Rialto Distribution Center

Rialto, CA

Property Highlights

  • Located in the master planned North Rialto submarket in the Inland Empire West
  • The development of two (2) Class A industrial buildings totaling more than 1,000,000 sq. ft.
  • Neighboring Institutional Owners: Prologis (NYSE: PLD), DCT (NYSE: DCT), Liberty Property Trust (NYSE: LPT), Metropolitan Life Insurance (NYSE:MET), TA Realty, Panattoni, Target, Hillwood (A Ross Perot Company)
  • Neighboring High-Quality Tenants: Target (NYSE: TGT), Under Armour (NYSE: UA), Amazon (NASDAQ: AMZN), UPS (NYSE:UPS), Black & Decker (NYSE: SWK)

Property Information

  • Off-market land acquisition at a significant discount to market land comps
  • The project includes a 428,000 sq. ft. Class A industrial building on approximately 18.5 acres with Interstate 210 freeway visibility as well as a 609,000 sq. ft. Class A industrial building on 26.8 acres.
  • Located near the 210 & 15 Freeway Interchange

Business Plan

  • Noticing a demand for industrial developments in the Inland Empire, in 2013 CapRock assembled two land sites totaling nearly forty-five (45) acres in North Rialto comprised of multiple sellers
  • Exploit the lack of new construction in this submarket as the economic recovery gained momentum
  • CapRock successfully entitled the two Class A industrial buildings during escrow

The Results

  • Prior to breaking ground on the 1st building, CapRock entered into a forward sale with a public REIT to de-risk the deal and proceeded to build the 609,000 sq. ft. building on a speculatively basis
  • During construction of the 609,000 sq. ft. building, CapRock successfully negotiated a sale with a large national life insurance company who acquired the building at shell completion
  • CapRock successfully sold both buildings at completion and outperformed expectations