By Press Release
Modway, Inc. Announces Expansion to Hesperia in San Bernardino County
BUSINESS EXPANSION ALERT
Modway Inc., a major distributor of living, dining, bedroom, outdoor, lighting and office furniture, plans to establish new distribution operations at Interstate 15 and U.S. Route 395 in Hesperia. Modway will sustain 200 jobs in this new location, which will become operational by fall 2021.
“Our region’s strong transportation infrastructure and skilled workforce continue to support business growth. It’s a great sign for our region to see companies such as Modway thrive and leverage our strong regional market fundamentals, especially in the High Desert, to reach their customers across the U.S.,” said Curt Hagman, Chairman of the San Bernardino County Board of Supervisors.
The new 1 million-square-foot build-to-suit industrial building is located on a 60-acre parcel that is part of the 200-acre Hesperia Commerce Center One project. Hesperia Commerce Center One will be comprised of three class-A logistics buildings, each of which will provide at least 1 million square feet of space.
“On behalf of the residents of the First District, I want to welcome Modway, Inc. and their team to the High Desert,” said First District Supervisor Robert Lovingood. “With its freeway, rail and aviation links and affordable land, the High Desert is a great location for logistics firms. We thank Modway, Inc. for investing in our community.”
CBRE sold the 60-acre Hesperia land parcel to Philadelphia-based real estate investment firm Exeter. Walt Arrington, Darla Longo, Barbara Perrier and Jeff Fritch of CBRE represented the seller, Covington Group, a Dallas-based real estate development firm and its partner M.F. DiScala & Company. Andrew Lara and Gus Andros of Daum Commercial represented Modway in the lease transaction with Exeter.
“We are excited to expand to Hesperia and play a role in helping to create local jobs,” said Modway COO Moshe Melamed. “We look forward to developing a strong partnership with the City of Hesperia and County of San Bernardino,” added Modway CEO Tuvya Greisman.
“This project is a major sign of growth for the City of Hesperia and San Bernardino County,” said Arrington. “Given the strong demand for large industrial land sites throughout the Inland Empire, the Hesperia Commerce Center with its unique location provides a complete logistics solution which includes excellent highway access, an abundant labor pool, affordable housing, and much lower occupancy costs than surrounding markets.”
Modway operates two U.S. distribution sites, one on the East Coast and one on the West Coast, which is located in 310,000-square-feet of space in Fontana. The relocation and expansion to Hesperia triples Modway’s West Coast distribution operations helping them to further scale their business.
“The business park environment is advantageous to Modway because it is entitled, planned and built for industrial distribution,” Lara said. “This move creates greater operating efficiencies for Modway to service the furniture industry. The location also gains from its freeway access to the Port of LA.”
Andros further noted that they have seen a significant increase in industrial transactions ranging in size from 100,000 to 1 million square feet of space in the Inland Empire this year as compared to 2019.
“COVID has not hurt the industrial market and in fact has driven greater demand for well-located warehouse and distribution facilities as the preference for online shopping continues to increase across the nation,” added Andros.
“Business expansion and job creation are priorities for our economic development team. We look forward to working with everyone involved to both welcome Modway as well as help to fulfill the development of Hesperia Commerce Center One as it represents the opportunity to bring more industry and jobs to the High Desert,” said San Bernardino County Interim Economic Development Director Soua Vang.
“We are excited to welcome Modway to our City. This is a great community for corporate expansion and this new development is a market changer for us and the High Desert. Moreover, we have the housing and cost of living that can continue to support employee growth and attraction,” said City of Hesperia Economic Development Manager Rod Yahnke.
Modway supplies the furniture and design trade with over 7,000 SKUs stored in from its strategically located east and west coast warehouses. Modway provides extensive in-stock color, size, and style options with no order minimums, full drop-shipping capabilities, real-time inventory counts, and an easy online ordering process.
San Francisco based Stockbridge acquires 100% leased assets in premier IE West location
Cushman & Wakefield’s EDSF also sources acquisition financing for transaction
Cushman & Wakefield announced the firm has arranged the sale of a core industrial portfolio totaling 540,478 square feet in Southern California’s premier Inland Empire West (IEW) submarket. The portfolio consists of two freestanding Class A buildings located a few miles apart at 3351 E Philadelphia St and 4450 E Lowell St in the city of Ontario. The buildings are 100% leased to prominent tenants in the distribution and retail industries.
San Francisco based Stockbridge acquired the two-property portfolio from Principal Asset ManagementSM a global financial and investment management firm. The portfolio sold for $142.25 million.
