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REDLANDS, CA-Kearny Real Estate Co. has acquired the 585,000-sf Redlands Industrial Centre here for $39.5 million in one of two high profile deals by CB Richard Ellis, which also has landed the leasing assignment for a new mixed-use office and restaurant development in Riverside. Los Angeles-based Kearny bought the three-building industrial project from a joint venture of Borstein Enterprises and Alameda 24th Street LLC, with CBRE’s Kevin McKenna, Ian DeVries, Grant Ross and Alan Buchanan representing the seller.

The Redlands Industrial Centre consists of three newly constructed and vacant buildings of 101,000 sf, 160,000 sf and 323,000 sf on San Bernardino and Almond avenues. McKenna, DeVries and Ross are the leasing agents for the three buildings, which are part of a master-planned 28-acre development.

McKenna says that the acquisition of vacant, new construction is appealing to both sellers and buyers in today’s investment market. The demand from investors is so high that they are willing to assume the lease-up responsibility for the buildings, McKenna explains, and developers like such deals because they can turn a profit while minimizing their risks.

The Riverside project for which CBRE has been named leasing agent is a 115,000-sf class A office and retail development called Madison Plaza by PRP Development at the high-profile corner of Madison Avenue and the 91 Freeway. PRP Development plans to break ground in early 2007 on the five-story office building and an adjacent three-story parking structure with 300 spaces.

The leasing agents for the project are CBRE’s John Oien, Ted Snell and Allison Schneider. PRP, which has owned the land for approximately two years, is redesigning the site plan to allow for better on-site traffic flow and greater accessibility to a Bally Fitness Club and restaurants on the site, according to PRP’s Brett Del Valle.

Oien notes that the inclusion of a parking structure as part of the new plaza marks a new trend in the Inland Empire, where traditionally the cost of buying more land for parking lots has been less expensive than the cost of building a parking structure. “With the significant increase in land prices over the past couple of years, in many cases it is becoming more cost effective for developers to build parking structures than to buy the additional land for a parking lot,” he says.

Parking is a major draw for prospective tenants, according to Oien. He says it’s so important that “It can make or break a deal.

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