A Canadian firm is looking to scoop up a piece of Southern California’s tight industrial market.
A joint venture between Ivanhoe Cambridge, a Montreal-based real estate firm, and Newport Beach-based CapRock Partners announced plans to develop a $450 million industrial campus in Ontario in the Inland Empire on Tuesday.
Dubbed the Colony Commerce Center, the logistics complex will span about 3 million square feet of industrial space, with 11 buildings ranging in sizes from 600,000 to 1,000,000 square feet.
Ivanhoe’s foray into the Southern California market comes as demand from companies in a variety of industries, in particular manufacturing and e-commerce, has pushed vacancy levels in Los Angeles County to their lowest level since the early 2000s.
That’s led many tenants to look elsewhere, such as the Inland Empire, which is about 40 miles east of Los Angeles. The region has become attractive because of its more affordable rents and readily available supply.
Ivanhoe recently acquired the two parcels of land from CapRock for an undisclosed amount, and has since tapped the firm to develop the project on its behalf, according to a company statement.
CapRock first acquired the site in 2014. It then received entitlements to build the industrial site in two phases, according to its website.
Darla Longo and Barbara Emmons Perrier of CBRE brokered the deal.
Ivanhoe invests and develops office, multifamily and retail projects around the world. It is currently developing a 1.1 million-square-foot office project in Paris and a $200 million residential project in San Jose, as well as redeveloping three retail malls in Canada.