Industrial & Investment Real Estate Brokerage
CAPROCK PARTNERS ACQUIRES TWO LARGE INDUSTRIAL
                                                                        

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        CAPROCK PARTNERS ACQUIRES TWO LARGE INDUSTRIAL
        LAND SITES IN RIALTO, CALIFORNIA
       
        44 Acres of Premium Inland Empire Land Set for One Million         Square Feet of
        State-of-the-Art Industrial Development

         
        CapRock Partners Receives $50 Million Debt and Equity         Financing Facilitated by Bridgeport Investments

       

 
        IRVINE, Calif. (August 20, 2014) — CapRock Partners, a private         commercial real estate investment firm based in Orange County,         California, today announced the acquisition of the second of two         premium land parcels in Rialto, California. Only one mile apart, the         projects boast ideal freeway access to the 210, 15 and 10 Freeways.         Having fully entitled both projects, CapRock Partners is set to begin         development of more than one million square feet of state-of-the-art         industrial on the two sites this fall.
         
        “These acquisitions have been 18 months in the making, as we carefully         observed the region’s industrial market and the appetites of Fortune         1000 firms for distribution centers in this key location,” said Pat         Daniels, COO and co-founder of CapRock Partners. “During the process,         we leveraged our ability to creatively and strategically structure the         transactions so that we could pursue and obtain all entitlements and         approvals - and complete designs for the two buildings - concurrent to         the close of escrow.”
         
        The first purchase - not previously publicized - is known as CapRock         Distribution Center I and closed at the end of the first quarter of         2014.  Located at the northeast corner of North Locust and West         Bohnert Avenues in Rialto, the site features direct access to the 210         Freeway and is just minutes to the 10/15 Freeway Interchange. The         project encompasses 26.30 net acres of unimproved land and an existing         multi-tenant industrial building, which will be demolished to make way         for a new, 609,888-square-foot, Class A distribution center. Work at         the site is set to begin in September 2014.
         
        The second acquisition - that closed escrow last week - is known as         CapRock Distribution Center II and is located at the northwest corner         of North Linden Avenue and West Casmalia Street in Rialto. Just 500         feet north of the 210 Freeway and serviced by the Locust Street on and         off ramps, this 18.74 net acre parcel of unimproved land is near the         intersection of Interstates 10 and 15, placing it strategically in the         center of key transportation corridors. A 408,164-square-foot,         state-of-the-art distribution center is planned for the site, and is         set to begin construction in late August 2014.
         
              
        “The key to the success in the capitalization of this deal was the         combination of a strong real estate sponsor that has a long history in         this market, combined with an entrepreneurial institutional equity         capital partner, and a creative, relationship-oriented lender,”         said Randy Bramel, Founder and President of Bridgeport         Investments.
         
        A groundbreaking event at the CapRock Distribution Center II site will         be held in September 2014, and will mark the evolution of CapRock         Partners into one of the region’s premier owners and developers of         institutional quality industrial real estate in Southern         California. 

       

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Deal Opportunity: Have a property to submit?  Please call Jon         Pharris, Director of Acquisitions at 949-342-8000 ext. 103 or email at jon@caprock-partners.com

                                                                               

                         

                 
Ports of LA/Long Beach

AIR Brokers, Guests Get Close-up View of Vital Long Beach Port; ‘Connect Dots’
Second Top Story

“Cruising   the Long Beach harbor waterway enables you to really witness the power of   global trading and its in-depth impact on the U.S. economy,” said Joseph Lin   of Colliers International in Ontario and AIR Vice President/MULTIPLE   Director.

Fellow broker Matt Stringfellow of The Klabin Company/CORFAC International   in Torrance added, “The tour was interesting and informative.   The   experience helped connect the dots from the import of goods to the docks to   the industrial buildings we deal with.”

Lin and Stringfellow were responding to the recent (July 31) two-hour boat   tour of the Port of Long Beach, the nation’s second largest, enjoyed by a   capacity turnout of some 114 brokers and guests of the AIR.

After AIR Executive Director Tim Hayes introduced him, Brett Mascaro,   Business Development Manager of the Port of Long Beach (POLB), told the   gathering that the $180 billion worth of cargo that traverses the port   annually is “crucial to the region’s and global supply chain.”

As the tour progressed through the harbor, unveiling massive   state-of-the-art Gantry cranes and eye-popping cargo ships from various   nations with container stacking capabilities unrivaled in the world, Mascaro   underscored that POLB is committed to sustaining its pre-eminence in the   field via a $4.5 billion capital improvement program currently underway.

