An industrial real estate firm is putting down $2.2 million per acre for a plot of land in Southern California’s Inland Empire, where it will add another logistics development to the nation’s top warehouse market.
Alere Property Group paid $38.9 million for 17.4 acres of industrial zoned land in Fontana, according to NAI Capital, which represented the buyer. Next year, Alere plans to develop two Class A distribution buildings with more than 350,000 square feet of space called Fontana Corporate Center on the property.
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The vacant site at 13592 Slover Avenue is just off Interstate 10.
“Demand for quality industrial distribution facilities and industrial land remains strong, which in turn has sustained values for both Class A bulk distribution facilities and land,” NAI’s Richard Lee said in a statement. “Rental rates, sales prices and land values continue to be solid.”
In addition to the NASCAR racetrack sale last week, Fontana has seen some of the biggest deals in the Inland Empire over the past few months. Earlier this year, Rexford put down $365 million for a 1.1 million-square-foot warehouse on Production Avenue in Fontana, and, in late December, BentallGreenOak paid $127 million for a 380,650-square-foot property on Philadelphia Street. Last fall, Dedeaux Properties acquired 7.11 acres in the Inland Empire for $33.6 million, equal to about $4.7 million per acre.
Along with Lee, NAI Capital’s Nicholas Chang, Justin Kuehn and Sione Fua represented both the buyer.
Gregory Cornfield can be reached at gcornfield@commercialobserver.com.
