Pacific Industrial Sells Fully Leased Property in Inland Empire for $213.5M
FONTANA, CALIF. — Pacific Industrial has sold Sierra Pacific Center, a two-building, 1.5 million-square-foot industrial property in Fontana, about 50 miles east of downtown Los Angeles in the Inland Empire. The industrial development and investment firm sold the asset for $213.5 million to an unnamed institutional life insurance company.
Sierra Pacific Center was completed in 2016 and was fully occupied by LG Electronics and FedEx at the time of the sale. The property is situated at 5565 and 5885 Sierra Ave., adjacent to California Highway 210 and within 20 miles of seven major highways including Interstates 215, 10 and 15.
Amenities include electric car charging stations; 3 percent skylight coverage, as where the industry average is 2 percent; and truck courts up to 430 feet deep, as opposed to the Class A average of 185 feet.
This transaction represents the largest, non-portfolio sale by dollar value in California over the past 24 months.
“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-plus features.”
Jeff Chiate of Cushman & Wakefield represented the seller in the transaction.
“The Inland Empire West market posted the most lease transactions above 500,000 square feet in the nation last year,” says Chiate. “Market fundamentals in this region continue to be exceedingly strong, with vacancy rates at a record-low 2 percent.”
Pacific Industrial is a privately held firm based in Southern California. Pacific Industrial developed Sierra Pacific Center in partnership with an international institutional investor is currently developing several million square feet of industrial space with other institutions and pension funds. It has closed more than $1 billion in transactions since 2012.
— Alex Tostado