Affinius Capital and McDonald Property Group Execute Pre-Lease with Otto Cap at The HUB @ Ontario International Airport

Affinius Capital and McDonald Property Group are pleased to announce the signing of a major lease with Otto International, Inc., at The HUB. This 254,677-sq.- ft.-building lease located at 3551 East Jurupa Street, City of Ontario establishes The HUB’s first lease at its premier master-planned logistics park in Ontario, Calif. It has been secured six months prior to the scheduled completion of its initial Phase 1 of the project totaling two million sq. ft. consisting of four buildings.

The project ownership is CanAm Ontario, LLC, which consists of a notable Canadian pension fund, an investment affiliate of Affinius Capital, and McDonald Property Group. CanAm Ontario recently executed a 55-year ground lease with Ontario International Airport Authority to develop the entire 200-acre site.

“Securing this lease ahead of completion underscores the appeal of The HUB’s quality and location adjacent to Ontario International Airport,” said Eddie Gonzalez, managing director of asset management for Affinius Capital. “We are privileged that Otto International selected our Inland Empire development and pleased to count them among the companies we serve throughout our global industrial and logistics portfolio.”

Otto International committed to this long-term 154-month lease with CanAm Ontario to satisfy its expansion and future growth needs. The building will operate to scale up Otto’s next day’s shipping promise at larger volumes and reduce costs through new fulfillment automation integrated in the facility. With over 70 years of experience, Otto has established itself as a leading global manufacturer of quality headwear with 20,000 active wholesale partners. 

“Otto is extremely proud to partner with Affinius Capital and McDonald Property Group in the development of our soon-to-be flagship West Coast Distribution Center in Ontario, California,” stated Mr. Razgo Lee, Chief Executive Officer of Otto International. “Our new robotic automated facility at The HUB will allow us to streamline our West Coast logistical hub and distribution point as the premier tenant in this amazing facility. We are honored to participate in such a monumental project which will support our growth plan and commitment to our valued customers.”

Darla Longo, Barbara Perrier, Walt Arrington, Joey Sugar and Joe Werdein represented McDonald Property Group and Affinius Capital in the lease transaction. Dylan McDonald and Dillon Dummit of Savills International represented Otto International.

Situated directly across from Ontario International Airport (ONT) in San Bernardino County, the project is notable for its scope, location, timeline and complexity. It will also be one of the first large-scale developments in Southern California to incorporate an innovative carbon-reduction system for the slab, tilt wall panels and paving as part of Affinius Capital’s strategic plan for achieving its environmental sustainability goals through concrete decarbonization methods. Multiple strategies for incorporating concrete decarbonization, sustainable elements and achieving LEED® Gold certification for this industrial development were identified. The carbon reduction of emissions volume resulting from this project, as compared to conventional concrete design for industrial projects, will achieve 35% less embodied carbon from a conventional concrete design or approximately 44,000 tons less embodied carbon released into the atmosphere across the entire HUB development.