RIALTO, CA—CapRock Partners, a private commercial real estate investment firm based in Orange County, CA, has acquired the second of two premium land parcels in Rialto, CA. 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,” says 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 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 is known as CapRock Distribution Center II and is located at the northwest corner of North Linden Ave. and West Casmalia Street in Rialto. Just 500 feet north of the 210 Freeway and serviced by the Locust Street on and off ramps, the 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.
Paul Earnhart, Brian Pharris and Jeff Smith of Lee & Associates represented CapRock Partners in the transactions, while the debt and equity was raised by Chris Bramel and Paul Conzelman of Bridgeport Investments, an Orange County-based real estate investment banking and advisory firm that provides a broad spectrum of advisory services to real estate developers, owners and investors.
“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,” says Randy Bramel, founder and president of Bridgeport Investments.
Jon Pharris, a principal and director of acquisitions for CapRock Partners, adds that “CapRock Partners is committed to building best-in-class distribution centers to fulfill the logistic and e-commerce needs of Fortune 1000-caliber tenants. Through our development efforts, we aim to positively impact the job and commercial real estate markets in the region for years to come.”
Pharris tells GlobeSt.com that the total construction cost will be in the mid-$60-million range with a completion for both buildings in the second quarter of 2015. A groundbreaking event at the CapRock Distribution Center II site will be held in September 2014.