CBRE announced the sale of an office building in Riverside, CA for $7.2 million to Providence Capital Group.
Gary Stache, Anthony DeLorenzo, Doug Mack, Sammy Cemo, and Phillip Woodford of CBRE represented the seller Magnon Companies, a local real estate development company.
Located at 1650 Spruce Street, the 58,312 square-foot building consists of five stories and features ample parking and two on-site restaurants. At the confluence of the 91 and 60 freeways, the property has great visibility and sits in proximity to 16 restaurants, six hotels as well as several grocery stores and banks. The building, constructed in 1989, features steel framing and a two-story atrium.
“This was a rare opportunity for investors because it was the only Class A value-add opportunity in the Inland Empire at the time of sale,” said Stache. “The value-add component will allow the buyer to achieve higher returns down the line through lease-up of the vacant space.”
The Inland Empire office market has experienced positive net absorption for 23 of the past 24 quarters, which is expected to continue this year, according to CBRE research. Due to the lack of development activity and increased tenant demand, existing office space has been steadily absorbed, pushing down vacancies, which is likely going to remain within the 10%-range in 2018, according to CBRE’s latest quarterly report.
Stache, DeLorenzo, Mack, Cemo and Woodford also represented the buyer, a local real estate investment firm. The CBRE Investment Properties-So Cal team specializes in the sale of office and industrial properties throughout Southern California. Since 2015 the team has sold or has in escrow over 156 transactions valued at over $2.3 Billion.over-year rise in asking rents resulted in strong investment activity, according to CBRE research.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2017 revenue). The company has more than 80,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
