Headwear Supplier Signs Long-Term Lease for Robot-Equipped Facility in SoCal
Affinius Capital and McDonald Property Group expect to complete the automated facility by summer
By Nick Trombola January 30, 2025 5:26 pm
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A 2 million-square-foot industrial development adjacent to an airport in Southern California’s Inland Empire has found its first tenant ahead of its expected delivery later this year.
Otto International has signed a 254,677-square-foot lease at The Hub, a 200-acre, master-planned logistics complex next to Ontario International Airport in Ontario, Calif. A partnership between Affinius Capital and McDonald Property Group are the owners and landlords of the property. The four-building first phase of the development is expected to finish construction by this summer. A five-building second phase will bring the full footprint of the complex to nearly 4.3 million square feet, according to general contractor Premier Design + Build Group.
Otto Cap, the headwear wholesale supplier affiliate of Otto International, will use the space at 3551 East Jurupa Street. Otto’s long-term lease for the property stretches for nearly 13 years.
CBRE (CBRE)’s Darla Longo, Barbara Perrier, Walt Arrington, Joey Sugar and Joe Werdein represented the landlords and announced the deal, but declined to disclose asking rents. Savills’ Dylan McDonald and Dillon Dummit represented Otto International.
“Our new robotic automated facility at The Hub will allow us to streamline our West Coast logistical hub and distribution point as the premier tenant in this amazing facility,” Razgo Lee, CEO of Otto International, added in a statement.
The partnership between Affinius (then under the arm of its parent company USAA Real Estate) and McDonald in late 2021 landed a 55-year lease with Ontario International Airport to develop the full 200 acres for the industrial park. The airport valued the deal at $625 million at the time, according to its website.
The Inland Empire, together with Los Angeles County, make up the nation’s top market for industrial real estate. But a building boom after the pandemic led to consecutive quarters of rising vacancy and availability rates and softening asking rents.
Nick Trombola can be reached at ntrombola@commercialobserver.com.
