Irvine-based Sares-Regis Group has sold one of Southern California’s largest industrial development sites to an Atlanta-based investment management group.
Sares-Regis announced last week that it has struck a deal with Invesco Ltd. in Atlanta for the Chino South Logistics Center. Terms were not disclosed.
The project includes four buildings totaling about 2.1 million square feet. It’s located about a mile from the Corona (71) Freeway, near the intersection of Euclid and Pine avenues.
The 125-acre Chino site is said to be the largest speculative industrial development in the Inland Empire.
The project is still under construction. Sares-Regis said the four warehouse-and-distribution buildings are slated for completion by the developer in the second quarter of the year. The largest property at the logistics center will run 780,000 square feet.
Sares-Regis had valued the completed project at $160 million, according to Larry Lukanish, senior vice president in the company’s commercial investment division.
Invesco plans to offer the buildings for lease.
The buildings will be completed “in a submarket with a less than 1% vacancy rate among class A distribution facilities. There is great demand for these buildings,” Lukanish said in a statement.
It’s the second notable industrial deal that Sares-Regis has made in the past few months with an institutional investor.
The company recently announced that it sold a 305,361-square-foot building it just built on Sorensen Avenue in Santa Fe Springs, to Denver-based Industrial Income Trust.
Representing Sares-Regis and Invesco in the Chino transaction were Darla Longo, Barbara Emmons and Rebecca Perlmutter-Finkel in CBRE Group Inc.’s Los Angeles office, as well as Tom Taylor and Steve Bellitti in Colliers International’s Inland Empire office.
Cheaper Deal
Houston-based real estate developer and investor Hines Interests LP appears to have gotten a much better deal for its recent purchase of the 25-acre Raytheon Campus in Fullerton than first believed.
Last month I wrote a story on the purchase of the two-building, 405,130-square-foot Raytheon office complex that sits next to Amerige Heights in Fullerton.
The office property, which has long held the main local operations of defense contractor Raytheon Co., was bought in a venture between Hines and Los Angeles private equity firm Oaktree Capital Management LP.
Terms of the sale, which closed at the end of December, were not immediately disclosed.
My story included estimates from real estate sources not involved in the transaction, who said they expected that the Fullerton property commanded a price in excess of $50 million, or roughly $125 per square foot.
The one caveat in that estimate was taking into account a ground lease for the property, which, sources noted, made it hard to get a firm estimate on a sales figure.
Raytheon is believed to own the grounds of the campus, and had been leasing it to the last owner of the buildings.
The ground lease appears to have had a major factor in the sale price for the buildings; CoStar Group Inc. data now reports that the office campus traded hands for just $18 million.
CoStar also reports the property’s seller—which previously was undisclosed—as an affiliate of Richmond, Va.-based Phillip Morris USA.
Apartments Trade
Western National Realty Advisors, a unit of Irvine-based apartment investor and developer Western National Group, has paid nearly $101 million for a pair of apartment complexes in Rancho Cucamonga.
The company bought Ironwood and Fairway Palms, a pair of adjoining complexes that total 496 units. The properties, sold by JP Morgan, traded hands for about $203,000 per unit.
The properties, near the Ontario Mills Mall and an area golf course, are said to be about 95% leased.
It’s the latest big-dollar deal in Riverside County for Western National. The company said in mid-December that it paid $42.2 million for Parcwood Apartments, a 312-unit apartment community in Corona.
