ProLogis (NYSE: PLD), has announced that it has acquired two distribution centers totaling 855,000 ft² in Southern California's Inland Empire.
The adjacent facilities are located along Interstate 60 in the city of Ontario. The first, built in 2001, totals 741,500 ft². The second was built in 2005 and totals 113,400 ft². Both are 100% leased under long-term customer agreements.
"The Inland Empire remains one of North America's most vital distribution markets, characterized by solid demand and an increasingly scarce supply of land and bulk warehouse space, particularly in the western submarket," said Pat Cavanagh, ProLogis senior vice president and regional director of capital deployment. "Combined with ongoing new development, strategic acquisitions remain a key part of our expansion strategy here, helping us to build our platform and extend relationships with customers. We're very pleased to announce this latest transaction and look forward to integrating our new properties into our overall Inland Empire portfolio."
ProLogis also announced that it has leased a recently acquired, 700,000-ft² distribution center in the city of Redlands to a Fortune 500 company with distribution requirements on the West Coast. The building, purchased by the company in the third quarter of 2006, is located at ProLogis Park Redlands, a 1.8 million-ft² distribution park east of Ontario International Airport.
"We're extremely pleased to have signed this new, multi-year agreement with a high-quality customer," said Michael Del Santo, ProLogis market officer and first vice president of capital deployment. "The acquired building is a strong addition to our portfolio, and this lease transaction underscores the continued strong market dynamics we are experiencing in the region."
ProLogis is the largest owner of industrial distribution space in the Inland Empire, with 73 facilities totaling more than 27 million ft² operational or under development. Customers in the region include APL Logistics, Ashley Furniture, Big Lots, Black & Decker, Broyhill Furniture, Burlington Coat Factory, CKE Restaurants, Clorox, Exel Logistics, Gillette, Ford Motor Co., LG Electronics, Skechers, Simpson Manufacturing, Solo Cup, Unilever, Volkswagen, and Wal-Mart.