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ONTARIO, CA-Silagi Development & Management of Thousand Oaks, Calif., has begun construction of a four-building, approximately 100,000-sf industrial condominium project that is due to be completed later this year.

The project is designed to meet what broker Milo Lipson of Grubb & Ellis describes as an extremely strong demand for small, owner-user industrial buildings in Ontario, which is known much more as the home of some of the largest warehouse and distribution buildings in the United States.

“There’s really not any small property like this for sale out here. We already have two of the units in escrow,” Lipson, who is marketing the project for Silagi along with partner Ron Washle, tells GlobeSt.com.Silagi is asking $90 to $95 per sf for the condos and has obtained the asking price in the first two deals, according to Lipson.

“There is a lack of product in this size range because this is such a big box market that a lot of developers are just chasing big sites and developing the biggest building they can,” Lipson tells GlobeSt.com.

Lipson’s comments echo those of brokers throughout Southern California, who say that low interest rates and the availability of Small Business Administration financing make buying so attractive in comparison with leasing that small, owner-user industrial buildings are selling as fast as they are built.

The first phase of Silagi’s project is four buildings that can each be divided into four units, with units ranging from 4,330 to 15,461 sf. The second phase, for which construction is tentatively scheduled for next year, will be 110,000 sf and will also be four buildings divisible into four units each.

The one-story project is at 780-940 Rochester Ave. in Ontario, next to the Interstate 15 Freeway, in an area with zoning that permits retail, industrial, manufacturing and office uses.

Lipson tells GlobeSt.com that city zoning allows up to 50% office space in each of the units, which he expects will be bought by a broad spectrum of industrial users, including manufacturers who will use portions of their buildings as showroom space.

General contractor for the project is Gentosi Construction of Santa Ana, Calif.

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