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9/29/16
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Arrow Business Park, a seven-building, 136.8k sf, multi-tenant industrial/flex business park in Rancho Cucamonga, sold for $15.4 mil, or $113/sf. The business park consists of 69 units ranging from 240 sf to 12.7k sf in size.
Built in 1988, Arrow Business Park is located at 9047-9087 Arrow Route, close to the I-210, I-15, and I-10 freeways for efficient distribution and transportation uses. The property features ample parking, 16’ to 24’ warehouse clearance ceilings, ground level loading, and a 35 percent office build-out. Arrow Business Park was 76 percent occupied at acquisition.
The buyer, Focus Real Estate, plans to upgrade the property, reposition the vacant space through a series of capital improvements, lease the vacant space, and bring rents to market upon tenant rollover in order to deliver strong risk-adjusted returns to its investors. Frank Geraci and Juan Gutierrez of Voit’s Inland Empire office and Mike Bouma of Voit’s Orange County office worked together to represent Focus Real Estate and the seller, Essex Arrow LLC, in the transaction.
“The Inland Empire is one of the strongest industrial markets in the nation,” comments Geraci. “Vacancy rates in the prime Inland Empire West submarket finished the second quarter at 3.75 percent, and average lease rates jumped to $0.56 per square-foot, surpassing pre-recession peak rental rates for the first time ever. Based on these strong market fundamentals, the Arrow Business Park is extremely well-positioned to capitalize on rising rental rates and the growing demand for quality industrial space throughout the region.”
Geraci explains that no new multi-tenant industrial business parks have been built in the last 15 years in the local market, adding that high land and construction costs have significantly limited the available supply of new multi-tenant industrial product in this region.
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