Key Takeaways
- • A fund sponsored by CBRE Investment Management, in joint partnership with Hillwood Investment Properties, secured an approximately $756 million financing package for Phase I of the Speedway Commerce Center in Fontana, California.
- • The Speedway Commerce Center is entitled for up to 6.6 million square feet of logistics space, with construction already underway and the first two buildings anticipated for completion in early 2025.
- • Eastdil Secured arranged the financing on behalf of CBRE Investment Management, according to the release.
- • CBRE cites Inland Empire industrial fundamentals of a 5% overall vacancy rate as of Q4 2023, and a 2.96% vacancy rate for Class A buildings over 500,000 square feet in the Inland Empire West market.
Summary
A fund sponsored by CBRE Investment Management, in joint partnership with Hillwood Investment Properties, has secured an approximately $756 million financing package for the construction of Phase I of the Speedway Commerce Center, located at 9300 Cherry Ave. in Fontana, California, according to CBRE Investment Management's announcement. The financing was reported by multiple outlets with consistent figures.
The Speedway Commerce Center is a planned multi-building logistics project entitled for up to 6.6 million square feet of logistics space. Designed with 40-foot clear heights, cross-dock loading, 185-foot concrete truck courts, employee parking and more than 100 acres for excess trailer parking, the project has already commenced construction, with the first two buildings anticipated to be completed in early 2025. Eastdil Secured arranged the financing on behalf of CBRE Investment Management. Dan de la Paz, Eloy Covarrubias and Barbara Perrier of CBRE have been retained to handle leasing.
Mary Lang, Head of Americas Direct Logistics Strategies for CBRE Investment Management, said the company designed the project to meet the need for well-located, modern logistics properties in a high-demand region, and that the financing reflects market confidence in its strategy of developing Class A assets. The site benefits from access to I-15 and I-10 and proximity to the ports of Los Angeles and Long Beach. According to CBRE's research, the Inland Empire industrial market had an overall vacancy rate of 5% as of Q4 2023, while the vacancy rate for Class A industrial buildings over 500,000 square feet in the Inland Empire West market stood at 2.96%.
CBRE Investment Management reported $147.5 billion in assets under management as of December 31, 2023. It is an independently operated affiliate of CBRE Group, Inc. (NYSE: CBRE).
The Speedway Commerce Center is a planned multi-building logistics project entitled for up to 6.6 million square feet of logistics space. Designed with 40-foot clear heights, cross-dock loading, 185-foot concrete truck courts, employee parking and more than 100 acres for excess trailer parking, the project has already commenced construction, with the first two buildings anticipated to be completed in early 2025. Eastdil Secured arranged the financing on behalf of CBRE Investment Management. Dan de la Paz, Eloy Covarrubias and Barbara Perrier of CBRE have been retained to handle leasing.
Mary Lang, Head of Americas Direct Logistics Strategies for CBRE Investment Management, said the company designed the project to meet the need for well-located, modern logistics properties in a high-demand region, and that the financing reflects market confidence in its strategy of developing Class A assets. The site benefits from access to I-15 and I-10 and proximity to the ports of Los Angeles and Long Beach. According to CBRE's research, the Inland Empire industrial market had an overall vacancy rate of 5% as of Q4 2023, while the vacancy rate for Class A industrial buildings over 500,000 square feet in the Inland Empire West market stood at 2.96%.
CBRE Investment Management reported $147.5 billion in assets under management as of December 31, 2023. It is an independently operated affiliate of CBRE Group, Inc. (NYSE: CBRE).
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