Sales  ·  Industrial

Exeter Sells 600K-SF Warehouse for $78M

Societe General provided $70M for the property

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The pace of industrial sales might be slowing nationally, but not, it appears,  in Southern California.

An entity tied to real estate investment manager EQT Exeter on April 7 unloaded a 596,090-square-foot warehouse in the Inland Empire for $78 million, according to data provided by Vizzda. The current lessee, High Tech Logistics, acquired the Alessandro Commerce Center in Riverside, Calif., one of the top cities in the region for logistics and distribution real estate.

SEE ALSO: Planned Logistics Facility Sells for $99M in Southern California

Societe General provided $70 million for the 36-acre property at 14063 Brown Street, just west of the Alessandro Boulevard exit on Interstate 215. Other recent deals in Riverside include Union Bank’s $4.3 million-per-acre deal for an empty plot of land, and BentallGreenOak’s $120 million trade for a 361,346-square-foot development.

The average industrial rent in the Inland Empire has increased 291 percent since the Great Recession in 2009. That growth encouraged significant development and continues to drive sale prices and volume, according to a report released recently by NAI Capital. The average sale price per square foot hit a new record high of $309 in the first quarter of 2023, up 25 percent from a year ago.

“Peak pricing and rising availability of space will shape the industrial market moving forward,” the report predicted.

The vacancy rate registered a low 2.8 percent, but that is a full percentage point higher than the previous quarter, and 160 basis points above a year ago because developers added 8.6 million square feet in the first three months of the year. Another 30.9 million square feet of industrial space is under construction.

Gregory Cornfield can be reached at gcornfield@commercialobserver.com.