- Real Estate Development Associates (REDA) plans to build another significant new industrial development in Southern California, this time in a distribution center utilized by the nation’s leading eCommerce and logistics firms.
- REDA paid $122 million for 130.2 acres in the Inland Empire and will build one phase of the South Ontario Logistics Center near the Chino Airport. The project will create 2.9 million square feet of Class A logistics space in Ontario, California, near Euclid Avenue and Merrill Avenue.
According to CBRE’s third-quarter market analysis, the vacancy rate in the Inland Empire remained at record lows. Warehouses of more than 500,000 square feet had 0% vacancy across the area, and asking rents increased 60% year over year during the third quarter.
With over 112.5 million square feet of warehouse and logistics space, the Ontario submarket has the highest inventory in the Inland Empire. Prologis is constructing a 4.1 million-square-foot warehouse for Amazon in a distribution center shared with Home Depot, Walmart, FedEx, and Kenco.
Companies Expanding Their Footprint in Inland Empire’s Industrial Market
Riverside is one of the region’s hottest submarkets. Earlier this year, Northwestern Mutual provided $124 million in acquisition financing for IDS Real Estate Group’s $225 million purchase of 1.17 million square feet of cold storage property in Riverside.
Alere Property Group also paid $199.3 million for a new 709,081-square-foot warehouse.
LA-based Dedeaux Properties Buys Industrial Property in Fontana
We also reported another property sell made in the Industrial sector of Southern California in 2022.
Dedeaux Properties expanded its footprint to the Inland Empire in Southern California. The Los Angeles-based company put down $43.7 million for a 13.6-acre industrial facility with almost 98,000 square feet in October 2022. The distribution facility was owned by BWP Inc., affiliated with the building’s user, Barrette Outdoor Living.
Ottogi America Buys Inland Empire Warehouse for $56M
Ottogi America, a distributor of curry, ramen, noodles, sauces, and other Korean cuisine items, purchased the 106,072-square-foot property in the city of Ontario from the Winsford Corporation. According to Vizzda statistics, the home sold for $56 million, or a stunning $528 per square foot.
REDA Real Estate Complex Associates (REDA) intends to construct yet another significant new industrial development in Southern California. The project will create 2.9 million square feet of Class A logistics space in Ontario, California. In a distribution center shared by Home Depot, Walmart, FedEx, and Kenco, Prologis is building a 4.1 million-square-foot warehouse for Amazon.