COMMERCIAL REAL ESTATE TRANSACTION ALERT
July 29, 2020 — Newmark Knight Frank (“NKF”) has announced the sale of Commerce Square, a four-building, 128,912-square-foot business park, located at 1550 Marlborough Avenue and 1737, 1777 & 1989 Atlanta Avenue in Riverside, CA. The total consideration was just over $14 million.
NKF’s Co-Head of U.S. Capital Markets Kevin Shannon, Executive Managing Directors Ken White and Sean Fulp, Senior Managing Director Scott Schumacher and Managing Director Ryan Plummer represented the seller, Colony Capital. The undisclosed buyer was self-represented.
Located within Riverside’s Hunter Park, the asset is 90 percent leased to 14 credible tenants ranging in size from 1,395 square feet to 23,000 square feet. Tenants include Level 3 Communications (Century Link), T-Mobile, Honeywell International and the State of California.
“Since 2012, the Inland Empire has been considered one of the most robust markets in the country as a result of its growing population, job creation and new construction,” said Shannon. “The region’s population growth has been fueled by affordable housing options, drawing many from the Los Angeles and Orange County areas.”
Schumacher added, “Within the last few years, Riverside has been ranked among the top five cities nationwide by Entrepreneur magazine for both minority economic opportunities and owned businesses.”
The Inland Empire office vacancy was 9.5 percent by mid-2020, lower than both Los Angeles (13.9 percent) and Orange County (12.4 percent), according to NKF Research. This can be attributed to fairly steady leasing activity paired with minimal new construction in recent years in the Inland Empire.