Sales  ·  Industrial

Oaktree Pays $121M for Inland Empire Industrial Development

The region, already one of the tightest industrial markets in the country, continues to draw investors

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Institutional investors have become increasingly interested in the industrial real estate opportunities in California’s Inland Empire.

Los Angeles-based Oaktree (OAK-A) Capital Management put down $121.1 million for a 457,125-square-foot development in San Bernardino, Calif., according to data provided by Vizzda. Real Estate Development Associates (REDA) sold the property at 503 East Central Avenue for approximately $265 per square foot.

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The project was completed last year on more than 20 acres. Truist Bank (formerly known as SunTrust Bank) provided $475 million in cross-collateralized debt.

The Inland Empire was one of two markets in the nation to host more than $1 billion in industrial real estate transactions in the first quarter this year, according to Commercial Edge. With a 1.7 percent vacancy rate, the region also recorded the highest annual increase in asking rents in the nation at 16.3 percent.

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