NEW YORK –– A fund sponsored by CBRE Investment Management, in joint partnership with Hillwood Investment Properties, has secured an approximately $756 million financing package for the construction of Phase I of the Speedway Commerce Center located at 9300 Cherry Ave. in Fontana, California.
The Speedway Commerce Center, a planned multi-building, state-of-the-art logistics project, will feature highly functional, larger-scale logistics buildings that will include 40-foot clear heights, cross-dock loading, 185-foot concrete truck courts, employee parking, optimal circulation, and more than 100 acres for excess trailer parking. Construction of the project, which is entitled for up to 6.6 million square feet of logistics space, has already commenced and the first two buildings are anticipated to be completed in early 2025.
“We designed the Speedway Commerce Center to specifically meet the critical need for well-located, modern logistics properties in this high demand region. We believe that this financing milestone is further confirmation of the market’s confidence in our strategy of developing Class A assets that will be crucial to meet occupiers’ evolving technology and operation needs,” said Mary Lang, Head of Americas Direct Logistics Strategies for CBRE Investment Management.
Eastdil Secured arranged the financing on behalf of CBRE Investment Management. Dan de la Paz, Eloy Covarrubias and Barbara Perrier of CBRE have been retained to handle leasing efforts.
The Speedway Commerce Center will benefit from its location in the Inland Empire with access to I-15 and I-10, offering convenient proximity to both the ports of Los Angeles and Long Beach. The Inland Empire industrial market fundamentals remain strong with an overall vacancy rate of 5% as of Q4 2023, according to CBRE’s research. The vacancy rate for Class A industrial buildings over 500,000 square feet in the Inland Empire West market is currently at 2.96%, per CBRE.
About CBRE Investment Management
CBRE Investment Management is a leading global real assets investment management firm with $147.5 billion in assets under management* as of December 31, 2023, operating in more than 30 offices and 20 countries around the world. Through its investor-operator culture, the firm seeks to deliver sustainable investment solutions across real assets categories, geographies, risk profiles and execution formats so that its clients, people and communities thrive.
CBRE Investment Management is an independently operated affiliate of CBRE Group, Inc. (NYSE:CBRE), the world’s largest commercial real estate services and investment firm (based on 2023 revenue). The company has more than 130,000 employees (including Turner & Townsend employees) serving clients in more than 100 countries. CBRE Investment Management harnesses CBRE’s data and market insights, investment sourcing and other resources for the benefit of its clients.
