$27M Inland Deals Reflect Market Trends

[IMGCAP(2)]In the Ontario industrial sale, Myers Power Products, a manufacturer of electrical switchgear and other products, acquired a 221,921-square-foot building at 2950 Philadelphia St. to expand its manufacturing and corporate offices. Chris Migliori, executive vice president of DAUM Commercial Real Estate Services, says that Myers "had no problem financing the transaction," thanks to the company's strong balance sheet and continued growth. "This is one of very few large building sales of this size in the past 14 months in Southern California," observes Migliori, who represented Myers in the acquisition.

[IMGCAP(3)]According to Diana Grootonk, CEO of Myers, the company will be adding 27,000 square feet of two-story, high-image office space to the property to bring the total square feet to approximately 240,000. "Despite the current downturn, our company elected to consolidate three different buildings under one roof to provide for greater efficiencies, take advantage of today's commercial real estate prices and the current interest rates," Grootonk says. Myers bought the building from TA Associates Realty, with Mark Zorn and Tal Siglar of DAUM's Ontario office representing the seller.

In the San Bernardino REO sale, an all-cash buyer acquired the 251-unit Sunset Ridge Apartments at 1700 E. Date St. from a seller described as "one of the largest loan servicing entities in the US," according to Alexander Garcia, a senior vice president in the Ontario office of Marcus & Millichap, which represented both the buyer and the seller. Garcia and Lane Schwartz, a vice president with Marcus & Millichap in West Los Angeles, represented the seller; the buyer was represented by Steve Hsu, an associate vice president at the firm's Ontario office.

Garcia notes that the property generated 17 offers and that the sale closed in two weeks on a non-contingent basis.

Built in 1973, Sunset Ridge Apartments features 60 one-bedroom/one-bath units, 64 two-bedroom/one-bath apartments, 35 two-bedroom/one-bath townhomes, 64 two-bedroom/two-bath apartments, 20 three-bedroom/two-bath units and eight four-bedroom/two-bath apartments. This unit mix is not duplicated anywhere else in the submarket, according to Marcus & Millichap.

In the Murrieta retail lease, Mor Furniture For Less has signed a five-year lease for a 38,000-square-foot freestanding building at 39825 Avenida Acacias that formerly was occupied by Wickes Furniture. The building is at Home Center Murrieta, a 22-acre center comprising 235,000 square feet of furniture and home decor stores along the I-215 Freeway near the I-215's connection with the I-15 Freeway.

Mor Furniture is one of the country's fastest-growing furniture companies, with 15 showrooms and 10 warehouses, according to brokers from Wilson Commercial Real Estate who negotiated the deal. Shauna Mattis of Wilson and Brian Bielatowicz of Lee & Associates represented the building owner, with Vic Gausepohl of Colliers International representing the tenant. Other tenants at Home Center Murrieta, which is 85% leased, include Linder's, Easy Life Furniture, Sit 'n Sleep and Plummers.