Cushman & Wakefield Advises Sale of 709,000 SF Distribution Facility in Inland Empire for Nearly $200 Million

RIVERSIDE, Calif., January 25, 2022 - Cushman & Wakefield has advised the sale of a brand new 709,081-square-foot state-of-the-art Class A industrial warehouse facility situated on over 39 acres in Riverside (Los Angeles), California. Completed in 2021 and located in the Inland Empire East submarket, the single-tenant facility known as Freeway Business Center is positioned in one of the nation’s most desirable industrial real estate and logistics submarkets according to Cushman & Wakefield.

Alere Property Group, a leading developer and investor of industrial real estate in Southern California, acquired the property for  $199.25 million from a joint venture between Crow Holdings Industrial and a global real estate investment advisor.

The property is fully leased long-term to a national third-party logistics provider.

Jeff Chiate, Jeffrey Cole, Mike Adey, Ed Hernandez, Brad Brandenburg, and Matt Leupold of Cushman & Wakefield’s National Industrial Advisory Group represented both parties in the transaction. Local market advisory was provided by Cushman & Wakefield’s Phil Lombardo, Chuck Belden, and Andrew Starnes.

“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,” said Jeff Chiate, Vice Chairman. “Adding to the appeal is the property’s outstanding visibility, accessibility and modern features to serve users now and well into the future.”

Chiate continued, “Class A industrial assets such as this remain in very high demand, not just regionally but across the US due to the ongoing strength of the industrial sector along with the demand for modern facilities.”

Freeway Business Center is located at 2677 E Alessandro Blvd, along the northwest corner of March Air Reserve Base. The facility features 36-foot 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 located less than two miles south of the SR-60 freeway interchange. Several major corporate neighbors are also located nearby.

“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,” said Alan Carmichael, Senior Vice President of Investments at Alere. “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, Alere remains focused on acquiring the highest quality assets in prime locations throughout the region.”

According to Cushman & Wakefield research, market fundamentals remain very strong in the Inland Empire East (IEE) with robust occupancy gains and significant new leasing activity. In the approximately two years spanning 2020 through mid-December 2021 (the time of sale) more than 11.1 msf was absorbed shrinking overall vacancy to just 1.1% in the IEE, and a mere 0.6% in the Riverside submarket.