Home Alts News Shopoff Sells California Logistics Development for Big Profit

Shopoff Sells California Logistics Development for Big Profit

Shopoff Realty Investments and Artemis Real Estate Partners announced the sale of their I-10 Logistics Center project to a Brookfield Asset Management real estate fund. According to Shopoff, total development cost of the project was approximately $185 million. Third party reports indicate the sales price was north of $300 million.

The newly completed 1.8-million-square-foot logistics center is located in the Inland Empire East, near the confluence of the I-10 Freeway and Highway 60, at 36500 Cherry Valley Blvd. in Cherry Valley, CA.

“Completing this project is a major milestone for our firm, and we are especially proud of the positive impact it has had, and will continue to have, on the surrounding community,” said Shopoff president and chief executive officer, William Shopoff. “This project has helped to create hundreds of construction jobs, as well as an anticipated nearly 1,000 permanent jobs at the facility itself. It also provided significant fees to local government and utility agencies during construction and will add substantial tax revenue on an ongoing basis, further supporting this emerging community in the Inland Empire. Our team was dedicated to making this project a positive addition to the community while also filling a major void in this trade thoroughfare for additional logistics space.”

Brookfield Properties, represented by CBRE, leased the building to a global e-commerce retailer with plans to employ nearly 1,000 employees at this location.

“The 1.8-million-square-foot, two-building campus is an impressive addition to our expanding portfolio with its highly desirable location and alignment with our sustainability standards,” said Joonas Partanen, senior vice president and head of West Coast operations for Brookfield Properties’ Logistics business. “With Brookfield’s broad reach and global relationships, we successfully leased the project during construction, strategically positioning our client and tenant to expand their U.S. operations in a critical market.”

In addition, the joint venture worked with the Yucaipa Valley Water District to construct two miles of pipeline for its recycled water conveyance project. The pipeline will supply recycled water for the project’s landscaping, as well as providing recycled water to homes and business throughout Calimesa. This newly constructed infrastructure will save millions of gallons of potable drinking water every year by using pure recycled water for irrigation.

The joint venture will also update the I-10 Interchange at Cherry Valley Boulevard, including replacing the existing stop signs with traffic signals.

The project also contributed to creating trails and permanent open space, along with future park land. According to Shopoff, 85 acres of land on the north side of the property will be permanently preserved as open space through a conservation easement. In addition, in 2020, Shopoff donated 123 adjacent acres to the Beaumont-Cherry Valley Recreation & Park District’s foundation for a future park and open space.

Construction of the project began in April 2021 and the buildings were completed December 2022. Set on 155 acres, the I-10 Logistics Center project includes two high cube logistics or warehouses buildings that have been designed for LEED Silver Certification. Building one covers 814,822 square feet of space and building two covers 1,017,845 square feet of space, for a total of 1,832,667 square feet of floor area. The project includes 40-foot clear-height ceilings, 665 employee parking spots, 585 trailer parking spots and 296 dock high doors.

Shopoff Realty Investments is an Irvine, California-based real estate firm with a 30-year history of value-add and opportunistic investing across the United States. The company primarily focuses on generating appreciation through the repositioning of commercial income-producing properties and the entitlement of land assets. The 30-year history includes operating as Asset Recovery Fund, Eastbridge Partners and Shopoff Realty Investments (formerly known as The Shopoff Group).

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