Inland Empire Industrial Site Flips at 23% Increase
By Greg Cornfield March 1, 2023 5:55 pm
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A relatively small industrial business park in California’s Inland Empire has traded hands again, this time for about 23 percent more than it did in September 2021.
MIG Real Estate acquired a 156,717-square-foot, seven-building industrial site called Gifford Business Park in San Bernardino for $26 million, according to Colliers (CIGI). Property records show the seller, Positive Investments, acquired the site for $21.1 million about 17 months ago.
“We executed our business plan of addressing the deferred maintenance on the property, completing capital improvements, stabilizing the rent roll, and exiting in under 18 months,” Srinivas Yalamanchili, principal at Positive Investments, said in a statement.
The 11.5-acre property at 750-760 East Central Avenue and 765-791 South Gifford Avenue comprises 78 units across seven buildings, with units ranging from 910 to 19,302 square feet, and it’s described as a strategic investment opportunity with ample development potential. It’s 93 percent leased to multiple tenants.
It’s in the fastest-growing industrial market in the nation, where property rents are increasing an average of 28 percent upon lease renewal. Approximately $5 billion in warehouse sales closed in the Inland Empire in 2022.
Colliers’ Christopher Smith and Andrey Mindirgasov brokered the Gifford Business Park deal on behalf of MIG. Alan Pekarcik of Kidder Mathews represented Positive Investments.
“Situated in a highly sought-after market surrounded by institutional-grade distribution centers, Gifford Business Park offered a rare investment opportunity to capitalize on the increasing market fundamentals,” Smith said. “We are pleased with the successful result for MIG, who have acquired a stable cash-flowing multitenant asset with additional upside via below-market rents.”
Gregory Cornfield can be reached at gcornfield@commercialobserver.com.
