Completed in 2021 and located in the Inland Empire East submarket, the Freeway Business Center is positioned in one of the most desirable industrial real estate and logistics submarkets in the United States, according to Cushman & Wakefield.
Alere Property Group, a developer and investor of industrial real estate in Southern California, acquired the property for $199.25 million from a joint venture company owned by Crow Holdings Industrial and a global real estate investment advisor. The property is fully leased long-term to a national third-party logistics provider.
Cushman & Wakefield Vice Chairman, Jeff Chiate led a team representing both parties to the transaction that included Jeffrey Cole, Mike Adey, Ed Hernandez, Brad Brandenburg, and Matt Leupold from the company’s National Industrial Advisory Group, with local market advisory services provided by Phil Lombardo, Chuck Belden, and Andrew Starnes.
Commenting on the transaction, Chiate said: “Freeway Business Center was a rare and very attractive opportunity to acquire a premier industrial asset supported by a strong tenant in one of the world’s most sought-after industrial markets.
“Adding to the appeal is the property’s outstanding visibility, accessibility and modern features to serve users now and well into the future.
“Class A industrial assets such as this remain in very high demand, not just regionally but across the US due to the on-going strength of the industrial sector along with the demand for modern facilities.”
Alan Carmichael, Senior Vice President of Investments at Alere, added: “Large industrial buildings are increasingly difficult to secure in the core Inland Empire submarkets, and Alere’s team continues to aggressively pursue long-term investment opportunities that meet our criteria.
“Alere currently owns approximately 2.5 million square feet in the Riverside/Moreno Valley/Perris (RMP) submarket and is looking to expand its property holdings in the area. With steep competition from institutional investors and a scarcity of large developable parcels, along with various entitlement headwinds that could limit future supply, we remain focused on acquiring the highest quality assets in prime locations throughout the region.”
Freeway Business Center is located at 2677 E Alessandro Blvd, along the northwest corner of March Air Reserve Base. The facility boasts 36 feet of clear height, ample excess trailer parking, heavy power, ESFR and drive-around access. There are 109 dock high doors, offering abundant loading, and a large secure concrete truck court that stretches up to
approximately 300 feet.
The property provides easy access to the I-215 freeway and Southern California’s vast transportation network. The more than 39-acre property also features over one-half mile of freeway frontage and is situated less than two miles south of the SR-60 freeway interchange. Several major corporate neighbors are also located nearby.
Cushman & Wakefield research upholds key market fundamentals for the Inland Empire East (IEE) region, as underpinned by a recent rise in occupancy levels and significant new leasing activity. In the two years to the middle of December 2021 (the time of thesale), over 11.1 million square feet was absorbed resulting in a shrinkage of vacancy levels to just 1.1 per cent.
