San Francisco Developer Plans to Capitalize On Pent-Up Warehouse Demand In Arguably Nation's Hottest Distribution Market
San Francisco-based Newcastle Partners, Inc. has purchased 25.74 acres in Riverside, CA, where it will begin the second phase of its Meridian Distribution Center at midyear.
The real estate investment and development company will start construction on a speculative 510,000-square-foot distribution building at its project at Opportunity Way and Meridian Parkway, located in Meridian Industrial Park, a 1,290-acre master-planned commerce center featuring office, retail, industrial, and research and development space.
Newcastle Partners completed construction at the end of 2013 of a 600,000-square-foot distribution building at 14600 Innovation Drive in the industrial park.
The new facility will be situated at 22200 Opportunity Way, a block south of the Innovation Way development. Building features include 32-foot clear height, ESFR sprinkler system, and up to 360-foot truck courts.
"It makes sense for us to continue to invest in this market," said Dennis Higgs, Newcastle Partners managing partner and founder. "There is a great deal of pent-up demand among users due to the recovering economy. Now that things are improving, we’re seeing much more interest in expansion, especially into well-located buildings in the Inland Empire."
Cushman & Wakefield Executive Vice President Phil Lombardo said the 30.5 million square feet in leasing activity in the Inland Empire at the end of 2013 was the second-highest level since Cushman & Wakefield began tracking industrial stats, eclipsed only by 2005.
Lombardo also noted that strong build-to-suit activity has driven much of the increase in leasing. Lombardo and Chuck Belden are the leasing agents for Meridian Distribution Center I and II.
Please see CoStar COMPs #2952433 for more information on this transaction.