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Sierra Pacific Center, a two-building, 1,495,208-SF, Class A+ industrial facility in Fontana, CA
Fontana, CA (April 24, 2019) – Pacific Industrial, a
privately held industrial development and investment firm, has completed the
largest non-portfolio industrial property disposition in California in the past
24 months with the sale of Sierra Pacific Center, a two-building,
1,495,208 square-foot, Class A+ industrial facility in Fontana, California.
This property, which is fully leased to LG Electronics and FedEx, is one
of the first ground-up developments completed by Pacific Industrial.
The firm sold the asset to an institutional life insurance company
for a total consideration of $213.5 million.
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| Dan Floriani |
“This is a milestone transaction that represents the remarkable investment
potential of spec industrial developments when they are done well,” says Dan
Floriani, Partner and Co-Founder of Pacific Industrial.
“By developing this
asset with a long-term-hold mindset, we thoughtfully designed each detail,
resulting in a property with a proven track record of attracting major credit
tenants who value best-in-class, Class A+ features.”
Pacific Industrial developed the asset in partnership with an
international institutional investor, and continues to partner with
institutions and pension funds on additional development projects throughout
California.
“We had the opportunity to sell this 1.5 million square-foot property at a
record cap rate of 3.68%, and we are simultaneously developing 1.5 million
square feet of new best-in-class industrial properties in other Southern
California markets,” says Floriani.
“This activity
speaks to a continued institutional appetite for industrial developments where
tremendous value creation with the right developer is not only possible, it’s
been proven.”
Floriani notes that the buyer of Sierra Pacific Center will also benefit
from this value creation strategy.
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| Jeff Chiate |
“This is a substantial core investment property in the top industrial submarket in the nation,” says Jeff Chiate, Executive Managing Director of Cushman & Wakefield’s National Industrial Advisory Group, who represented Pacific Industrial in the disposition.
“The Inland Empire West market posted the most lease transactions above 500,000 square feet in the nation last year. Market fundamentals in this region continue to be exceedingly strong, with vacancy rates at a record-low 2.0 percent.
"With this knowledge and a deep expertise in investment-grade industrial property, our team recognized the true potential in the asset, and we were able to attract a competitive pool of high-quality buyers.”
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| Pacific Industrial has completed the largest non-portfolio industrial property disposition in California in the past 24 months. The above property was part of the disposition. |
“This is a stable, cash flowing asset in an exceptional location with
investment grade tenancy and key features that are unlike any other industrial
property in the Western U.S., giving the buyer a property that can be
profitably held for the long term,” notes Floriani.
Unique features built into the property include three percent skylight
coverage delivering 50 percent more natural light than the industry standard of
two percent; electric vehicle charging stations; and extremely large, 100%
concrete truck courts with depths up to 430 feet. Average truck court depth in
a Class A industrial facility is 185 feet.
Completed in 2016, Sierra Pacific Center is adjacent to Interstate 210 and
within a 20-mile radius of seven major freeways. The property is located at
5565 and 5885 Sierra Avenue in Fontana, California.
CONTACTS:
Alex Caswell /Jenn Quader
(949) 438-6262
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