(EDITOR’S NOTE: According to industry reports, the buyer in the transaction was an entity affiliated with EQT Exeter.)
StarPoint Properties, a leading real estate investment firm known for delivering above market and asymmetrical returns, today announced the close of a $49.5 million sale of 6th Street Point, a new 179,000 SF industrial property located on a 9.8-acre site at 24712 6th Street, San Bernardino, California. The buyer for the Opportunity Zone (OZ) project was a global institutional real estate firm
Designated by the US Government in 2017, Opportunity Zones were created to spur economic growth and job creation in lower income communities while providing tax benefits to investors.
“While most OZ investments are planned for a 10-year hold, our Prime and Prime OZ Program, is able to maximize returns on this investment in just three years,” said Paul Daneshrad, CEO and Founder of Starpoint Properties. “As a result, by selling now and rolling these funds into multiple other investments, we’ll be able to pursue future projects that will continue to yield the highest returns possible for our investors.”
The first OZ sale for the firm, this stands out as one of the few full cycle OZ sales in the marketplace to date. At a 242% ROI, following the firm’s acquisition of the land for $6.5 million in 2020, the sale clearly demonstrates StarPoint’s ability to execute on its Prime and Prime strategy and sets a trend for future OZ investments to come.
The sale highlights the success of StarPoint Properties’ approach to OZ’s through their “Prime and Prime” program, which focuses on targeting the two strongest asset classes – multi-family and industrial – as well as sourcing the strongest locations and delivering the highest returns by optimizing assets and capital. The firm plans to roll the profits into multiple investments which they already have in place throughout Colorado and Arizona.
The location of this project, adjacent to the San Bernardino International Airport in the heart of the Inland Empire, currently has less than a 2.9% vacancy rate and is considered one of the most sought-after warehouse/distribution markets in the county. The property includes in-demand amenities including 36’ ft. clear heights, built-in dock-levelers, and wiring for roof solar panels and electric forklifts. Located in an unparalleled industrial submarket, 6th Street Point will be a highly valued asset for corporate tenants within logistics, automotive and manufacturing industries.
“In today’s real estate investment market, it is critical that investors work with a firm that is diligent, creative yet intelligent in their approach to all phases of the deal cycle, from acquisition through execution to disposition,” emphasized Daneshrad. “It is the only way to maximize returns and keep investments safe.”
StarPoint Properties is a leading real estate investment and operating company focused on the acquisition, development and redevelopment of undervalued commercial properties in high-growth sub-markets throughout the United States. Since its inception in 1995, StarPoint has transacted over $2.0 billion in commercial and multifamily real estate. It operates a portfolio valued at more than $1 billion.