NEWPORT BEACH, Calif. – JLL Capital Markets announced today that it has arranged $210 million in construction financing for the development of the first phase of Ontario Ranch Business Park, a Class A, seven-building, 1.68-million-square-foot industrial project currently under construction in the heart of the Inland Empire in Ontario, California.
The development is owned by a joint venture between Newport Beach-based Real Estate Development Associates, LLC (“REDA”) and an industrial fund managed by Clarion Partners, LLC. JLL worked exclusively on behalf of the borrower to place the three-year, floating-rate, interest-only, non-recourse loan with a national bank.
The JV acquired the 84-acre site in December 2020. Once completed, Ontario Ranch Business Park will be a state-of-the-art project with clear heights ranging from 30 to 40 feet, 287 loading positions and 775 parking stalls. The largest building, which will house 1.1 million square feet, is preleased to Fortune 100 company The Home Depot.
Positioned at the intersection of Euclid and Eucalyptus avenues, the project provides direct access to Interstate 15, SR-71 and CA-60, providing easy connectivity to the Ports of Long Beach and Los Angeles as well as Southern California’s dense residential base. Additionally, Ontario Ranch Business Park is across the street from Chino Airport and convenient to both Ontario International Airport and Los Angeles International Airport.
Inland Empire Industrial market has seen overwhelming tenant demand that has continued to push vacancy downward, which now sits at a remarkable 0.4% at the end of the first quarter of 2022. JLL Research has found that the Inland Empire West Industrial submarket, where this project is located, has the lowest vacancy – 0.2% – making the submarket even tighter, and JLL anticipates availability to remain extremely limited over the near-term to mid-term.
The JLL Capital Markets Debt Advisory team representing the borrower included Managing Director Brian Torp, Director Peter Thompson, Associate Samuel Godfrey and Analyst Jordan Leake.
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.