This Inland Empire Warehouse Sold for a 170% Premium
BentallGreenOak agreed to pay $120 million to acquire the 361,346-square-foot development
By Greg Cornfield January 26, 2023 5:35 pmreprints
The numbers coming from warehouse investment sales in Southern California’s Inland Empire are eye-popping, now with a distribution facility selling for 170 percent more than it did less than two and a half years ago.
An entity managed by BentallGreenOak and its Institutional Logistics Partners closed a $120 million deal to acquire the 361,346-square-foot development in Riverside, Calif., equal to about $332 per square foot. The seller, Loctek Inc., a Chinese-based office furniture manufacturer, last acquired the warehouse for $44.4 million in September 2020.
It’s unclear if the deal was a sale-leaseback. Neither BentallGreenOak nor Loctek immediately responded to requests for comments.
The facility is on 18.2 acres at 6075 Lance Drive and is part of the larger Dedeaux Sycamore Canyon Distribution Park.
CommercialEdge reported Thursday that there was $88 billion in industrial sales nationwide in 2022, including $5 billion in the Inland Empire. U.S. investment sales averaged $132 per square foot last year, while deals in the Inland Empire averaged $289 per square foot.
National in-place rents averaged $7.03 per square foot to end 2022, up 6.3 percent year-over-year as demand continued to outpace supply. Compare that to $8.05 per square foot in the Inland Empire, which is 14.2 percent higher than a year ago, according to the report.
Gregory Cornfield can be reached at email@example.com.