Oaktree Capital Management Acquires Inland Empire Industrial Development for $121M

By: Sharjeel Sohaib

• 

May 29, 2023

 • 

Utilize Our Platform

  • Oaktree Capital Management, an institutional investor based in Los Angeles, has acquired a 457,125-square-foot industrial development in California’s Inland Empire for $121.1 million.
  • The Inland Empire, encompassing areas such as San Bernardino and Riverside counties, is a thriving market for industrial real estate investment.
  • Its strategic location near major population centers and excellent transportation infrastructure make it an ideal logistics and distribution hub, attracting investors looking to capitalize on the region’s growth potential.

Oaktree Capital Management, a Los Angeles-based institutional investor, has recently invested in the booming industrial real estate market of California’s Inland Empire. The company acquired a 457,125-square-foot development in San Bernardino for a staggering $121.1 million, indicating the growing interest of institutional investors in the region’s industrial opportunities.

Oaktree’s Acquisition

The property, located at 503 East Central Avenue, was sold by Real Estate Development Associates (REDA) at a rate of approximately $265 per square foot. The development attracted Oaktree’s attention due to its promising potential and reaching its completion last year on over 20 acres of land. Trust Bank (formerly SunTrust Bank) provided a substantial cross-collateralized debt of $475 million to help secure its acquisition.

Inland Empire’s Industrial Real Estate Market 

The Inland Empire, encompassing areas like San Bernardino and Riverside counties, has become a prominent industrial real estate investment destination. In the first quarter of this year, the region was among the two markets nationwide to witness industrial real estate transactions exceeding $1 billion, according to Commercial Edge.

Strong Market Fundamentals

One of the key factors driving interest in the Inland Empire is its impressive market fundamentals. With a low vacancy rate of 1.7 percent, the region has recorded the highest annual increase in asking rents, reaching an impressive 16.3 percent. These figures illustrate the area’s strong demand for industrial space and its potential for investors to achieve attractive returns.

Location Advantage

The Inland Empire’s strategic location is crucial to its attractiveness to investors. Situated near the major population centers of Los Angeles and Orange County, the region offers excellent connectivity and access to major transportation infrastructure, including major highways, rail networks, and airports. This advantageous positioning positions the Inland Empire as an ideal logistics and distribution hub, serving the growing e-commerce sector and facilitating efficient supply chain operations.

Growth Potential and Future Prospects

The industrial real estate market in the Inland Empire is expected to continue thriving in the coming years. The region’s favorable market conditions, the continuous expansion of e-commerce, and increased demand for last-mile logistics facilities make it an attractive investment opportunity for institutional investors like Oaktree Capital Management. Additionally, the Inland Empire’s relatively lower land and operating costs than the other major Southern California markets add to its appeal.

Conclusion

Oaktree Capital Management’s recent acquisition of substantial industrial development in San Bernardino highlights the increasing interest of institutional investors in California’s Inland Empire. The region’s robust market fundamentals, low vacancy rates, and strategic location make it an appealing industrial real estate investment destination. 

As the Inland Empire continues to witness rapid growth and demand for logistics and distribution space, it is poised to provide lucrative opportunities for investors seeking returns in the dynamic Southern California market.

0 Comments

Submit a Comment

Connecting you with the best startups, people & events in the Inland Empire.

Support Startup News & Media!


Enjoying the startup news & media? Support us!

We have big plans, and we need your help!

Startempire Wire is a community of people working together to promote innovation, entrepreneurship, and investment in the Inland Empire. We provide resources and connect people with the startup culture.

We believe that the Inland Empire has all of the ingredients for success. This region just needs a platform to show the world what it can do – And this is exactly what Startempirewire.com is doing. Our goal is to act as a megaphone to connect the dots between the best startups, events, and people in the Inland Empire.

We have big plans, and we need your help! If you are passionate about creating a thriving local startup ecosystem, then we would like to invite you to join in contributing to the community by supporting us. You can do that by supporting us financially or by being an active contributor. In return, we will give you (depending on sponsorship level) free access to our content, other level based perks &  the opportunity to connect with a network of passionate people working to build a better future for all of us.

We cover the good and the bad of entrepreneurship, startups & business events; we do it with passion and purpose. If you like what we do, support us & please consider becoming a patron. Your support is essential for independent local startup media to survive & thrive.

You can make a regular one time donation to become a sponsor at any level, or you can choose to become a monthly or event sponsor.  Every little bit counts! Thank You

Verious B. Smith III

Founder, Startempire Wire

Related Articles

OASIS Challenge: Showcasing Innovation in Sustainability

OASIS Challenge: Showcasing Innovation in Sustainability

RIVERSIDE, CA – The Southern California OASIS™ Challenge Pitch Finals, a much-anticipated event in the sustainability sector, is set to take place, spotlighting six innovative Inland Empire companies. These finalists, vying for $100,000 in grants and invaluable...

Riverside’s Ambitious Project: Building a Comprehensive Dat . . .

Riverside’s Ambitious Project: Building a Comprehensive Dat . . .

RIVERSIDE, CA – The City of Riverside, nestled in the heart of Riverside County, has embarked on an innovative environmental project. With a $1 million grant from the Forest Service, the U.S. Department of Agriculture, and the Community Forestry Reduction Act,...

Stay Up On Startempire News

Access Premium Content

Startempire Wire premium content access is free during the beta period of our  website.  Join during beta and get a grandfathered discount when we launch.

$5 for first month then $15 per month

Get Every Update

Would you like to receive Startempire Wire updates in your inbox? Subscribe below!

"*" indicates required fields

This field is for validation purposes and should be left unchanged.

Follow Us

Follow Startempire Wire on other social media channels.

0
My cart
Your cart is empty.

Looks like you haven't made a choice yet.