spence, Executive Vice President at DAUM Commercial Real Estate Services, who completed the transaction alongside DAUM Associate Vice President Mark Schafer.
“While the seller had a well-located, fully occupied asset, there was some uncertainty surrounding what the demand would look like for office product in the midst of the pandemic, as many investors sidelined,” explains Spence. “Through effectively communicating the opportunity for immediate cashflow and potential for upside as rent roll turns over, we were able to achieve several competitive offers on the property.”
Spence notes that the in-place leases to a diverse range of tenants at Cooley Business Park were an appealing aspect of the property that allowed for a quick close.
“Despite the additional hurdles in place due to the pandemic, we were able to move the transaction forward smoothly,” says Spence, who notes that the fundamentals of the office market in San Bernardino County have remained relatively steady in the midst of challenges. “Ultimately, we closed on a satisfactory deal for our Client that allows them to strategically move forward with their own business plan.”
Cooley Business Park benefits from a prime location that offers convenient access to major freeways including Interstate 10 and Interstate 215 and several retail amenities, driving tenant appeal. The asset, which is situated on 4.3 acres at a highly visible intersection, is also in close proximity to the Ontario airport, San Bernardino, and downtown Riverside.
The property features attractive architecture and provides tenants with ample parking.
Cooley Business Park was purchased for $5.95 million by a private investor and is located at 930 Mount Vernon and 937 Via Lata in Colton, California.
HESPERIA, Calif. — Modway Inc., a major distributor of living, dining, bedroom, outdoor, lighting and office furniture, plans to establish new distribution operations at Interstate 15 and U.S. Route 395 in Hesperia. Modway will sustain 200 jobs in this new location, which will become operational by fall 2021.
“Our region’s strong transportation infrastructure and skilled workforce continue to support business growth. It’s a great sign for our region to see companies such as Modway thrive and leverage our strong regional market fundamentals, especially in the High Desert, to reach their customers across the U.S.,” said Curt Hagman, Chairman of the San Bernardino County Board of Supervisors.
The new 1 million-square-foot build-to-suit industrial building is located on a 60-acre parcel that is part of the 200-acre Hesperia Commerce Center One project. Hesperia Commerce Center One will be comprised of three class-A logistics buildings, each of which will provide at least 1 million square feet of space.
“On behalf of the residents of the First District, I want to welcome Modway, Inc. and their team to the High Desert,” said First District Supervisor Robert Lovingood. “With its freeway, rail and aviation links and affordable land, the High Desert is a great location for logistics firms. We thank Modway, Inc. for investing in our community.”
CBRE sold the 60-acre Hesperia land parcel to Philadelphia-based real estate investment firm Exeter. Walt Arrington,Darla Longo, Barbara Perrier and Jeff Fritch of CBRE represented the seller, Covington Group, a Dallas-based real estate development firm and its partner M.F. DiScala & Company. Andrew Lara and Gus Andros of Daum Commercial represented Modway in the lease transaction with Exeter.
“We are excited to expand to Hesperia and play a role in helping to create local jobs,” said Modway COO Moshe Melamed. “We look forward to developing a strong partnership with the City of Hesperia and County of San Bernardino,” added Modway CEO Tuvya Greisman.
“This project is a major sign of growth for the City of Hesperia and San Bernardino County,” said Arrington. “Given the strong demand for large industrial land sites throughout the Inland Empire, the Hesperia Commerce Center with its unique location provides a complete logistics solution which includes excellent highway access, an abundant labor pool, affordable housing, and much lower occupancy costs than surrounding markets.”
Modway operates two U.S. distribution sites, one on the East Coast and one on the West Coast, which is located in 310,000-square-feet of space in Fontana. The relocation and expansion to Hesperia triples Modway’s West Coast distribution operations helping them to further scale their business.
“The business park environment is advantageous to Modway because it is entitled, planned and built for industrial distribution,” Lara said. “This move creates greater operating efficiencies for Modway to service the furniture industry. The location also gains from its freeway access to the Port of LA.”
