SAN BERNARDINO, CA-KTR Capital Partners of New York City-based has acquired two industrial buildings totaling more than one million square feet from Hillwood Investments for $46.63 million in an Inland Empire sale negotiated by CB Richard Ellis. The buildings, part of the Northgate Portfolio, are located at 927 E. 9th St. and 7776 E. Tippecanoe.

Hillwood was represented by CBRE's Darla Longo, Barbara Emmons, Rebecca Perlmutter, Jack Fraker and Josh McArtor. The property previously traded in December 2009 when Hillwood bought the then-vacant, newly constructed, class A buildings. Since Hillwood's purchase, its has leased 73% of the buildings to two tenants, Leggett & Platt and Royal Appliance.

Longo commented in a deal announcement: "With strong leasing activity and two credit tenants in place, now was an opportune time for Hillwood to monetize the properties. At the same time, KTR Capital Partners is well-positioned to capture significant appreciation as the cyclically low rents roll toward expiration.” Both built in 2009, each of the free-standing buildings features cross-dock configuration, an all-concrete truck court and possible additional trailer storage.

Phil Prassas, SVP of Investments at KTR, called the transaction “an opportunity to acquire two class A stabilized assets at a substantial discount to replacement cost in the nation’s most dynamic industrial market.” The KTR Southern California portfolio now totals approximately seven million square feet, he said.