Small Industrial Space is Still a Big Deal

Press Enterprise

July 18, 2011

The transactions are, admittedly, not huge but news that people are looking for some manufacturing space in Inland Southern California is quite encouraging nevertheless.

Technology Solutions and Services, a manufacturer of LCD monitors and computers for Hewlett Packard, has purchased a 15,200-square-foot industrial building at the Waterman Business Center in San Bernardino for $1.1 million.

Seventh Street Development, the Long Beach-based developer that built the facility, said the complex at Waterman Avenue and Commercial Road is 191,000 square feet of office, industrial and flex space.

Seventh Street Development also said it has sold an 18,500-square-foot manufacturing facility in a Pomona industrial park to Eden Equipment Co., a firm that makes specialized filtration vessels and filter cartridges. That facility sold for $2.2 million.

The deal means the Pomona business park has only one vacant building left, and according to a statement, the developer could start constructing an addition next year.

Craig Furniss, Seventh Street’s principal, said there’s an important message behind these seemingly minor deals.  He believes small manufacturers and food companies will be at or near the head of the parade when the economy recovers and he said these two sales are evidence of that.

A small strip center in Hemet has been purchased for just over $1.7 million, according to a statement.

The Alessandro Center, a two-story, 18,000-square-foot in the 600 block of San Jacinto Avenue near East Menlo Avenue, was purchased by an entity called Country View Resident LLC. The seller was Winchester Partners.

The center was built in 1983 and at one time housed the Hemet Chamber of Commerce’s offices. CB Richard Ellis’ Ontario office represented both sides in this transaction.

Rancho Logistics LLC has signed a $3.1 million lease on an industrial property in Rancho Cucamonga.

The company, which provides logistics services and warehousing for retailers, will use the 172,600-square-foot facility as a distribution center, consolidating operations at two current warehouses in Walnut and the City of Industry.

The 60-month lease will enable the company to reduce expenses by taking advantage of competitive Inland rates, according to the Ontario office of commercial brokerage firm Lee & Associates, which represented the new tenant. “We continue to see improving fundamentals in the 150,000-square-foot and larger segment of the industrial warehouse category in the IE,” said Vince Anthony, principal and senior vice president in the Ontario office.

Recently, Lee & Associates also brokered a $5.7 million sale of a 235,000-square-foot property in San Bernardino, and the $8.5 million sale of a 190,000-square-foot property in Chino.

NAI Global, the parent company of Southern California global commercial real estate firm NAI Capital, has been purchased by C-III Capital Partners for an undisclosed sum, according to a statement.

NAI Capital, which is based in Encino and has active offices in Ontario, Riverside and Palm Desert, has arranged leases for numerous Inland retail and industrial properties in the past 12 months. Their deals run from a sizable distribution center in Ontario to a restaurant lease in Eastvale to a nursing home in the CoachellaValley.

NAI Global, which has 350 offices and 5,000 employees, will continue to operate as a separate company under its current management team, according to the statement released Tuesday.

C-III, which is based in Irving, Texas, has a portfolio that includes $150 billion in assets.

Last year the company purchased an institutional real estate debt fund and launched mortgage origination, investment sales and title insurance businesses from scratch. The firm also expanded other financing operations. The deal is expected to close some time in the third quarter.

By: Jack Katzanek



Posted July 18, 2011 by jcowan in News