It’s warehousing for the win.
Kearny Real Estate Company has sold its spec industrial center development in the Inland Empire for approximately $325 million. GLP Capital Partners acquired the five-building, 730,000-square-foot Corona Lakeside Logistics Center, sources told Commercial Observer.
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Colliers (CIGI) announced the sale Monday but did not disclose the name of the buyer. The brokerage said the sale is the largest ground-lease ownership transfer in the history of the Inland Empire and one of the largest ever in Southern California. The deal pencils out to about $446 per square foot.
The Class A development is at Sherborn Street and Magnolia Avenue in Corona, Calif., in Riverside County, with immediate access to the 71, 91 and 15 freeways. The buildings range from 70,586 to 205,235 square feet in size, and it’s one of the largest speculative developments in the Inland Empire.
Kearny broke ground on the project in early 2021 and recently completed the project. Colliers structured the fixed-rate ground lease with Kearny in 2019.
The Inland Empire recorded more than $1 billion in industrial real estate sales in the first quarter, according to CommercialEdge. Average rent is $7.77 per square foot, which is 16.3 percent higher than the same period in 2022. The region’s vacancy rate is 1.7 percent.
This deal comes after GLP Capital Partners acquired a fully leased 354,810-square-foot facility in Perris, Calif., in Riverside County for $90 million.
Colliers’ Michael Kendall, Richard Schwartz, Gian Bruno, Joey Reaume and Kenny Patricia partnered to facilitate the deal on behalf of both GLP Capital Partners and Kearny.
Gregory Cornfield can be reached at gcornfield@commercialobserver.com.
