SoCal Warehouse Sells for $112M — Almost Double Its 2021 Price
Sellers bought the warehouse for $57.5 million less than two years ago
By Greg Cornfield July 10, 2023 1:25 pm
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The owners of a 333,572-square-foot warehouse have sold the asset for nearly double what they paid for it just two years ago, adding to the high sales volume in Southern California.
MDH Partners paid $112.3 million, or $337 per square foot, for the Harvill Avenue Logistics Center in the Inland Empire, according to data provided by Vizzda. The sellers, Blumenfeld Development Group, CH Realty Partners and Declaration Partners paid $57.5 million to acquire the building in 2021, according to media reports.
MDH Partners announced the deal but declined to disclose the sale price. The firm said, too, that the warehouse is fully leased to a global health care company, but declined to disclose the name of the tenant. A source familiar with the property told Commercial Observer that Cypress Hill Medical Supply leased the building.
Packable, the parent company of Amazon (AMZN) seller Pharmapacks, an e-commerce logistics company, had signed a 12-year lease for the full property, according to a press release from two years ago. However, Packable started laying off employees and ceasing operations last summer, reports say, and no longer leases Harvill Avenue Logistics Center.
Rockefeller Group developed the property in 2021 on almost 17 acres at 21500 Harvill Avenue in the city of Perris in Riverside County.
MDH Partners’ Georga Rowe and Houston Hawley sourced the deal and led the acquisition process. Eastdil Secured represented the seller.
“We expect the Inland Empire to remain resilient against economic volatility, and we will continue to seek high-demand assets across markets that demonstrate strong fundamentals and durability,” Rowe said in a statement.
Harvill Logistics Center increases MDH Partners’ California footprint to more than 460,000 square feet. In October 2021, the Atlanta-based company acquired two leased industrial business parks in Riverside — MS Northgate and MS Van Buren I — totaling 210,657 square feet. Since January, MDH has acquired nearly 5 million square feet of industrial assets throughout the U.S.
Gregory Cornfield can be reached at gcornfield@commercialobserver.com.
UPDATE: This story has been updated since publication to include CH Realty Partners and and Declaration Partners.
