CT REALTY, PRUDENTIAL REAL ESTATE INVESTORS ANNOUNCE JOINT VENTURE, RIVERSIDE LAND ACQUISITION
CT Realty and Prudential Real Estate Investors have formed a $120 million joint venture that will focus on development of industrial buildings for sale in Southern California. In its first acquisition, the joint venture has purchased 13.1 acres of land in Riverside, Calif., and plans to develop five industrial buildings on the property. CT/Prudential acquired the land from a major financial institution for an undisclosed sum in Q3 2014.
The CT/Prudential site is located within the 1,400-acre Sycamore Canyon Business Park on the northwest corner of Dan Kipper Drive and Sycamore Canyon Boulevard. According to Keith Ross, executive vice president of development for CT Realty, the parcel represents one of the few remaining sites available for industrial development in the business park which enjoys an exceptional location near the Interstate 215/60 freeway interchange. The buildings will be the first ground-up industrial buildings to be built in the business park since 2008.
CT/Prudential’s new $25 million development project will encompass five, Class A industrial buildings totaling 205,000 square feet and will be available for sale starting fourth quarter 2015. The state-of-the-art buildings will range from 35,000 square feet to 65,000 square feet and offer dock high loading and 30’ clear height for the larger buildings.
Zoned for industrial use, the property has already been improved with street, utilities, curb and gutter, and other infrastructure upgrades. Construction on all five buildings is expected to begin during the first quarter of 2015. HPA Architecture of Irvine, Calif., is the architect of record for the project and DRC Engineering Inc., of Anaheim, Calif., is the civil engineer.
According to Ross, the Sycamore Canyon parcel offered an outstanding opportunity to develop five industrial buildings near major transportation corridors and a strong labor supply in one of the most active, yet under-served e-commerce and medical supply markets in the state.
“Land for new, ground-up industrial properties is becoming increasingly scarce in Southern California overall, but especially in Riverside,” Ross said. “We are very excited about this latest venture and look forward to contributing to the region’s economic growth by bringing top-notch industrial buildings to the marketplace.”
Frank Geraci and Juan Gutierrez with the Ontario, Calif., office of Voit Real Estate Services represented both CT Realty and the seller in the transaction.