Los Angeles, June 7, 2023 – North Palisade Partners, a development and investment firm focused on industrial, industrial outdoor storage (IOS), and self-storage properties, acquired a nearly 17-acre site at 1101 California St. in Redlands, CA for $44.5 million. The Inland Empire East property formerly housed a waterpark that closed in 2018 and is envisioned to be transformed into a modern Class A warehouse distribution facility.
Joe Mishurda, Founder and Managing Partner of Los Angeles-based North Palisade Partners, said, “Demand for larger blocks of functional industrial space across Southern California remains strong and competition for sites in the Inland Empire is fierce. We plan to redevelop the former Splash Kingdom waterpark, that was vacated five years ago, into a warehouse distribution building to meet demand from a variety of users.”
The facility will be located in Southern California’s Inland Empire East submarket, which had an industrial vacancy rate of 1.7% at of the end of Q1 2023. The Inland Empire has been one of the top performing industrial markets in the country for the past five years.
Investors remain active in the market due to sustained demand for warehouse distribution space. According to research by Commercial Edge, the Inland Empire eclipsed more than $1.66 billion in industrial real estate sales volume in the first quarter of 2023. The Inland Empire’s location to the Ports of Los Angeles and Long Beach, along with the region’s massive consumer base are expected to continue driving the industrial market. Mishurda adds, “Headline doom and gloom for all commercial real estate is the prevalent theme today which is causing dislocations in value in well performing sectors such as logistics. Additionally, severe illiquidity in construction lending will reduce deliveries in 2024-2025+, further impacting the long-term supply demand imbalance. North Palisade will remain active in this part of the cycle.”
Hunter Warner of Lee & Associates represented the buyer and unnamed seller in the transaction.
Mishurda adds, “This site along the 10 Freeway, offers immediate on- and off-ramps at California Street that connect to the primary east-west logistics corridor in Southern California. We recognized this site was an opportunity to continue building our industrial portfolio in a key market.”
North Palisade has added 12 industrial, IOS, and self-storage development properties to its portfolio with a total capitalization of approximately $410 million over the past 18 months. Additionally, the company has nearly $315 million of projects under contract in key logistics markets in Northern California, Southern California, and Nevada.