3M Company will nearly double the size of its Ontario, CA distribution center after securing a sale/leaseback arrangement for its current location and striking a build-to-suit deal with Trammell Crow Company for a new facility on an adjoining site.
3M sold the industrial building and vacant land at 5151 - 5153 E. Philadelphia St. to an investment group called Ontario Innovation Center II LLC for $31.91 million.
The 270,890-square-foot distribution building was constructed in 1990 on 24 acres in the Airport Area submarket of San Bernardino County. It has 47 loading docks and a 15-foot drive-in area.
Included in the sale was an adjacent 17.9-acre vacant lot. As part of the deal, 3M has signed a 10-year, 454,877-square-foot lease for a proposed new distribution facility to be built there. The project will break ground this month, with an anticipated completion date of May 2015. David Nazaryk of Trammell Crow Co. will oversee the development of the new facility.
The project team was headed by Doyle Shea, real estate manager for 3M Company. Gary Gregg, Mike Gordon, Ashley Snyder and Eric Walker with Cresa represented the seller. Sam Foster with JLL represented the buyer. Cresa Phoenix and JLL brokered the lease deal.
"This was a complex assignment, and we looked at multiple scenarios for accomplishing 3M’s goals," said Gregg, managing principal with Cresa Phoenix. "We were able to achieve extremely favorable economic terms for 3M while making sure they have a state-of-the-art distribution center."
Please see CoStar COMPS #3064641 for additional information on the sales transaction.