Prologis, Stirling Development Join Forces on Inland Empire Projects
Prologis has entered into a joint venture with Stirling Development in which the logistics real estate giant will take over as a 50 percent capital partner in the Stirling Capital Investments, according to a joint release. The partnership comes on the heels of Prologis’ acquisition of DCT Industrial Trust for $8.5 billion last August, which included taking over 7.5 million square feet of development, redevelopment and value-add projects as well as 305 acres of land in pre-development.
Under the new partnership, Prologis and Stirling will continue to build out the Southern California Logistics Airport (SCLA) in Victorville, Calif., which is in the Inland Empire, east of Los Angeles County.
“We are excited to begin our relationship with Prologis and believe their involvement will further enhance our marketability at SCLA,” Brian Parno, the COO of Stirling Development, said in a statement. He added that the partners plan to advance build-to-suit developments at the project, customized for Prologis’ existing clients as well as manufacturers and distributors.
Parno told Commercial Observer that per the partnership, Prologis’ role includes taking on half the costs as well as 50 percent ownership of the assets and undeveloped land held by Stirling Capital Investments. Stirling Development will remain the developer and asset management partner on SCLA, while both Stirling and Prologis will be active in its strategic planning. Since the project includes undeveloped land, the costs have yet to be determined.
Kim Snyder, the president of the west region for San Francisco-headquartered Prologis, said in the release that “Southern California is one of the most dynamic industrial real estate markets in the country given the growth of e-commerce and the limited number of large sites with logistics infrastructure.”
According to a CBRE report last month focused on the 100 largest warehouse deals of 2018, the Inland Empire was tops, accounting for 20 of the mega deals totaling 18.9 million square feet of warehouse inventory.