search

The Real Deal Logo

Trending

It’s not just Arbor: Syndicator lender Ready Capital chokes on past-due debtIt’s not just Arbor: Syndicator lender Ready Capital chokes on past-due debtAll Year goes after Yoel Goldman’s syndicatorAll Year goes after Yoel Goldman’s syndicatorHomebuilder Donald R. Horton dead at 74Homebuilder Donald R. Horton dead at 74Todd Glaser, partners sell Palm Beach’s priciest private island estate for $152M Todd Glaser, partners sell Palm Beach’s priciest private island estate for $152M 
Commercial
Los Angeles

Clarion and EBS buy 19-acre industrial site in Colton for $61M

Joint venture plans to raze two empty buildings and build 412K sf warehouse

Clarion Partners' David Gilbert, EBS Realty Partners' Quinn Johnson with 275 and 375 De Berry Street in Colton
Clarion Partners' David Gilbert, EBS Realty Partners' Quinn Johnson with 275 and 375 De Berry Street in Colton (CBRE, LinkedIn, Clarion Partners)

Clarion Partners and EBS Realty Partners have snapped up a 19-acre industrial site in the Inland Empire approved for a 412,000-square-foot warehouse for $61 million

The New York- and Newport Beach-based investors bought the property with two vacant industrial buildings and a large dirt lot at 275 and 375 De Berry Street in Colton, the Commercial Observer reported. The seller was Newport Beach-based Hager Pacific.

Clarion and EBS plan to demolish the buildings and break ground on the warehouse as soon as next fall.

Brokers Darla Longo, Barbara Perrier and Eric Cox of CBRE represented the seller.

Sales of industrial properties have slowed across the U.S. compared to last year, while Los Angeles County and the Inland Empire sales remain strong, according to the Observer.

Sign Up for the undefined Newsletter

The industrial vacancy rate in the first quarter across Southern California was 1.6 percent, while the U.S. industrial market vacancy dropped to a 27-year low of 4.2 percent, according to Savills.

At the same time, industrial demand has dropped, with the Inland Empire having negative net absorption — with demand less than supply — in the second quarter for the first time in 55 quarters, according to a Colliers report. Colton is in the Inland Empire region’s San Bernardino County.

In related deals, Clarion Partners, a real estate unit of New York-based Franklin Templeton Investments, appears ready to trade a San Francisco office tower it bought in 2014 for $107 million, or two-thirds less than the purchase price. EBS Realty, founded by Quinn Johnson in 2003 as Equity Building Services, teamed up with Connecticut-based Penwood Real Estate Investment Management in January to buy a 6.7-acre, 186,000-square-foot industrial campus in Irvine for $24 million.

— Dana Bartholomew

Read more

Companies and People
Clarion PartnersEBS Realty PartnersHager Pacific Properties
Tags
Warehouse