Friday, January 16, 2015

Stillwater Investment Group Acquires 34,500-Square-Foot Office Building in Ontario, CA

1801 East Holt, Ontario, CA                                            

John Drachman
IRVINE, CA --  Leveraging its experience in the greater Ontario market, Stillwater Investment Group, an Orange County-based real estate firm focused on pursuing opportunistic real estate investments, has announced acquisition of a value-add, two-story, 34,500-square-foot office building in the City of Ontario.

 Built in 2007, the property, located at 1801 E. Holt, is currently unoccupied. Stillwater plans to take advantage of limited new development and the diminishing blocks of space in the market for the 20,000-square-foot and up size range, noting that the acquisition timing is good based on a strong resurgence of office leasing and investment activity occurring in the region.

Stillwater purchased the property from Rialto Capital for $2.35 million. Phil Woodford, Senior Vice President with CBRE, represented both the buyer and seller. The firm plans to complete a number of interior improvements to the property in preparation to sell or lease.

“This property fits our acquisition strategy perfectly. I’ve had success in Ontario working on other properties and this asset provided the opportunity to begin building Stillwater’s portfolio. It’s indicative of the types of opportunistic, value-add properties that we are seeking to acquire as we move forward,” said John Drachman, President of Stillwater Investment Group. Drachman started Stillwater in 2014.

Phil Woodford
Drachman added that he has seen firsthand the recent gains in the recovering Ontario office market.

Woodford also cited that that with no new office product construction planned in the Inland Empire for a considerable amount of time, landlords will be able to take advantage of the decreasing availability of space.  

He also shared that the increased frequency of investment sales has added to the further stabilization of strong office corridors such as Ontario. 

“Near the close of 2014, we had a user acquire an entire six-story, 144,000-square-foot Ontario office building that had been vacant. That kind of tenant activity coupled with new investors such as Stillwater entering the market helps to create important momentum at just the right time in the cycle,” added Woodford.

The acquired property is located in Ontario’s primary business district, approximately one block from the Ontario Convention Center with immediate access to the 10 and 15 freeways and Ontario International Airport.

Drachman shared, “Stillwater Investment Group plans to acquire additional value-add real estate opportunities throughout Southern California. I believe that an improving economy along with improving fundamentals will provide many sources for future acquisitions.”

 For a complete copy of the company’s news release, please contact:

Darcie Giacchetto
Spaulding Thompson & Associates

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