BEHRINGER HARVARD AND CT REALTY INVESTORS SELL INDUSTRIAL PROJECTS IN SOUTHERN CALIFORNIA
A partnership between Behringer Harvard and CT Realty Investors announced today the sale of the Interchange Business Center, a high-quality industrial development within the Inland Empire industrial market in the eastern portion of greater Los Angeles.
The three-building Interchange Business Center complex provides 667,024 square feet of industrial space situated on a 34-acre site in San Bernardino, California. The buyer is one of the largest privately held real estate advisors in the United States.
“Our investment in Interchange Business Center was part of an overarching strategy to capitalize on the growing demand for industrial properties in the Inland Empire, which is strategically located near the ports of Los Angeles and Long Beach,” said Mr. Michael O’Hanlon, President and CEO of Behringer Harvard Opportunity REIT II, Inc. “The disposition of Interchange Business Center represents the successful conclusion of Behringer Harvard’s investment program in the Inland Empire. We’re pleased that these strategic investments have provided attractive returns for our REIT’s shareholders.”
Behringer Harvard acquired Interchange Business Center in November 2010 through its third joint venture with CT Realty Investors, a real estate investment and development firm based in Aliso Viejo, California. At that time, Interchange Business Center comprised four buildings totaling more than 800,000 square feet of warehouse and distribution space. One of these buildings, comprising 134,909 square feet, was sold separately in October 2012.
“The success of the partnership with Behringer Harvard on the Interchange project far exceeded our initial goals,” said Mr. James “Watty” Watson, CEO of CT Realty Investors. ”The attractive returns we have achieved on Interchange and other transactions with Behringer Harvard support our investment commitment to the Inland Empire, and we continue to seek additional strategic opportunities in this marketplace.”
Including Interchange Business Center, the joint investments of Behringer Harvard and CT Realty Investors have involved the acquisition and disposition of more than 2.4 million square feet of high-quality industrial space in the Inland Empire.
In August 2010, Behringer Harvard and CT Realty Investors completed two transactions. They acquired the Archibald Business Center in Ontario, California, and in conjunction with two other partners, they also acquired the Inland Empire Distribution Center, located in San Bernardino. Inland Empire Distribution Center, a two-building, cross-dock warehouse and distribution facility comprising 1.4 million square feet, was sold in September 2011. The Archibald Business Center, a corporate headquarters and industrial warehouse facility comprising approximately 231,000 square feet, was sold in December 2011.