Seller will continue to occupy the building under new property ownership
Temecula CA— CBRE announced real estate investment and management firm Stos Partners has purchased an industrial property in Temecula, CA for $7.1 million.
CBRE’s Rob Gunness and Kevin Kelly represented the seller, Calavo Growers, an international farm products company known for its distribution of avocados.
Located 28410 Vincent Moraga Drive, the 64,678 square-foot industrial property has been occupied by Calavo Growers since 1985. The building features an open warehouse, refrigerated cooler space, large yard space, excess land, dock loading, heavy power and 125 parking spaces. Calavo has primarily used the building as an avocado packing plant and will continue its operations under a new long-term, 30,000 square-foot lease in Suite B of the building.
The property is located within one mile of the I-15 freeway that connects Temecula to both Riverside and San Diego counties. The surrounding area is home to many other corporations including Abbott Labs, Medline, FF Enterprises and Motorola Solutions. Several of Temecula’s most popular dining and entertainment venues are also in proximity to the site.
“Calavo Growers has enjoyed a long history as a staple of the agriculture industry in California, and we are very pleased that this history will continue,” said Kelly. “This deal creates a ‘best of both worlds’ scenario, as the buyer will be completing a renovation that will create an even better environment for Calavo to operate in, while also improving the value of the asset.”
Gunness added, “The Southwest industrial submarket remains very strong. Due to the extremely limited speculative product to supplement the demand and low vacancy, rents will continue to rise for good industrial product in 2019.”
The Inland Empire industrial market showed no signs of deacceleration in the first quarter of 2019 due to impressive demand levels and solid rental growth, according to a CBRE research report. Activity was balanced across all size ranges, due to a strong local economy from top to bottom. New big-box industrial facilities drew strong interest from e-commerce users, while smaller product under 300,000 square-feet was popular among logistics companies and other supporting industries. Overall, expectations for the industrial market in 2019 are high with occupancy gains and rental growth projections on par with the previous year.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2018 revenue). The company has more than 90,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 480 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.