Iowa
800 Iowa Ave, Riverside, CA
Property Highlights
- Submarket corporate tenants include: Walmart (NYSE: WMT), Grainger (NYSE: GWW), Dr. Pepper Snapple Group (NYSE: KDP), b PODS, Bourns Inc.
- Neighboring corporate owners include: DCT Industrial (NYSE: DCT), Prologis (NYSE: PLD), USAA Realty, Alere Property Group, Cornerstone Advisers, LBA Realty, Koll
- Acquisition well below replacement cost
Property Information
- +/-410,000 sq. ft. portfolio at acquisition with multiple parcels
- Building 1: +/-310,000 sq. ft. leased to Rust-Oleum, a wholly owned subsidiary of RPM International [NYSE: RPM]–a Fortune 1000 company–with a market capitalization of more than $6 billion
- Building 2: +/-100,000 sq. ft. Class C industrial building with excess land and a below market lease expiring in less than one year
- Located minutes from intersection of 91/60/215 freeway interchange
- Three (3) rail spurs service the property
- Project located in Hunter Park, master planned industrial park in the Inland Empire
Business Plan
- Enjoy cash flow on Rust-Oleum building throughout hold period
- Renew or re-lease 100,000 sq. ft. industrial building at market rents
- Potentially build a multi-building build-to-suit campus for Rust-Oleum
- Process plans for a speculative two or three building industrial park
- Capitalize on the three rail spurs and discounted City of Riverside power
The Results
- Shortly after acquisition, CapRock sold the +/-100,000 sq. ft. Class C building to a multi-national company setting sales price psf records
- Refinanced bridge loan with long term low interest rate loan secured solely by +/-310,000 sq. ft. Rust-Oleum lease
- Renewed Rust-Oleum’s lease to ten (10) year lease at higher lease rates
- Created strong returns without any construction risk in the Inland Empire
