KTR Capital Acquires 656,000-SF Warehouse

ONTARIO, CA-An affiliate of New York City-based investment group KTR Capital Partenrs has acquired a 656,000-square-foot warehouse at the Hofer Ranch project here from CB Richard Ellis Investors. The distribution building is 77% occupied by footwear company Converse, with the full lease guaranteed by Nike.

Built in 2007, the building at 1460 S. Hofer Ranch Rd. is adjacent to the Ontario International Airport and is the main distribution facility for Converse. According to Brian Gagne, a KTR vice president, the 150,000 square feet that is available in the building “is well positioned to appeal to a broad range of tenants” because of its location.

Terms of the sale were not disclosed. The building attracted significant investor interest, according to a team from CB Richard Ellis who brokered the deal.

The CBRE team included vice chairman Darla Longo, executive vice president Barbara Emmons, director Rebecca Perlmutter, executive vice president David Consani and senior vice president James H. Koenig.

CBRE’s marketing materials note that demand for industrial space is rising in the Inland Empire West industrial submarket where the Hofer Road building is located. Net absorption totaled 2.4 million square feet in the third quarter and 1.2 million square feet in the second quarter, according to CBRE.

With the acquisition of the new asset, KTR’s Southern California portfolio now totals close to three million square feet. Los Angeles County, the Inland Empire and Orange County are core markets for KTR, which “will continue to seek out new industrial acquisition opportunities in 2010,” Gagne says.