Two-Building Office Property in San Bernardino Hits Market with $20MM Asking Price

Inland Empire, CBRE, One Carnegie Plaza, San Bernardino, Long Beach, Harbor Associates, San Bernardino County, Lawyer’s Title, Fidelity National Title, San Bernardino International Airport, Tri-City Corporate Centre

By Catherine Sweeney

After last trading hands in 2019, an office property located in one of the Inland Empire’s largest office campuses is back on the market. According to a property listing by CBRE, the two-building office property, also referred to as One Carnegie Plaza, is up for sale, with guidance pricing starting at $20.17 million, or approximately $186 per square foot.  

Located at 621 E. Carnegie Drive in San Bernardino, the property totals 108,397 square feet and is situated on approximately 2.15 acres of land. The property was built in 1987 and was last acquired by Long Beach-based Harbor Associates in 2019 as part of a larger transaction totaling $41.7 million, industry reports show. 

According to the offering memorandum, the building is currently 86 percent occupied, with tenants including San Bernardino County, the State of California and Lawyer’s Title, a member of Fidelity National Title. The property currently offers a 6.78 percent cap rate and a net operating income of approximately $1.37 million. 

Additionally, lease terms at the property average 4.58 years, with only 5.89 percent of the leases expiring before 2025.  

“One Carnegie Plaza provides the needed investment security, while offering a strong immediate income stream, a staggered lease expiration schedule, and easily achievable upside through the vacancy absorption,” the offering memorandum states. 

The property is located within San Bernardino’s Tri-City Corporate Center, a 153-acre office campus consisting of 17 office buildings with on-site amenities including restaurants, retailers, a health and fitness club and more. The property also benefits from its close proximity to transportation, such as the San Bernardino International Airport and nearby Interstates 10, 15, 40 and 215. 

“San Bernardino is also California’s logistical backbone, supported by a regional economy that is the nation’s 23rd largest, larger than that for the state of Utah. San Bernardino County is larger than nine different states and boasts an economy that ranks among the 50 largest in the world,” the offering memorandum states.

The Inland Empire overall has reported positive growth, according to CBRE reports. The brokerage firm reported the region has grown 21.5 percent over the past year, and is now just second to Austin, TX for the highest listed home price growth. Job postings in the Inland Empire are also up 53 percent since February 2020, which is in large part due to the strong demand from the e-commerce and logistics sectors in the region.