An industrial asset in Temecula has recently been placed on the market, offering 109,741 square feet of distribution and warehouse space. The fully-occupied building, located at 28381 Vincent Moraga Drive, is being listed by Newmark.
While Newmark did not disclose guidance pricing for the property, public records show the asset was last sold to an entity associated with Thiet D Nguyen and Linh Mong O’steen for $16 million. The building was purchased in April of 2021 at which point it received various renovations, including a new roof, exterior paint, landscaping and more.
The property is solely occupied by REUZEit Inc., a laboratory equipment supplier. According to the offering memorandum, the company’s lease expires in 2027 and contains three percent annual rent increases. Currently, REUZEit Inc.’s rent totals $0.80 per square foot per month, equating to a net operating income of just over $1 million.
With its location in Temecula, the property is situated in close proximity to Interstate 215 and State Road 79. The building is also just a one-hour drive to downtown San Diego and and a one hour drive to Ontario International Airport.
Its close proximity to the Inland Empire also makes the property highly competitive, according to Newmark. The Inland Empire continues to be one of the leading industrial markets across the United States, with close to 657 million square feet of total industrial inventory. Demand across the Inland Empire has remained high over the past several years. As of the end of 2021, vacancy rates in the Inland Empire reached 0.8 percent. At the same time, the region saw positive net absorption of 28.9 million square feet. Despite having nearly 25 million square feet of new product under construction, the cumulative rent growth from 2016–2021 also increased nearly 100 percent.