Dermody Properties Acquires 54.40 Acres in Southern California to Develop a One Million-Square-Foot Logistics Building
We are pleased to announce the acquisition of 54.40 acres of land in Ontario, Calif., which will be developed into a 1,003,348-square-foot industrial warehouse, expected to deliver in 2023. The development will be known as LogistiCenterSM at Ontario Ranch, and the site is located at Hamner Avenue and Ontario Ranch Road.
“This site is one of the last remaining parcels of land in the Inland Empire West that is capable of supporting a building over one million square feet,” said Matt Mexia, Partner in Southern California at Dermody Properties. “Upon completion, we expect it to be one of just a few options available in the nation’s largest and most in-demand industrial market. This is a very rare opportunity for both Dermody Properties and our customers.”
As of the third quarter of 2021, a CBRE report showed that the Inland Empire vacancy rate was 0.7%, and net absorption for the market was 5.8 million square feet. The Inland Empire had the highest net absorption nationally in 2020 and is pacing to exceed that in 2021.
The site was purchased from Richland Communities, which acquired the property in 2007, and it was originally intended to be a residential development. The site was acquired by Dermody Properties on November 10, 2021, and the groundbreaking is planned for the second quarter of 2022.
LogistiCenterSM at Ontario Ranch is located within half a mile of Interstate-15, 1.8 miles from Interstate-60, 4.4 miles from Ontario International Airport and 5.1 miles from Interstate-10. The ports of Los Angeles and Long Beach are 59 miles to the southwest. The site is also just 2.4 miles north of LogistiCenterSM at Eastvale, a six-building project totaling 1,057,419 square feet also developed by Dermody Properties.
Building features will include a 42-foot clear height, 196 dock-high doors, 433 car parking stalls, 383 trailer parking stalls, 185-foot truck courts, LED lighting, and ESFR sprinklers.
“The Inland Empire West is perhaps the most sought-after industrial market by institutional investors due to its immense freeway network, large and diverse Southern California population base, constrained product base, perpetually low vacancy rates and reliable liquidity,” said Tim Walsh, Chief Investment Officer at Dermody Properties. “We congratulate Matt and our Southern California team on their diligence in sourcing such a valuable asset for the Dermody Properties portfolio.”
Darla Longo, Rebecca Perlmutter and Eloy Covarrubias of CBRE were the brokers for the transaction.
LogistiCenterSM, a nationally trademarked brand owned and developed by Dermody Properties, represents the company’s business philosophy of developing Class A distribution and logistics facilities that meet the supply-chain requirements of the most innovative companies.