A Class A office building in Ontario is on the market, with an asking price of $22.5 million, or approximately $226 per square foot. Totaling 98,366 square feet, the office building, also referred to as Ontario Corporate Center, is nearly 100 percent occupied and has received numerous renovations, a listing by brokerage firm Lee & Associates shows.
Located at 430 N. Vineyard Avenue on approximately 3.8 acres of land, the building reaches five stories. The building is currently owned by Encinitas-based Providence Capital Group, which acquired it for an undisclosed amount. Since its acquisition, the 1980s-era office building has recently undergone various renovations throughout the course of 2016 to 2021.
“The building common areas, restrooms, elevators, parking lot, landscape, and two-story glass atrium lobby were completely remodeled in 2016 to 2020. The building roof, central chiller system and window treatments were replaced in 2015. Currently, there is on-site Security and Day Porter services provided by Securitas, Inc.,” the listing states.
Currently, the building is 98 percent occupied by various tenants and offers a net operating income of just over $1.4 million. The property also offers an annual cap rate of 6.31 percent.
The property is located in Ontario’s Central Business District, near a variety of other commercial office and industrial properties, with nearby tenants including FedEx, Sam’s Club, The City of Ontario and others. The property is also a short commute from the Ontario International Airport and the Ontario Convention Center. Building tenants also have easy access on and off Interstate 10, which connects the Greater Los Angeles area to downtown Los Angeles.
According to Lee & Associates, tenants are paying below market rents, allowing for potential rent growth for future lease renewals. Rent growth in the Inland Empire office market has been approximately 4.79 percent year-over-year. In the next 24 months, rent growth is projected to grow by 7 percent. In 60 months, it is expected to grow 18 percent. Currently, rental rates in the region are approximately $2.12 per square foot per month. While vacancy rates in Ontario’s office market are at 8.4 percent, a lack of office construction being planned is expected to cause prices to continue to rise.
Lee & Associates did not respond in time to comment on this story.