Jeff Chiate, Jeffrey Cole, Rick Ellison, and Matt Leupold of Cushman & Wakefield’s National Industrial Advisory Group—West represented the seller in the transaction. The firm’s Phil Lombardo, Chuck Belden and Andrew Starnes also provided leasing advisory.
Additionally, a Cushman & Wakefield Equity, Debt & Structured Finance (EDSF) team of Rob Rubano, Brian Share, Joseph Lieske, Max Schafer, and Becca Tse collaborated in sourcing acquisition financing for the transaction.
“Stockbridge has acquired an institutional-quality industrial portfolio with a phenomenal infill location combined with strong tenancy and premium distribution features and functionality. Both properties have maintained a historical occupancy of 100% for nearly a decade speaking to the tenant demand for industrial buildings of this quality and location,” said Jeff Chiate, Executive Vice Chair. “Additionally, with current rents below market rate, the buyer has a compelling mark-to market opportunity along with existing durable cash flow, providing a variety of value-add strategies.”
The properties offer convenient access to Southern California’s robust freeway network and other vital nodes of transit such as Ontario International Airport, the Los Angeles & Long Beach Ports, and LAX International Airport (60 miles). Access to a deep labor pool and robust consumer population also makes the region a superior industrial location.
According to Cushman & Wakefield’s latest industrial market report, the Inland Empire West submarket had a vacancy rate of 5.4% in Q1 2024, representing the tightest submarket in the broader Inland Empire market. Additionally, IEW achieved nearly 1 million square feet of positive net absorption (occupancy growth) in the first quarter of 2024.
Stater Bros. Charities, the philanthropic arm of Stater Bros. Markets, partnered with Reyes Coca-Cola Bottling again this year for their Give Back program during National Military Appreciation Month. The program ran for the entire month of May, during which Reyes Coca-Cola Bottling committed to donating $0.25 per eligible product purchased to the Bob Hope USO. Reyes Coca-Cola Bottling donated $15,000, and Stater Bros. Charities matched their donation for a total contribution of $30,000.
A check presentation occurred during a K-EARTH 101 radiothon benefiting the Bob Hope USO. The radiothon took place at the Bob Hope USO at LAX (Los Angeles International Airport) on June 29, 2023, where Stater Bros. Charities and Reyes Coca-Cola Bottling presented Bob Hope USO with a $30,000 check.
Bob Hope USO’s mission is to strengthen America’s military service members by keeping them connected to family, home and country, throughout their service to the nation. The Give Back program is a unique opportunity to show gratitude and support to the brave men and women who risk their lives for our freedoms and to care for their families while they are away from home on deployment.
“Stater Bros. Markets has a long history of supporting veterans, service members, and their families,” said Danielle Oehlman, Director, Stater Bros. Charities. “We are so pleased to partner with our friends at Reyes Coca-Cola Bottling and the USO to give back to those who have given so much for us.”
Lorin Stewart, President, USO West Region, said, “We are deeply grateful to Stater Bros. Charities and Reyes Coca-Cola Bottling for being sustaining partners of the USO. The Give Back program embodies the essence of the USO mission by enabling the community at large to come together to support and give thanks to our armed forces and their brave military families in an impactful way.”
Funds will support the Bob Hope USO and USO San Diego Center operations, including programs and services that strengthen the social, mental, physical, and emotional well-being of local military service members, their families, and their communities.
By Press Release
BDK Logistics Intelligence Fully Leases 114,190 SF Industrial Facility in Corona, CA
Cushman & Wakefield represents landlord in lease in SoCal’s Inland Empire
Cushman & Wakefield announced that BDK Logistics Intelligence, Inc. has signed a lease for an entire 114,190-square-foot industrial facility at 1161 Olympic Drive in Corona, California. Situated in Southern California’s renowned Inland Empire, the building is owned by Monterey Rancho Mirage, LLC, which was represented by Brett Lockwood and Rick Ellison of Cushman & Wakefield in the transaction.
“We are pleased to welcome BDK to the property as a quality industrial tenant that is expanding its presence in the market, which it also currently occupies multiple warehouse facilities,” said Director Brett Lockwood. “Our client was instrumental in helping this deal transact as there were many variables that needed to be navigated which led to this lease coming together quickly and successfully.”
1161 Olympic Drive is a quality freestanding building situated on ±4.8 acres and features 20 dock high loading doors. The property is conveniently located off Interstate 15 near the confluence of SR 91 and is proximate to the extensive freeway network traversing the entire Greater Los Angeles region and into other major markets in and out of state.
According to Cushman & Wakefield’s latest Q2-2023 quarterly report, the Inland Empire industrial market posted an overall vacancy of 3.4% and has recorded more than 2.7 million square feet of positive net absorption through the first half of 2023.
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