IRVINE, CA-Sares-Regis Group has sold the two remaining warehouse and distribution buildings at its four-building 1.7-million-sf Rialto Commerce Center for $33.5 million, bringing the total for buildings sold at the 89-acre development to $115.7 million. The Irvine-based company is "on the hunt for land" for similar projects, according to Larry Lukanish, a VP in the Commercial Investment Division at Sares-Regis.
The latest sales at the Rialto Commerce Center were a 127,990-sf building that sold for approximately $11 million and a 383,000-sf building that sold for $22.5 million. Lukanish notes that the buyer of the 383,000-sf building was a maker and distributor of household décor items that earlier had acquired a 715,000-sf building at the Rialto development.
Three of the four buyers of the Rialto buildings were owner-users, Lukanish points out. "Generally, users like to buy smaller buildings of 100,000 sf or less," he says, and investors are typically are drawn to the larger buildings.
But in the case of the Rialto Commerce Center, owner-users bought the three largest buildings and an investor bought the smallest. "That shows you the strength of the user market," Lukanish observes.
The Rialto Commerce Center occupies a site north of Interstate 10 off Cedar Avenue. Sares-Regis was also involved in a deal in nearby Fontana last year that showed owner-user appetite for larger buildings. The Irvine-based company acquired two warehouses totaling 2.2 million sf at Fontana's Sierra Business Park and promptly sold one of them to a tire manufacturer.
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