TA Realty Unloads 272,120-Square-Foot Warehouse for a Big Profit After 4 Years

Seller acquired the building for a fraction of the price

reprints


Despite a global pandemic, soaring inflation, rising interest rates and a national economic downturn, the returns for Southern California’s industrial assets remain staggeringly high.

New York Life Insurance is set to pay $84.2 million to acquire a modest 272,120-square-foot warehouse in the Inland Empire from TA Realty, according to data provided by Vizzda. That’s a 180 percent premium, or about 2.8 times as much as the same property traded for just four years ago.

SEE ALSO: Distress Looms Over U.S. Offices Heading Into Summer: Report

At $309 per square foot, the deal also tracks above the average sales price of $275 per square foot in the Inland Empire this year, per Commercial Edge’s most recent industrial market report. Neither party immediately responded to requests for comment.

The warehouse was built in 2006 on 13 acres at 3350 Enterprise Drive in Bloomington, Calif., at the corner of Riverside Avenue and Agua Mansa Road. Property records show TA Realty acquired the asset for $30.1 million in 2019 in an apparent sale-leaseback deal with the current occupant, Cooper Lighting Solutions.

The Inland Empire saw $1.7 billion in industrial real estate sales in the first four months of the year, the most in the country, and more than twice the volume as the second-place market. More recently in Bloomington, Brookfield provided $137.8 million for Howard Industrial to acquire nearly 90 acres of land, which is expected to be the site of its next warehouse development.

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