ProLogis Buys 1M SF

Terms of the transaction were not disclosed, but the purchase is likely in the $60-million range, based on the selling prices of comparable buildings in the area. Auroro, CO-based ProLogis bought the facilities from Allianz, and both and are fully leased.

The building that Wal-Mart leases totals 755,137 sf and is at 4250 Hamner Ave. in Mira Loma. Wal-Mart's lease runs until July 2009 at the building, which is part of more than four million sf of Inland Empire buildings that serve as distribution facilities for the retailing giant. The building that Kraft occupies is 445,200 sf in the California Commerce Center at 3971 Airport Dr. in Ontario, where Kraft's lease runs until the end of 2006, with options to renew.

Both ProLogis and Allianz were represented by Darla Longo and Barbara Emmons, both of CB Richard Ellis. Emmons tells GlobeSt.com that the buildings drew lots of offers from prospective buyers because of the intense investor interest in quality buildings that are leased to good credit tenants.

Larry Harmsen, a ProLogis SVP, notes that Kraft is a long-time, multi-market customer of ProLogis, leasing eight facilities for a total of more than 2.3 million sf, including this newly acquired facility. Wal-Mart also leases a ProLogis facility in Northern California.Publicly held ProLogis claims the title of the largest owner of distribution space in the Inland Empire, with more than 11.2 million sf owned or under development in the region, including ProLogis' current development project, a 2.7-million-sf facility, ProLogis Park I-210 in Rialto. The Inland Empire facilities are part of a ProLogis portfolio that includes 240.2 million sf in 1,764 distribution facilities owned, managed and under development in 70 markets in North America, Europe and Asia.