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6/20/14
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A 161.6k sf industrial property in Rancho Cucamonga recently traded hands in a deal valued at $14.7 mil, or around $91/sf. The property, located at 9449 Eighth St, north of I-10 and west of I-15, was acquired by the David Liu & Lisa Zhou Trust on behalf of a furniture distribution company that will occupy the building.
Built in 2006 on 8.25 acres, the state-of-the-art distribution facility features 34 dock-high loading doors, with more than 20k sf of office space. It also has dual-access truck egress and parking for 88 semi-trailers in an electronically monitored and fenced enclosure for round-the-clock security, parking for 56 automobiles, and multiple skylights. In addition to its nearly three dozen loading docks, it also has two ground-level loading doors.
“Nobody who is familiar with this market will be surprised that we have crossed the $90-plus per-square-foot price threshold for quality industrial buildings since demand continues to outstrip supply in every submarket of the Inland Empire and beyond," said Colliers' Executive Managing Director John Hollingsworth. "Developers who were stalled by the recession are picking up the pace of new construction, but the pipeline of new buildings is slower than market demand and that has created opportunities to raise prices."
“In a very tight West Inland Empire industrial market with low vacancy rates, the price paid by this user set another high water mark,” said Senior Vice President Mark Zorn, who represented the seller, the Charles & Bryan KC Pelle Trust. “The fact that this new owner-user came from the Mid-Counties area is another significant part of this transaction since it shows how difficult it is to find suitable properties in that closer-in market.”
According to Colliers’ latest research reports, the vacancy rate in the West Inland Empire market where this building is located is 3.3 percent and declining as the close of the second quarter approaches. At the same time, developers are racing to slake the growing demand exemplified by this transaction. Particularly acute is the lack of suitable distribution facilities in the closer-in markets that make up what Zorn called the “Mid-Counties” market, or Santa Fe Springs, Commerce and Vernon.
“It’s significant to note that this structure was built with all of the most sophisticated security functions that are important to companies that have a constant stream of goods coming in and going out,” Zorn said. “As a result, the building features card-key security access, flat-screen security monitors linked to high-resolution cameras, electronically operated wrought-iron gates and other security features.”
Ashwill Associates represented the buyer in the transaction.
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