Another Big Warehouse Redevelopment Sells in Inland Empire
Link Logistics and Western Realco acquired the 16.45-acre industrial site for $61.8 million
Investors and developers are eagerly snatching up warehouse development opportunities in Southern California’s Inland Empire, which doesn’t have enough space to meet demand.
A partnership between Link Logistics and Western Realco acquired a 16.45-acre industrial redevelopment site at 1375 Magnolia Avenue in the city of Corona. About 7 miles away in the same city, Newport Beach-based North Palisade Partners also recently announced the development of a new 205,000-square-foot Class A facility to tap into the same demand Link and Western Realco are looking to meet.
Cushman & Wakefield (CWK) announced the deal and represented the seller of the Magnolia property, McWane, one of the world’s largest manufacturers of iron waterworks and plumbing products. The brokerage did not reveal the sales price, but property records show the site traded for $61.8 million.
Link and Western Realco could potentially build two brand-new, Class A industrial buildings totaling more than 300,000 square feet of warehouse space. The site currently includes multiple older industrial structures originally built in the mid-1900s that would be demolished.
C&W’s Jeff Chiate said the location has considerable barriers to entry but the site offers a good redevelopment play considering its proximity to the Interstate 15 and State Route 91 Highway interchange, as well as the ports and Ontario International Airport.
“Demand for high-quality industrial product remains robust in Greater Los Angeles, and particularly the Inland Empire, while supply remains very constrained,” Chiate said in a statement. “The redevelopment of this property is greatly needed to best cater to the modern space and functionality needs of industrial users.”
C&W’s Rick Ellison said the rise of e-commerce is altering demand for industrial real estate.
“Same-day and next-day delivery expectations are increasing demand for warehouses closer to customers. Corona is uniquely positioned to benefit from this trend,” Ellison said.
Chiate, Mike Adey and Brad Brandenburg of C&W represented the seller. Ellison and C&W’s Brett Lockwood also advised the seller in the deal and will handle leasing. It wasn’t clear who represented the buyers.
Gregory Cornfield can be reached at email@example.com.