North Palisade Partners Pays $45M for Inland Empire Site
Plans call for the conversion of the former waterpark into a Class A distribution facility.
North Palisade Partners has acquired a 17-acre site in Redlands, Calif., for $44.5 million. The land previously accommodated a waterpark that was vacated in 2018 and will be transformed into a Class A warehouse distribution facility.
Lee & Associates Principal Hunter Warner brokered the transaction on behalf of both the buyer and the seller, identified by Commercial Observer as an LP named The California Gateway.
Situated at 1101 California St., along the 10 Freeway, the facility will take shape in the Inland Empire East submarket of Southern California. According to a recent CommercialEdge report, the submarket had a vacancy rate of only 1.9 percent as of April.
Inland Empire investment activity shows no signs of slowing down
Due to persistent demand for warehouse distribution space, investors continue to participate actively in the market. The same report also indicated that the Inland Empire market accounted for the highest deal volume in the country this year through April, with $1.6 billion in industrial assets changing hands. The market’s proximity the Ports of Los Angeles and Long Beach, combined with the region’s substantial consumer base, is anticipated to be a persistent driving force in the industrial market.
In a prepared statement, Joe Mishurda, founder & managing partner of North Palisade, highlighted Inland Empire’s consistent position as one of the leading industrial markets in the country over the past five years.
Brookfield Asset Management is also among the most active players in the area. Earlier this year, the company acquired an 1.8 million-square-foot Class A industrial campus in Cherry Valley, Calif., through one of its funds. Hillwood Investment Properties and CBRE Investment Management also purchased 364 acres in a $559 million deal. The site will house the first phase of Speedway Commerce Center, a multi-building logistics campus that is set to span 6.6 million square feet.