Lee & Associates, one of the largest national commercial real estate providers with regional expertise, facilitated the investment sale of two leased industrial business parks totaling 210,657 square feet at MS Northgate and MS Van Buren I in Riverside, CA. MDH Partners acquired the industrial facilities from Silagi Development & Management, Inc. This deal also represents MDH Partners’ first expansion into California. Georga Rowe, Managing Director at MDH Partners, sourced the deal and led the acquisition process.
Mario Calvillo, Partner of Lee & Associates Riverside Office represented the seller, Silagi Development & Management. Mario Calvillo stated, “This was a unique opportunity for both Seller and Buyer, specifically gave MDH Partners the opportunity to put an acquisition flag in the West Coast.”
MS Northgate is a two-building property located at the corner of Marlborough Avenue and Northgate Street in the Hunter Park neighborhood of Riverside. Constructed in 2017, MS Northgate features ESFR sprinkler systems, clear heights up to 26 feet and convenient access to I-215. Approximately 10 miles south of MS Northgate, Van Buren I is situated on 11.82 acres of land on the corner of Van Buren Boulevard and Meridian Parkway. Van Buren I is a 147,612-square-foot, three-building industrial project with many notable corporate neighbors such as Amazon, Pepsi, Sysco and UPS.
“The acquisition of the Silagi portfolio marks an important milestone for MDH Partners as we enter the Southern California industrial market for the first time,” said Rowe. “There is insatiable demand and tight industrial inventory in the region as momentum continues to build, and this portfolio offers unmatched locations and distribution capabilities for industrial users in the Inland Empire. We look forward to continuing our strategic expansion into new markets as we grow our footprint along the West Coast.”
Both MS Northgate and Van Buren I are located in the Inland Empire industrial market with close proximity to I-215, I-15 and I-10 and convenient access to the Ontario International Airport. The properties offer a highly desirable location due to their accessibility to San Bernardino, Fontana and Ontario. Occupying Building One of MS Northgate is Kawneer Company, Inc., a manufacturer of architectural aluminum systems and products for commercial construction. Tenants for Van Buren I include Saveway Supplies Inc., a supplier for produce packaging; Elevate Fulfillment, Inc., an e-commerce and order fulfillment warehouse; and Carpenter & Black Smith Furniture Inc., a furniture and home furnishings company.
The acquisition of the Riverside industrial buildings is the second portfolio MDH has purchased from Silagi. The firm acquired a six-building 303,790-square-foot industrial building portfolio in the greater Phoenix area from the company in April 2020. The Inland Empire industrial real estate market continues to see record activity this year with high demand and very little supply. According to JLL, the Inland Empire industrial market saw 7.1 million square feet of space absorbed in Q2 and vacancies across the market dropped to 1.7%, a new record low.
ABOUT LEE & ASSOCIATES
Lee & Associates offers an array of real estate services tailored to meet to needs of the company’s clients, including commercial real estate brokerage, integrated services, and construction services. Established in 1979, Lee & Associates is now an international firm with offices throughout North America. Our professionals regularly collaborate to make sure they are providing their clients with the most advanced, up-to-date market technology and information. For the latest news from Lee & Associates, visit lee-associates.com or follow us on Facebook, LinkedIn, Twitter and Link, our company blog.
ABOUT SILAGI DEVELOPMENT & MANAGEMENT, INC.
Silagi Development & Management (SDM) invests in value-add commercial properties across all asset classes nationally. Focused on distressed real estate, SDM looks for quality properties which are strategically located within a given market. We are also conservative to moderate in our use of financing. SDM is focused on investment return, while mitigating market exposure and downside. For more information, visit https://www.silagidevelopment.com & http://silagisocal.com.
About Atlanta – MDH Partners
MDH Partners is an Atlanta-based real estate investment company managing its discretionary funds targeting industrial real estate across the United States on behalf of its institutional investors. Founded in 2005 as the successor to a fifty-year-old local real estate development company, MDH Partners has led and/or participated in over $4 billion (75 million square feet) of acquisitions, developments, and asset management as an advisor and investor. For more information, visit https://mdhpartners.com.
