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1/09/23
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MGR Real Estate has purchased Ontario Airport Tower, a 147.7k sf, Class A office tower in Ontario, for $39 mil, or $264/sf. The six-story, LEED-Silver Certified building is located at 2855 East Guasti Rd, east of Archibald Ave and just south of I-10.
The building was 89% leased at the time of sale to high-quality, stable tenants. Built in 2008, the property offers one of the highest overall parking ratios of any Class A office building in the area and features a thoughtfully designed lobby with travertine flooring, stainless steel and glass and wood accents.
Ontario Airport Tower’s central location offers high corporate identity frontage on the I-10 freeway and immediate access via the Archibald Avenue on/off ramps. The Inland Empire has a strategic location with the region’s largest industrial base which, during the last growth period, helped support a rapid expansion of the local office market sector. The property is also proximate to the Ontario Mills Mall and surrounding restaurants, banks and retail storefronts.
Newmark Co-Head, U.S. Capital Markets Kevin Shannon, Executive Managing Directors Ken White, Brunson Howard and Paul Jones and Senior Managing Director Michael Moore represented the private seller. Newmark Managing Director Brian Bowis secured financing for the buyer.
“The Inland Empire office market has clearly outperformed both the Orange County and Los Angeles office markets since the onset of the pandemic, with a current healthy vacancy rate of approximately 10% and extraordinary year-over-year job growth of 5.7%,” said Shannon. “Ontario Towers is arguably one of the best office buildings in the submarket and has consistently outperformed the rest of the submarket.”
Office rent growth in Ontario has leveled out after six consecutive quarters of gains, with average asking rent up 3.9% over the past year. Vacancy fell 20 basis points from last quarter to 10.5%, the lowest level in two years. Net absorption remained in positive territory with 77.8k sf of gains, according to Newmark Research.
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