Ares Management Pays $320 a Foot for SoCal Warehouse
Sale is a 24 percent increase on the price it sold for in March 2022
By Greg Cornfield May 12, 2023 3:30 pm
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Ares Management (ARES) is tapping into the nation’s top industrial market with the acquisition of a 5-year-old warehouse in Southern California’s Inland Empire.
The investment firm paid $33.4 million for the 104,282-square-foot development in Moreno Valley, Calif., according to data provided by Vizzda. That’s a 24 percent increase on the price it sold for in March 2022.
The latest deal is also equal to about $320 per square foot, about 27 percent higher than the $252 per-square-foot average sales price for the region so far in 2023, which is fourth most expensive in the nation, according to Commercial Edge’s first-quarter report. The national average is $134 per square foot.
Another major investment manager, Nuveen, sold the warehouse at 23900 Brodiaea Avenue, leased to United Material Handling. It was built on 6.7 acres at the northwest corner of Heacock Street and Cactus Avenue in 2018.
The Inland Empire was home to approximately $1.02 billion in industrial real estate sales in the first quarter, the second-largest volume nationwide, according to Commercial Edge. With a 1.7 percent vacancy rate, the region recorded the highest annual increase in asking rents in the nation through March at 16.3 percent.
Gregory Cornfield can be reached at gcornfield@commercialobserver.com.
