BlackRock Sells Inland Empire Hub to Burlington for $257 Million
Introduction to the Deal
It might be in the middle of the Mojave deserted and hit the least sexy segment of the real estate business. And the buyer might trade in goods that simply don’t cut it with the Wall Street set.
Details of the Transaction
But the substance of a $257 million payday no doubt makes up for a lot of missing style points on BlackRock’s deal to sell off an Inland Empire distribution hub to the discount retail brand formerly known as Burlington Coat Factory.
The retail chain, now known simply as Burlington, had been a tenant at the nearly 900,000-square-foot facility since it opened in 2019, the Commercial Observer reported.
Market Trends and Analysis
The deal for almost $286 per square foot is the latest in a trend that has seen big tenants of warehouse and logistics centers buy spaces they’ve been renting for years.
The Inland Empire is a major market for the segment, criss-crossed by interstate highways, local freeways, and rail lines that link to the two giant seaports and various air cargo facilities in Southern California. The facility that Burlington bought, for example, is at 21600 Cactus Avenue in the city of Riverside, within 2 miles of the 15 and 215 Freeways, and about 10 miles from the 10 Freeway.
Regional Market Performance
The region, which takes in San Bernardino and Riverside counties on the eastern flank of Los Angeles, ran white hot for industrial space during the pandemic before cooling off more recently.
Demand is once again ticking up, according to Mark Zorn of Colliers, who represented Burlington along with Cory Whiteman.
Current Market Conditions
The market saw elevated demand in the fourth quarter, with leasing activity surpassing 10 million square feet for the third consecutive quarter, Zorn said.
Conclusion
The sale of the Inland Empire hub to Burlington for $257 million signifies a strategic move in the industrial real estate sector, driven by the increasing demand for logistics and distribution spaces. This trend is likely to continue as companies seek to optimize their supply chains and leverage the strategic location of the Inland Empire for their operations.
FAQs
Q: Who bought the Inland Empire distribution hub from BlackRock?
A: Burlington, the discount retail brand formerly known as Burlington Coat Factory, bought the hub.
Q: How much did the deal cost?
A: The deal cost $257 million.
Q: What is the size of the facility?
A: The facility is nearly 900,000 square feet.
Q: Where is the facility located?
A: The facility is located at 21600 Cactus Avenue in the city of Riverside.
Q: What is the current trend in the industrial real estate market in the Inland Empire?
A: The market is seeing elevated demand, with leasing activity surpassing 10 million square feet for the third consecutive quarter.
