Xebec Realty plans 315K sf industrial building in Chino
Gets $34M in construction financing for spec complex
Xebec Realty is planning to build a 315,300-square-foot spec development in the Inland Empire.
The Los Angeles-based industrial specialist secured $34.1 million in construction financing for the planned industrial building, according to financial brokerage Walker & Dunlop, which arranged the interest-only loan. The lender was not disclosed.
Located across 10 acres along Yorba Avenue, the property will be designed as a light industrial facility for distribution and item assembly, according to Xebec’s website. The facility is expected to be completed in March of next year.
Records show the land is owned by the City of Chino. Xebec has proposed to build the warehouse and an office building under a 66-year land-lease agreement with the city, planning documents filed publicly show. Xebec will make no lease payments under the agreement.
With the new project, Xebec can participate in “extremely high demand for Class A industrial product in the Inland Empire,” Walker & Dunlop’s Rob Quarton said in a statement.
Vacancy rates across the Inland Empire — which comprises San Bernardino and Riverside counties — dropped to below 1 percent in the fourth quarter of last year, according to Newmark, making it the tightest industrial market in the nation.
High demand has led the development of speculative industrial warehouses to soar, as developers race to build new warehouses.
Spec warehouses greater than 100,000 square feet in size are also being snatched up faster — these properties are leased on average around a month after being delivered to the market, according to Newmark.
And Xebec Realty is taking advantage of this industrial boom. The firm recently purchased a 105,000-square-foot building in Sylmar for $24 million, with plans to redevelop it into a new Class A facility.