Andros further noted that they have seen a significant increase in industrial transactions ranging in size from 100,000 to 1 million square feet of space in the Inland Empire this year as compared to 2019.
“COVID has not hurt the industrial market and in fact has driven greater demand for well-located warehouse and distribution facilities as the preference for online shopping continues to increase across the nation,” added Andros.
“Business expansion and job creation are priorities for our economic development team. We look forward to working with everyone involved to both welcome Modway as well as help to fulfill the development of Hesperia Commerce Center One as it represents the opportunity to bring more industry and jobs to the High Desert,” said San Bernardino County Interim Economic Development Director Soua Vang.
“We are excited to welcome Modway to our City. This is a great community for corporate expansion and this new development is a market changer for us and the High Desert. Moreover, we have the housing and cost of living that can continue to support employee growth and attraction,” said City of Hesperia Economic Development Manager Rod Yahnke.
Modway supplies the furniture and design trade with over 7,000 SKUs stored in from its strategically located east and west coast warehouses. Modway provides extensive in-stock color, size, and style options with no order minimums, full drop-shipping capabilities, real-time inventory counts, and an easy online ordering process.
Logistics real estate continues to power through the downturn, buoyed by explosive growth in online retail. By some accounts, the forecast for industrial demand is better today than it was before the pandemic hit.
Prologis, the world’s largest owner of commercial warehouses, estimates that e-commerce customers require 1.2 million square feet of distribution space to support each $1 billion in sales. That figure helps explain why leasing activity rebounded quickly after a virus-induced pullback in March and April.
“We anticipate that accelerated e-commerce adoption and higher inventory levels have the potential to generate 400 million square feet or more of additional demand over the next two to three years,” commented Melinda McLaughlin, vice president of research at Prologis.
During the second quarter, U.S. e-commerce sales surged by 44.5 percent year-on-year as lockdowns and stay-at-home orders helped drive online purchases to more than $200 billion, according to the Department of Commerce. The blizzard of online sales is strengthening logistics hubs such as Kansas City, Kan., where fashion and lifestyle retailer Urban Outfitters announced in August it would build a $350 million omnichannel distribution center to support the company’s digital growth.
“Leasing volume has been strong, and the number of inquiries has been very strong,” said Rick John, executive vice president & branch manager at DAUM Commercial Real Estate Services. The industrial specialist in California’s Inland Empire added, “It’s been pretty healthy across the board, but the predominant force has been e-commerce.”
Construction activity remains robust, John added, but the COVID-19 situation has slowed the entitlement process, which will put more pressure on existing inventory. “Believe it or not, we have a shortage of million-square-foot buildings right now,” he said.
DAUM Commercial Real Estate Services has arranged a 42,000-square-foot, full-building lease at a Phoenix industrial facility. Executive Vice President David Wilson and Associate Carter Wilson represented the landlord and assisted the tenant, Empire Metal Products. The 10-year lease has a total value of $4.3 million.
Built in 1980, the facility is fully air conditioned and has 277/480-volt three-phase power with 3,600 amps, 18-foot clear heights and 12- by 16-foot grade-level overhead doors. According to Yardi Matrix, the asset last changed hands in 2017 for $4.2 million.
Located at 2362 W. Shangri-la Road, on 2.2 acres, the Class B property is just off Interstate 17. According to Carter Wilson, the asset is 2 miles from the tenant’s long-term headquarters, from which Empire Metal is planning to relocate and expand its manufacturing operations. The new location is 11 miles from downtown Phoenix.
At the end of July, another DAUM team negotiated a full-building industrial sublease outside Los Angeles. Robertson Properties Group owns the 254,700-square-foot property in La Mirada, Calif.
DAUM Commercial Real Estate Services completed the $14.35 million sale of two industrial warehouses totaling more than 85,000 square feet in the South Bay submarket of Rancho Dominguez. The buyer was Chicago-based First Industrial Realty Trust, while the seller was an unnamed cosmetic products manufacturer.
First Industrial plans to strategically redevelop the infill asset to fit robust distribution needs. The redeveloped site at 19400 and 19302 S. Laurel Park Rd. will consist of a 27,962 square-foot building with 15 docks situated on 3.98 acres of land. This redevelopment project is scheduled to be completed Q3 2021.
