Another warehouse tenant has capitalized on its property in the country’s hottest market for manufacturing and distribution space.
Nuveen Real Estate paid nearly $60 million for a fully occupied industrial property in a leaseback deal with the tenant, Myers Power Products, in Southern California’s Inland Empire. The company manufactures engineered-to-order power distribution equipment and signed a new, five-year, triple-net lease, according to DAUM Commercial Real Estate Services, which brokered the deal.
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Records filed in late July show Nuveen paid $59.55 million for the 236,700-square-foot property at 2950 East Philadelphia Street in the city of Ontario, Calif., in San Bernardino County. It’s near Ontario International Airport in the heart of a large industrial district.
“The tenant invested significant capital in the property over the last 12 years of ownership and occupancy, so it is ideally suited to facilitate the company’s full in-house manufacturing capabilities, including metal fabrication, state-of-the-art paint systems, assembly, integration, and testing,” DAUM’s Chris Migliori said.
E-commerce has famously thrived since the pandemic hit, causing direct industrial vacancy rates in the Inland Empire to tighten to around 2 percent in the second quarter of this year. Market demand has outpaced supply as any new construction is quickly leased up.
Meanwhile, Nuveen has been active around the country with different asset types, ranging from a new esports studio in L.A. to life sciences projects in New York City.
Gregory Cornfield can be reached at gcornfield@commercialobserver.com.
