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A 53-acre, fully entitled industrial development site in the Inland Empire city of Eastvale was acquired by Orbis Real Estate Partners and Chase Partners. The property, called The Campus, was sold by Preeminent Investment Corp.

The new owners will be developing a 10-building, 715k sf industrial project valued at more than $100 mil. The project will be built in one phase with construction starting immediately. More than 50 percent of the space is already spoken for by various tenants and users.

CBRE’s Barbara Emmons, Darla Longo, Brett Hartzell, and Michael Kendall, the firm’s National Partners-West Coast Team, represented Investment Corp in the transaction.

Eastvale, located just south of Ontario, sits in California’s Inland Empire where industrial vacancies closed the second quarter at 3.7 percent, a level not reached in the Inland Empire since late 2006 to early 2007, according to CBRE’s second-quarter report. The strong demand for space has kicked up development, which averaged 17.3 msf in the last two years, a significant jump when compared with the average 10.6 msf the eight quarters prior. Construction activity is expected to remain strong throughout 2016 and well into 2017, since many developers are pushing to finish all large developments by the end of 2017, according to CBRE research.

“Demand for new, state-of-the-art product such as the Providence Center is stronger than ever,” said Emmons. “The Inland Empire is a near-perfect strategic location for any user with same-day delivery and similar logistics needs.” Rents in the Inland Empire continued to grow due to rising industrial employment, pent-up demand for industrial space and consumer spending. Year over year, average asking lease rates increased by 23 percent, marking the largest year-over-year growth since the previous peak in 2006 and 2007.

“Already more than half of this new industrial project is spoken for,” said Longo. “It speaks to the tremendous need for space in this area. The Greater Los Angeles region is a great strategic hub due to its proximity to the ports, and it is a great consumer hub. About 50 percent of all goods coming into our local ports stays in the region. That means more product is being stored and sold locally. That bodes well for industrial markets like the Inland Empire.”

TWO BUILDINGS ALREADY PRE-SOLD FOR $12.74 MILLION

NEWPORT BEACH, CALIF. – Orbis Real Estate Partners, a commercial real estate development and investment firm based in Newport Beach, Calif., announced the groundbreaking for a 136,790-square-foot, pre-sold development in Ontario, Calif.

Orbis Real Estate Partners broke ground late last month on the Orbis Business Center, which will offer three free-standing Class A industrial warehouse/distribution buildings totaling 136,790 square feet on 6.26 acres. The site is in close proximity to Interstates 10 and 15 with direct access from Milliken Avenue.

The project was approximately 85 percent pre-sold prior to the closing of the land sale, with two of the buildings sold earlier this year for a total of $12.74 million. Orbis purchased the land in April from the Kaplan Family Trust for $3.75 million.

The first pre-sold building, located at 305 N. Sequoia Ave., offers 90,711 square feet and has been sold to O’Green Corp. for $9.52 million. Tread Line Tires, a subsidiary of O’Green Corp., will be the owner/user of the building which will feature 30-foot clear height, a secured truck court and 4,000 square feet of office space.

The second pre-sold building, located at 301 N. Ponderosa Ave., has been sold to Paper 360 Inc. which plans to use the building for its own operations. The building will have approximately 25,670 square feet, including 2,500 square feet of office space, 24-foot clear height and a secured truck court. The building was sold for $3.22 million.

The third building is located at 201 N. Ponderosa Ave. and will be approximately 20,400 square feet, of which 2,500 square feet will be demised into office space, along with 24-foot clear height and a secured truck court. The building site is currently being marketed for sale as an owner/user property with an asking price of $145 per square foot.

All three buildings will be developed in one phase with a total development value estimated at $15.7 million.

“The western Inland Empire submarket currently lacks a supply of industrial buildings less than 100,000 square feet, triggering strong demand from owner/users and other tenants,” said Thomas Money, managing partner for Orbis. “Orbis will further establish its foothold in the western Inland Empire submarket with the delivery of three new buildings to the marketplace – all under 100,000 square feet – in the first quarter of 2016.”

The Orbis Business Center was designed by HPA Architecture in Irvine, Calif., with general contracting services being provided by KPRS Construction Services in Brea, Calif. Expected completion date for the buildings is fourth quarter 2015. Financing for the project was provided by First Bank.

Frank Geraci and Juan Gutierrez of Voit Real Estate Services’ Ontario office represented Orbis in the transactions with O’Green Corp. and Paper 360. O’Green represented itself in the purchase with John Seoane from Lee and Associates’ Ontario office representing Paper 360.