MGR Real Estate has bought a 147,700-square-foot office building in Ontario for $38.5 million.
MGR, based in the city, bought the Ontario Airport Tower, a six-story building at 2855 East Guasti Road, the Inland Valley Daily Bulletin reported. The seller was undisclosed.
The Class A offices, built in 2008, were 89 percent leased at the time of sale. The major tenant is West Coast University’s Ontario campus.
It was last sold in 2015, according to public records.
The Silver LEED-certified building along Interstate 10 has travertine floors and stainless steel, glass and wood accents, and 200 parking spots.
Brokers Kevin Shannon, Ken White, Brunson Howard, Paul Jones and Michael Moore of Newmark represented the private seller. Brian Bowis of Newmark secured financing for MGR.
“The Inland Empire office market has clearly outperformed both the Orange County and Los Angeles office markets since the onset of the pandemic, with a current healthy vacancy rate of approximately 10 percent and extraordinary year-over-year job growth of 5.7 percent,” Shannon, co-head of U.S. Capital Markets at Newmark, said in a statement.
Office rent growth in Ontario has leveled out after six consecutive quarters of gains, with average asking rent up 3.9 percent over the past year. Vacancy fell 0.2 percent from last quarter to 10.5 percent, the lowest level in two years.
Net absorption remained positive, with 77,756 square feet of gains, according to Newmark Research.
MGR was founded in 1983 by Michael Rademaker and has offices in Ontario, Victorville and Carlsbad. The Ontario Airport Tower marks its 16th commercial building in Ontario, according to its website.
— Dana Bartholomew
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