DAUM’s Natalie Lara advised the seller and procured the buyer, along with Jordan Lara and Andrew Lara.
Andrew Lara says, “Sourcing a buyer who could redevelop the asset to access its full potential and fulfill a huge demand in the market required several specific real estate fundamentals to come together. Ultimately, this was a true win-win scenario for both parties involved.”
Greenlaw Partners has acquired an industrial warehouse in north Los Angeles in a foreign trading zone. The asset traded hands before the coronavirus-inflected economic disruption and was highly sought after among investors. However, the property could be among the last to trade in the near-term as the pandemic has caused a market pause. The deal is an example of the demand for industrial properties prior to the outbreak.
“The lower tariffs that a foreign-trading zone location offers manufacturers was an added incentive that made the asset highly competitive amongst buyers,” Dennis Marciniak, VP of DAUM Commercial Real Estate Services, tells GlobeSt.com. “While the building ultimately sold to an investor with a distribution tenant in place, this in-demand location helped us to negotiate a strong price for our client.” Marciniak represented the seller in the deal along with VP Larry McEwan.
The 131,000-square-foot property is located on 8.7 acres and includes ample warehouse space, 15,000 square feet of office, a conference room, and an overflow storage area. The building features 28-foot clear height, four dock-high loading doors, and 100% refrigerated air. The asset received strong interest, no surprise since activity was healthy in the early part of the year. “Industrial activity throughout the first couple months of the year was very strong, as anticipated,” says Marciniak. “Naturally, the COVID-19 pandemic has caused a slowdown due to economic uncertainty.”
The outbreak will likely impact industrial investment activity, particularly in the first half of the year, depending on the severity. “At the moment, the industry is waiting to see how the situation plays out and many investors are taking a conservative approach for the time being,” says Marciniak. “If this crisis extends for longer than a month or two, we could see a ramp-up in activity later on in the year, as those who are looking to deploy capital into the market could see an opportunity where prices may decline and ultimately find bargains.”
As for now, Daum is recommending that clients pause before bringing assets to the market. “We’re advising our clients to hold off on marketing properties at the moment as we continue to monitor the situation,” adds Marciniak. “Investors with cash-flowing assets will likely want to hold on to their assets for at least another few months, before reevaluating.”
Sinclair Printing has sold an industrial warehouse in Palmdale for $15 million.
Greenlaw Partners acquired the 130,392-square-foot Antelope Valley property, located at 600 W. Technology Drive.
Greenlaw has secured a tenant for the building. A previous story by the Business Journal identified the tenant as Amazon.com, Inc., which plans to establish a Delivery Services Partners center at the facility.
Delivery Services Partners is a program which the e-commerce giant launched in 2018. It sees a logistics company partner lease Amazon-branded vans and hires its own drivers to deliver packages.
Situated on 8.7 acres, the 1998-built asset features ample warehouse space, 15,000 square feet of office space, a conference room and overflow storage space. The structure features 28-foot clear heights, four dock-high loading doors and refrigeration. It was previously occupied by SST Technologies.
Dennis Marciniak and Larry McEwan of Daum Commercial Real Estate Services brokered the property’s sale.
Voit Real Estate Services’ Mike Bouma and Paul Caputo identified and completed the $7.5 million acquisition of a 38,156 square-foot industrial building located at 12570 Industry St. in Garden Grove, CA, on behalf of the private buyer, The Smith Family Trust.
The seller, First GEM Properties, LLC, was represented by Chris Migliori and Paul Gingrich of DAUM Commercial Real Estate Services.
The Smith Family Trust will use a portion of this property for the expansion of its Garden Grove-based business, Teacher Created Resources, with the remaining portion of the building occupied in a multi-tenant format.
According to Teacher Created CEO Darin Smith, “Mike and Paul were able to identify an excellent investment opportunity for us in this tight market. The property will meet our current expansion needs, while providing an excellent source of rental income from the existing tenants, and potential future expansion as our business continues to grow.”