NEWPORT BEACH, CA—REDA Bascom Ventures, a joint venture between the Bascom Group and Real Estate Development Associates has broken ground on two speculative industrial developments in the Inland Empire and Los Angeles. The two projects total 500,000 square feet and are expected to come online in the first quarter of 2015.
“We believe there are tremendous opportunities here and each submarket has distinct characteristics, which make them attractive,” Jason Krotts, a principal at REDA, tells GlobeSt.com. “Our focus as an organization is to create value through transformation by focusing on either development or repositioning opportunities in Southern California. Southern California as a whole (Greater L.A., O.C., S.D. and the I.E.) is around 1.7 billion square feet of industrial product—twice as large as Chicago, the next closest industrial market in terms of size.”
Located in the City of Commerce, the Malt Avenue Distribution Center is 141,000 square feet with 32-foot clear heights, dock-high loading and a secured truck court. Oltmans Construction is leading the construction efforts for the development. The second project, the Hemlock Distribution Center, is located in Fontana, CA. This is the larger of the two projects at 358,000 square feet. The total cost of the projects is $45 million. The Hemlock Distribution Center build includes a $17.9 million loan from Bank of the West.
REDA acquired both of the construction sites in 2013. The Malt Avenue site was acquired from a private investor in March of that year, while the 16-acre Hemlock site was purchased from JM Eagle, a plastics distribution company, in an all-cash transaction completed in October.