Partnership Plans $30M Industrial Park

LAKE ELSINORE, CA-Fairway Commercial Partners of Manhattan Beach and Adler Realty Investments of Woodland Hills have acquired an 18-acre site where they plan to develop a $30 million project of industrial and showroom space. Preliminary site plans call for approximately 255,000 sf of industrial and showroom buildings, but build-to-suit facilities will also be considered, the developers say.

The development site is near the Highway 74/Interstate 15 interchange, a location that the developers say will take advantage of the scarcity of industrial land in Lake Elsinore and a current industrial vacancy rate in Southwest Riverside County that is less than 3%. Available industrial land has become increasingly scarce in Lake Elsinore over the past few years as well as in the Corona industrial market to the north, says Rod Oshita, principal of Fairway Commercial.

Industrial development "has continued to creep steadily up the Interstate 15 corridor from markets in San Diego County, Temecula and Murrieta," Oshita adds. He says that extensive residential development in the southwest Riverside County market and the associated population growth continue to fuel development in the area.

The development parcel, which the new owners bought from the George Chade Family Trust, is close to a new commercial hub on Central Avenue that comprises more than 850,000 sf of new retail space that is occupied by Home Depot, Lowe's, Costco, Staples, Pet Smart, Pet Co, Target, Bed, Bath and Beyond and numerous restaurants.

According to Mike Adler, president of Adler Realty, the property appealed to the partnership as a development site for a number of reasons, among them its location in the fast-growing I-15 corridor. Lake Elsinore is attracting its share of that development because of its lower housing and land costs, proximity to skilled labor and its location, he says.