Sares-Regis Group, based in Newport Beach, California, sold a large warehouse for $220 million in one of the biggest industrial property deals by total price in 2022 in Southern California's Inland Empire.
NFI Industries bought the 760,829-square-foot warehouse at 13000 Mission Blvd. near Ontario International Airport, an area that has become a major logistics hub for shippers such as FedEx and UPS as well as Amazon and other major retailers.
Even though rising interest rates and a lower appetite for risk have caused real estate investors to pull back across the country, buyers keep flocking to the Inland Empire, one of the nation's largest and most in-demand regions for logistics property.
The region's recent upswing in industrial rents has prompted some property owners to raise capital by selling their properties at today's high prices. Others, such as supply chain and logistics firm NFI, hope to lock in real estate costs by acquiring the properties they use.
The transaction's sheer size in a softening investment market across the United States earned the deal a 2023 CoStar Impact Award, as judged by real estate professionals familiar with the market.
About the project: NFI, based in Camden, New Jersey, bought the 43-acre property from Sares-Regis in an owner-user transaction.
With major funds already purchasing properties in the region, NFI's purchase further shores up the Inland Empire's reputation as an attractive hub for distribution, logistics and e-commerce operations.
NFI's acquisition of one of the area's largest industrial properties is a testament to the Inland Empire's reputation as a thriving and stable investment destination, ensuring that the region will grow and attract more businesses.
What the judges said: The deal showcases the Ontario International Airport as "the epicenter of industrial real estate in the Inland Empire," said Lon Mapes of LDM Commercial.
"The sheer size of the property garners attention in this market," Mapes added. "The asset is an older type of industrial building versus newer product, however, this acquisition demonstrates the overall strength of the submarket."
They made it happen: A Colliers team headed by Vice Chair Michael Kendall, Senior Vice President Gian Bruno, Vice President Kenny Patricia, Senior Vice President Steven Bellitti, Senior Executive Vice President Thomas Taylor and Senior Vice President Joey Jones represented Sares-Regis.
