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Pacific Industrial has sold the Sierra Pacific Center, a 1.46 million square foot class-A industrial property in the Inland Empire, for $213.4 million to an unnamed institutional life insurance company. At a 3.68% cap rate, the sale is the largest industrial transaction in California in the last 24 months.

The property is fully leased to FedEx and LG, and is a one-of-a-kind development. Pacific Industrial development the property for a long-term hold, but decided to change strategies. “We decided to change track on this project because we thought that we could sell it below a 4% cap rate,” Dan Floriani, partner and co-founder at Pacific Industrial, tells GlobeSt.com. “My recommendation to my partners was that if we felt good we could achieve that, then we should monetize the asset. That is ultimately what got us on board to sell.”

Kelsi Maree Borland

Kelsi Borland is a freelance writer and editor living whose work has appeared in such publications as Travel + Leisure, Angeleno and Riviera Orange County.

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