Entering the port’s key “Middle Harbor”, AIR guests learned that this   section of the port handles the largest of the world’s large container   vessels, able to stack 44 containers across and nine high.  Mascaro   noted that a new terminal being developed by Long Beach Container Terminal is   expected to be the “most efficient and greenest terminal in North America.”

As the tour boat passed under the Gerald Desmond Bridge, the AIR   contingent was informed that the “iconic” bridge will be raised some 50 feet   as a result of a $1.3 billion improvement program now underway.  “When   complete, the bridge will be the tallest structure in Long Beach, including   the World Trade Center,” Mascaro said.  He added that the bridge rebuild   will enable the newest “big ships” to enter a harbor which already handles   vessels like no other port.

Adding a special take on the tour, Corey Spound of JLL, Immediate Past   President of AIR, said:  “The tour gave us a close-up view of what   drives our city and provided us with a unique way to experience that.”

As the tour boat docked, Hayes and AIR COO Joy dela Cruz announced the   winners of the traditional raffle.  They were Teresa Petrosyan of JLL   and Pablo Dresie of Lee & Associates.  Both received $700 Apple   Store gift cards.  Sponsors for the AIR port tour were Arden Realty,   Rexford Industrial, California Statewide CDC, Bank of the West, BFC Funding,   Bank of America and Commerce Escrow Company.

Clark’s Nutrition to Anchor
                      

Clark’s     Nutrition and Natural Food Market is scheduled to open at Mountain Village     Plaza this fall.

   

CHINO,   CALIF. — Clark’s Nutrition and Natural Food Market   has signed on to lease 46,134 square feet at Mountain Village Plaza in Chino.   The store will serve as the plaza’s anchor. 

Mountain Village is located at   12835 Mountain Ave. Other notable tenants at the plaza include Fitness 19,   Starbucks, Round Table Pizza and Mobil Oil. Clark’s Nutrition is scheduled to   open this fall. 

Brad Umansky and Paul Galmarini   of Progressive Real Estate Partners represented both the landlord and Clark’s   Nutrition in this transaction. 

"This location presented a   perfect opportunity for Clark’s Nutrition to open a fourth Inland Empire   store and expand its reach to a new customer base," says Umansky.   "The store will be a strong addition to both the shopping center and the   community. This transaction is an excellent example of the increased demand   we are continuing to see from retailers for well-located space in Southern   California’s Inland Empire market."

Anixter International Leases Space
                      

Airport     I-10 Business Park is the last large, developable parcel remaining in the     Sky Harbor International Airport submarket.

   

PHOENIX   — Anixter International has leased 63,000 square feet of space at   Airport I-10 Business Park in Phoenix. The global distributor of enterprise   cabling and security solutions will occupy almost half of the park’s   “Building E.” 

The business park is located at   the northwest corner of 24th Street and Rio Salado. Airport I-10 Business   Park is the last large, developable parcel remaining in the Sky Harbor   International Airport submarket. It is one of the largest speculative   industrial developments in Phoenix’s Sky Harbor Airport-area. Building   E’s shell is expected to be complete in the next few months. 

Anixter was represented by   CBRE’s John Werstler, Jerry McCormick and Cooper Fratt. The landlord,   Wentworth Property Co./Clarion Partners, was represented by JLL’s Pat Harlan,   Steve Sayre and Kyle Westfall. 

"It is rare in today’s   Phoenix industrial market to secure lease commitments on a spec property   that’s still under construction before tenants can physically see and touch   the space," says Harlan. "The fact that Anixter has signed on at Airport   I-10 at this early stage speaks volumes. It is a welcome post-recession event   and a strong statement about the caliber of the project and our industrial   market as a whole."

CapRock Buys 110,000 SF
                      

The     110,000-square-foot, high-image industrial/R&D building resides within     the Jamboree/5 Freeway and 261 Toll Road corridor, near Tustin Legacy and     Tustin Marketplace.

   

TUSTIN,   CALIF. — CapRock Partners LLC has acquired a 110,000-square-foot,   high-image industrial/R&D building in Tustin for an undisclosed sum. The   building includes a second story, which features 10,000 square feet of office   space. 

The asset is located at 14191   Myford Road. It resides within the Jamboree/5 Freeway and 261 Toll Road   corridor, near Tustin Legacy and Tustin Marketplace. 

The building is home to one   tenant, which occupies 40 percent of the space. The remaining 69,000 square   feet will be converted into creative office space. 

CapRock will invest more than   $1 million in this conversion to create a modern, open office layout. The   funds will also be used for additional improvements, including collaborative   outdoor work areas and outdoor entertainment amenities. Improvements are   scheduled to begin this fall. 

