The other buildings are a separate 26,171-sf foot, two-story building that is also part of the One Lakeshore Centre project and a 97,076-sf, five-story building known as Ontario Corporate Center at 430 N. Vineyard Ave. The Garrett Group was represented by CBRE vice chairman Darla Longo, EVP Barbara Emmons, first VP Natalie Bazarevitsch, EVP Bob Smith and SVP Mike Kane. Bazarevitsch, along with SVP Phil Woodford and associate David Waggoner, will handle leasing for the portfolio on behalf of Rreef.

CBRE brokers on the deal say that the acquisition tops most others both in dollar volume and in square footage, but terms of the deal were undisclosed and brokers declined to comment on the price, citing confidentiality agreements. Quarterly reports from major brokerage houses indicate that office buildings in general are selling for an average of about $250 per sf in the market, a figure that includes a broad spectrum of deals ranging from the top class A properties to lower-end buildings.

The institutional grade portfolio that Rreef bought, which is 89% leased, includes among its tenants Morgan Stanley, Marcus & Millichap and North American Medical Management. One Lakeshore Centre was built in 1990, while Ontario Corporate Center was built in 1989.

Although the size of the deal might only be considered moderate by the standards of larger urban office markets, the Rreef acquisition marks another milestone in the progression of the Inland Empire office market, which has been one of the country's top performers statistically in recent years. The deal also "represents another institutional capital player that believes in the Inland Empire office market today and going forward," notes Bazarevitsch.

Not so long ago, the Inland Empire was not on the radar screens of national and institutional investors, but that has changed, Bazarevitsch points out. She says that national and institutional players now consider the Inland Empire to be "a viable and relevant suburban office market that can support headquarters and regional office locations for major national companies."Rreef now owns approximately 350,000 sf of office property in the Inland Empire, with another 500,000 sf to 800,000 sf under development in partnership with PGP Partners as part of the planned Ontario Airport Towers project.