(EDITOR’S NOTE: According to sources familiar with the transaction, the property was sold by JLL Income Property Trust for $183 million, or approximately $240 per square foot.)
INDIANAPOLIS — Duke Realty (NYSE: DRE), the leading domestic-only, pure-play logistics property REIT (Real Estate Investment Trust) in the United States, announces that it has acquired a 766,235-square-foot logistics facility located at 2151 Vintage Avenue in Ontario, CA. The building, which is in Southern California’s Inland Empire West submarket, is fully leased to Toyo Tire Holdings of America, a subsidiary of Toyo Tire Corporation, one of Japan’s largest tire manufacturing companies.
“This acquisition gives Duke Realty another modern, well-appointed logistics facility in the high-demand Inland Empire West submarket and is consistent with our strategy of growing our portfolio in high-barrier-to-entry Tier 1 markets,” said Mark Crawford, vice president and head of acquisitions for Duke Realty. “Southern California continues to be an area of focus for us because of its potential to provide strong rent growth and solid value for our stockholders.”
“We are fortunate to add a building of this caliber to our portfolio and to welcome Toyo Tires, a well-known, high-quality tenant to Duke Realty,” said Nancy Shultz, senior vice president of Duke Realty’s Southern California operations. “Existing logistics buildings that offer this functionality in the 500,000 to 1 million-square-foot range are in very short supply throughout the Southern California markets and have become increasingly difficult to build due to land constraints.”
The Inland Empire West submarket continues to appeal to companies looking for modern distribution space close to the nearly 15 million residents who live within a 50-mile radius. Vacancy is currently below 1.5 percent.
In addition to its size, Duke Realty’s new building at 2151 Vintage Avenue boasts 30’ clear height and a 180′ truck court. The building also provides immediate access to the I-60, I-15 and I-10.
This acquisition is a continuation of Duke Realty’s strategy of adding modern and conveniently located facilities to meet companies’ warehouse and distribution needs through development and acquisitions. With the addition of 2151 Vintage Avenue, Duke Realty’s Southern California portfolio now exceeds 17 million square feet.