The building recently   underwent additional renovations, including the installation of a new façade   with an expansive glass curtain wall, resurfaced entry parking lot,   attractive landscaping and a seismic retrofit. 

"As Orange County grows   into its moniker as the ‘Tech Coast,’ we are seeing a heightened demand for   creative office space and there is a shortage of that product for larger   users in the airport area," says Jon Pharris, CapRock’s principal and   director of acquisitions. "With our planned renovations and our   experience in repositioning similar buildings in Silicon Valley, we expect   this redesigned building to command a premium and fill a void in this   submarket." 


 

Newmark Grubb Knight Frank Acquires NorCal Firm Cornish & Carey Commercial
                      

Chuck     Seufferlein

   

SANTA   CLARA, CALIF. — Newmark Grubb Knight Frank   (NGKF) has acquired Cornish & Carey Commercial, a commercial real estate   brokerage firm in Northern California.

"Cornish   & Carey’s unwavering commitment to its clients, impressive roster of top   talent and respected reputation in Northern California and Silicon Valley   make it an important addition to our firm," says Barry M. Gosin, NGKF’s   CEO. "This acquisition solidifies NGKF’s West Coast presence and further   reinforces our position as a dominant industry force that can offer clients   the full range of commercial real estate services provided by best-in-class   brokers in each discipline and market."

NGKF   initially established a partnership with Cornish & Carey in 2010. NGKF   was acquired by BGC Partners in 2011. Cornish & Carey maintains 12   offices throughout Northern California, including Palo Alto, Sacramento, San   Francisco, Santa Rosa and its headquarters in Santa Clara.

Chuck   Seufferlein, Cornish & Carey’s president and CEO, has been named   president of NGKF’s Western Region. Seufferlein will work closely with Gosin.

"We   are delighted to join forces with industry powerhouse NGKF whose scale and   depth of services represent a tremendous value opportunity for our   clients," Seufferlein says. "As Newmark Cornish & Carey, we   look forward to building upon our successful partnership and remain committed   to providing our clients with exceptional service and a superior   understanding of their real estate market needs."

Amazon to Open Fifth Fulfillment Center in Redlands
                      

The     704,115-square-foot facility will join Amazon’s existing California     fulfillment centers in San Bernardino, Moreno Valley, Patterson and Tracy.

   

REDLANDS,   CALIF. — Amazon has announced it will open a fifth California fulfillment   center in Redlands. The 704,115-square-foot facility will join existing California   fulfillment centers in San Bernardino, Moreno Valley, Patterson and Tracy.   Once complete, the online retailer will have expanded its presence in   California to 2 million square feet. 

"We are proud to be hiring   for more than 2,500 full-time jobs in California that offer wages 30 percent   higher than traditional retail stores and include comprehensive benefits on   day one, bonuses and stock awards," says Mike Roth, Amazon’s vice   president of North American operations. "We have found great talent in the   state and we’re excited to be growing quickly to serve our   customers." 

The new center will be used to   pick, pack and ship large items, such as big-screen televisions and kayaks.    

Economic Boom Thru Shale Energy

 
 
 

The Shale Surge: $80B   Economic Boom Reshaping American Cities

                             

Bruce     Rutherford

   

Shale zone communities have   discovered another benefit from their surging economic growth: more of   everything. Small towns like Williston, North Dakota, which has relatively   little retail, are now catching the eye of major brands like Whole Foods   Market and Trader Joe’s. 

With $80 billion expected in   annual investments over the next six years and rapid population expansion,   local infrastructure construction and real estate development in shale   formation areas like the Bakken in North Dakota and Eagle Ford in Texas are   turning small outposts into genuine boomtowns. 

According to JLL’s 2014 North   American Energy Outlook, major metropolitan areas are benefitting too, with   “surge cities” fuelled by oil and natural gas production growing at   more than twice the pace of their peers. 

"The energy boom is having   a dramatic effect on the infrastructure of these boomtowns and on the   economies of the hubs that support the oil and gas business," says Bruce   Rutherford, international director and head of oil and gas practice for JLL.   "Sites like Williston and Midland, Texas, or Hobbs, New Mexico in the   Permian Basin are having a tremendous influx of workers, and those workers   need to eat, they need places to shop and they need homes. All of this   demands infrastructure that doesn’t exist, and it needs to be built. 

"It also creates a   business that has to be supported regionally which means jobs and a surge of   economic activity in cities like Houston, Denver, Dallas and   Pittsburgh," adds Rutherford. "We are just scratching the surface   of the benefit on our local economies." 

These developments have taken   on new urgency as the U.S. prepares to join Canada as a net exporter of oil   and gas as early as 2015, according to the International Energy Agency. JLL’s   Energy Outlook quantifies this progress. 

