Movalley warehouse flips in less than a year for a cool $46M gain

How hot is Inland Empire logistics sales? Sizzling.

A number of area warehouses have sold in recent months for more than $100 million, with one in particular selling twice.

A 436,350-square-foot industrial warehouse in Moreno Valey leased to Toolots has been sold to investors for $125.4 million, the second time the building has sold in less than a year.

Oxford Properties Group in Toronto, Canada, bought the warehouse at 17783 Indian St. for $80 million from KKR LP in 2021’s fourth quarter, according to Lee & Associates. In less than a year, the investment firm flipped it, raking in a gain of nearly $46 million.

The latest buyer is RREEF Property Trust, according to Vizzda, a commercial real estate data company.

Lee & Associates tracks industrial deals in east and west Inland Empire. In late 2021, the market was still in a strong growth mode, researchers said. Now, with interest rates rising, experts expect mega-deals could ease.

“Demand continues to outpace supply with extremely low vacancy despite record high prices and lease rates in nearly all size ranges and submarkets,” the second-quarter 2022 report says.

“Despite high inflation on consumer goods and gasoline, the activity in the industrial sector continues to be strong,” Lee & Associates’ report says. “Experts predict growth may slow, but industrial sale and leasing activity is expected to continue to be robust throughout 2022. Many anticipate that interest rates will continue to rise and inflationary pressure will persist, causing cap rates to rise.”

Last week, we reported that a warehouse leased to Amazon had sold for $102 million, and a week before that, it was a Riverside warehouse selling to Greenlaw Partners in Irvine for $100 million.

Lee & Associates also highlighted big deals to the east, including a 600,000-square-foot facility in Beaumont that sold for $131 million to Exeter and a 390,000-squarefoot building in Riverside that sold for $134 million to TA Realty. To the west, a 459,000-square foot warehouse at 5555 Jurupa St. in Ontario sold for $180 million to JW Mitchell Co.

$2 million update coming to Valencia Commons

Valencia Commons, a Holiday by Atria independent living community for seniors in Rancho Cucamonga, is getting a $2 million makeover.