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SAN BERNARDINO, CA-The Texas-based development firm has kicked off construction of a 540,480-sf speculative expansion of the Westgate I building in the company’s AllianceCalifornia project. The new space will increase the size of Westgate I to 1.14 million sf, making it one of the largest buildings in the AllianceCalifornia project.

The expansion of the Westgate building will ensure that Hillwood has enough distribution space available to meet the continuing and increasing demand for such space in the Inland Empire, according to John Magness, SVP of Hillwood Investment Properties. Many companies have shortened their site selection decision-making from years to months, Magness points out, so the development firm wants to be ready to provide space as quickly as possible.

Hillwood expects to complete the expansion, which is located at 310 S. Tippecanoe St., in October. The 600,240-sf first phase of Westgate I was completed in May 2005 and is occupied by Pep Boys.

Including the Westgate I expansion, Hillwood is under construction on more than 1.8 million sf at Alliance California. The 913,726-sf Gateway North I building and a 404,560-sf distribution center for the Medline medical supplies distribution firm are scheduled to be completed in September.

The Westgate I building is being marketed by Peter McWilliams, Michael Daley and Ruben Goodsell of Colliers Seeley. Since December 2000, when Hillwood was selected as the project’s master developer, the total of space built or under construction at the AllianceCalifornia project has climbed to 6.4 million sf.

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