"The U.S. Department of   Commerce’s recent announcement that it will open the door to more U.S. oil   exports is an incredible economic opportunity," says Rutherford.   "Increases in crude production could lead to a nearly $73 billion rise   in the U.S. GDP in 2016. That means more jobs and economic growth in these   communities." 

By creating communities where   shale workers want to live and bring their families, shale zones can attract   the right talent to produce oil and gas in a timely manner from every land   lease. It’s no surprise that apartments, stores, roads and hotels are being   built at a rapid pace. Property values are rising and vacancy rates are   plummeting. 

Surge Cities: A   Zone-by-Zone Infrastructure Progress Report 

Like all real estate, shale   zone infrastructure development is unique to each local market. Here’s how   critical infrastructure is progressing in each shale zone, as documented in   JLL’s report: 

* The Bakken (North Dakota and   surrounding areas): Real estate is at a premium and retail   development needs are profound. The average retail square foot per person is   at 12 in North Dakota, nearly 50 percent less than the U.S. average. Man   camps are commonplace due to low housing vacancy rates and rising home prices,   which are expected to jump 9.7 percent by 2018. 

* Boomtown: Williston, North Dakota.   Often used as the face of the shale zones, Williston is a relatively new   market with little existing retail to support its rapidly growing population.   Apartment rents are above $2.50 per square foot. The future is bright.   Williston offers the expectation of a 30-year window of prosperity coupled   with a flurry of new housing and retail developments. One example: Swiss real   estate company Stropiq is planning a $500 million, 219-acre development   featuring 1 million square feet of retail, entertainment and hotel space   along with offices and residential plots. 

* Surge City: Denver, Colorado.   Energy-related tenants occupy 25 percent of the top properties in Denver’s   central business district. Energy industry employment in the region is   expected to remain strong in the near future, buoyed by Denver’s proximity to   higher education and public policy programs. 

Denver has some of the   strongest apartment rental growth rates in the country as vacancy rates have   dropped to a historical low. The Mile-High City’s office market is typical of   a shale zone surge city, where energy companies are battling for prime space,   giving landlords the upper hand in lease negotiations. 

Meanwhile, growing small- and   mid-size energy companies are scaling up, seeking top properties in the   central business districts to attract talent.  

Click here to read the   rest of Haisten Willis’ story.

Pacific Industrial Breaks   Ground


  on Sierra Pacific   Center in Fontana

                             

Sierra     Pacific Center will be situated near the facilities of notable companies     like Target, Nordstrom, Under Armor, Black & Decker and OHL.

   

FONTANA,   CALIF. — Pacific Industrial has broken   ground on Sierra Pacific Center, a 744,032-square-foot logistics and   distribution facility in Fontana. The Class A facility will be located at   5565 Sierra Ave., near the 15 and 210 freeways.

The new   center will be situated near the facilities of notable companies like Target,   Nordstrom, Under Armor, Black & Decker and OHL. The center is expected to   be complete by the first quarter of 2015.

 ”It’s important to   understand the changing dynamics of users in this market,” says Dan   Floriani, Pacific Industrial’s co-founder. “We have emphasized designing   facilities that will not only provide best-in-class today, but will remain   relevant 10-plus years from now… We are firm believers that tenants are not   just looking at warehouse functionality, but also want to occupy facilities   that create great working environments for their employees with   office-oriented features, aesthetics and nearby retail amenities.”

Bixby Buys Two Industrial Buildings
  in Rancho Cucamonga for $26.8M 

                             

Both     buildings are fully leased to GiTi Tire USA Ltd. The company uses the     buildings for storage and distribution of automobile and truck tires.

   

RANCHO   CUCAMONGA, CALIF. — Bixby Land Co. has acquired   two contiguous industrial buildings in Rancho Cucamonga for $26.8 million.   The buildings are located at 10404 Sixth St. and 10401 Seventh St. They total   316,197 square feet. 

Both buildings are fully   leased to GiTi Tire USA Ltd. The company uses the buildings for storage and   distribution of automobile and truck tires. Both properties also underwent   recent improvements, which included new paving, upgrades to the sprinkler   systems, improvements to the office areas and landscaping upgrades. 

 

"The disposition of the   Rancho Cucamonga industrial buildings represents the culmination of our plan   to acquire both properties and reposition them as a campus environment in   keeping with our value-add opportunistic strategy," says Marc   Belluomini, CT’s executive vice president. "The western Inland Empire   submarket remains very attractive to us, and we are actively seeking   additional industrial properties in similarly well-located locations."