Real Estate Market Looking up in Southern California
Colliers spearheads two major industrial transactions in recent months:
The commercial real estate industry has been hit hard by the economic downturn, with little to no investment activity, companies going out of business and tenants staying put until an economic recovery appears in plainer site. Several transactions that have recently taken place in Southern California may signal what could be the start of the commercial real estate recovery.
Colliers has been at the forefront of this turnaround in several recent deals. Among the transactions paving the way for a more optimistic outlook in the industry and for the Southern California market are the sale and lease of 21.6 acres of land in Anaheim and a 645,000 square-foot lease in Mira Loma.
In what could be the largest transaction to take place in Southern California in 2009, Birtcher Development & Investments, in partnership with Cornerstone Real Estate Advisers, LLC, acquired a 21.6-acre site in Anaheim. The firm plans to develop a build-to-suit facility for Northgate Gonzales Markets, a family-owned Latin-American market, which signed a 15-year lease on the property.
Birtcher and Cornerstone were represented by Clyde Stauff, senior vice president in Colliers International’s Irvine office and Senior Vice Presidents Patrick Remolacio and Bret Hardy with Colliers Integrated Real Estate Solutions (IRES) group.
Development is scheduled to commence in the fourth quarter of 2009 for the 375,000 SF warehouse and distribution center. The property will be developed according to LEED standards and will feature Spanish-style architecture.
In Mira Loma, IDS USA, a clothing distributor, recently signed a 5-year lease for a 645,000 SF industrial property at AMB Galleano Distribution Center for its Los Angeles regional operations. According to Michael McCrary, senior vice president in Colliers Ontario office, who represented the landlord, AMB Property Corporation, in the transaction, IDS was operating out of more than one location, which was inefficient for its operations.
“With values in the Inland Empire continuing to drop due to decreased demand, companies such as IDS can capitalize on the market and secure a great piece of real estate for their core operations,” explains McCrary.
Originally published in Colliers Real Estate Insider
Pat Remolacio
Bret Hardy
Clyde Stauff
Michael McCrary
Tags: Bret Hardy, California, Clyde Stauff, colliers, industrial, integrated real estate solutions, market, Michael McCrary, Pat Remolacio, real estate, southern, transaction
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