CT Realty, in a joint venture with PGIM Real Estate, announces the development of Agua Mansa Commerce Park, a state-of-the-art multi-building logistics project in the heart of Southern California’s renowned Inland Empire industrial market. The fully entitled 4.4 million-square-foot project has undergone significant predevelopment by CT Realty, who will begin sitework immediately and plans shell completion of the first buildings by Summer 2021. PGIM Real Estate has invested in the development on behalf of institutional investors in its U.S. core plus equity fund.
“Developing a project of this magnitude on a spec basis speaks volumes to the confidence we have in the overall market, the project, and in this fantastic location,” said Carter Ewing, managing partner at CT. “We are fortunate to have the strongest industrial market in the U.S. right here in Southern California, and consistent with our experience in other major markets across the country, we expect to see tremendous tenant interest. We are also extremely privileged to have the strong support of the talented real estate team at PGIM Real Estate behind us.”
The joint venture between CT and PGIM Real Estate purchased the site from Denver-based Crestmore Development, managed by Viridian Partners, for an undisclosed price. While the land price for this transaction has not been confirmed, other comparable sales prices for entitled industrial land in the broader Inland Empire have exceeded $1 million an acre, putting the value of this land above $200 million. CBRE represented the Seller in the land sale, led by Darla Longo, Barbara Emmons Perrier and Dan De La Paz. CT Realty represented itself.
Agua Mansa Commerce Park is in Jurupa Valley at the epicenter of the vast Inland Empire logistics infrastructure, providing immediate distribution access to 25 million people throughout Southern California.
“The combination of the project’s proximity to the most active port complex in the U.S. coupled with our enormous consumer base is uniquely opportune for just about any company in the logistical supply chain,” added Ewing. “We are grateful to all that have participated in the land procurement and entitlement process and look forward to satisfying corporate America’s distribution needs as this port-centric market continues to grow,” Ewing concluded. Although Newport Beach, CA-based CT Realty is actively developing large-scale industrial parks in several Tier One markets across the U.S., the principals at CT have over 30 years of development experience in the Inland Empire, a key factor in the group’s successful procurement of this project.
Agua Mansa Commerce Park features three buildings over 1 million square feet in a cross-dock design with 40-foot clear height, plus two buildings with approximately 200,000 square feet each and 32-foot clearance designed for regional last-mile distribution users.
E-commerce sales, an already strong and growing demand driver for industrial distribution space, have spiked during the coronavirus pandemic and are estimated to grow by 18% this year, the highest year over year increase on record according to eMarketer. E-commerce growth has reshaped industrial demand for the last several years and places a premium on infill sites within densely populated areas.
The 206-acre project is CT’s third project to be developed with PGIM Real Estate in the past few years. CT and PGIM Real Estate recently completed a 13-building development program in Southern California and are currently breaking ground on the third phase of their 3 million-square-foot Palmetto Logistics Park in the greater Atlanta market.