Shopoff Realty Investments has bought 55 acres in Desert Hot Springs for a sprawling industrial development.
The firm plans to build a 1.1 million-square-foot warehouse and distribution center on the site, which is located near the 10 Freeway, though no address was provided, according to Commercial Observer. The seller was not disclosed.
The firm is “bullish on industrial, and specifically projects on the I-10 corridor,” Shopoff CEO Bill Shopoff said in a statement.
The site is already entitled and “ready for development,” Shopoff added.
Shopoff expects to begin construction on the project later this year, with completion expected for the third quarter of next year. The development will have 167 dock doors and spaces for nearly 500 trailers.
Shopoff has already tapped Ian DeVries and Chris DeVries of Colliers International and Brad Yates and Stefan Pastor of Stream Realty to market the development for lease.
Demand for industrial space in the Inland Empire, made up of San Bernardino and Riverside counties, has waned over the last few years, as tenants have pulled back from leasing aggressively in 2020 and 2021, when consumers turned to online shopping during the pandemic.
Vacancy across industrial properties in the Inland Empire hit 5.7 percent at the end of last year, according to Commercial Observer, which cited data from NAI Capital. In 2021, vacancy was below 1 percent.
Based in Irvine, Shopoff Realty Investments has several other projects relatively close to Desert Hot Springs in Riverside County, according to its website. SolTerra in La Quinta will feature 131 single-family homes for rent when construction finishes. The Westkin Properties portfolio, which Shopoff acquired in 2017, consists of nearly 2,100 condominiums and a business park in Cathedral City.
— Isabella Farr