In a significant move within the bustling landscape of Inland Empire’s West submarket, Proficiency Capital LLC has successfully secured a robust $32.2 million acquisition financing package aimed at the expansive McGee Business Center, nestled between Chino and Pomona, California. This transaction, facilitated by JLL Capital Markets, is anchored by a three-year, floating-rate loan sourced through a banking institution.
The McGee Business Center comprises two fully leased Class B shallow-bay business parks, collectively spanning an impressive 231,696 square feet in the heart of San Bernardino County. The premises were formerly owned by ‘C’ McGee Electric, as pinpointed in CommercialEdge data.
Diving deeper, Business Park I, located at 2300 S. Reservoir St. in Pomona, was constructed in 1981 and features four structures totaling 129,800 square feet. Meanwhile, Business Park II at 12301–12395 Mills Avenue in Chino came to life in 1987, consisting of five buildings that encompass 101,896 square feet. It’s noteworthy that the duo of properties houses 71 industrial suites, each averaging a functional 3,263 square feet, dramatically displaying minimal office infrastructure—an exceptionally lean 5 percent, according to a spokesperson from JLL speaking with Commercial Property Executive.
The nature of tenant occupancy is as diverse as it is pragmatic, with applications ranging from traditional warehousing and distribution to light manufacturing—primarily catering to small business needs.
Deep Demand for Shallow-Bay Spaces
Strategically positioned less than a mile from the CA-60 (Pomona Freeway) and boasting seamless access to the CA-71 (Chino Valley Freeway) and I-10, McGee Business Center stands as a beacon of logistical advantage.
The JLL Capital Markets team orchestrating this strategic financing was led by Senior Director Peter Thompson, alongside analysts Kyle White and Nick Englhard, who have immersed themselves in the intricate dynamics of this market.
Adding to the narrative of burgeoning interest in shallow-bay, multi-tenant industrial properties, November witnessed Cabot Properties’ acquisition of a remarkable four-building, 669,000-square-foot industrial portfolio from Link Logistics, with a staggering price tag of $202 million. Intriguingly, three of these properties were repurchases by Cabot, having been originally developed by them between 2018 and 2021.
This summer, Matthews Real Estate Investment Services undertook a comprehensive analysis elucidating the spike in interest surrounding shallow-bay, multi-tenant industrial assets. Key driving factors include the versatility appealing to a myriad of users, shorter lease durations enabling timely market rent adjustments, and a burgeoning scarcity of shallow-bay offerings as developers gravitate towards larger industrial endeavors.
