THE OPPORTUNITY

In 2017, Shopoff secured entitlements for a two-building, 1.8 million-square-foot logistics center in the Inland Empire East, near the confluence of Interstate 10 freeway and Highway 60, in Cherry Valley, CA. Set on 155 acres, the I-10 Logistics Center project includes two high-cube logistics/warehouses. The project features 40-foot clear-height ceilings, 665 employee parking spots, 585 trailer parking spots, and 296 dock-high doors.

HOW SHOPOFF IS ADDING VALUE

In a joint venture with Artemis Real Estate Partners, Shopoff began construction on the project in April 2021, and the buildings were subsequently completed in January 2023.

The property was sold to Brookfield Asset Management real estate fund in January 2023 for $329 million. Brookfield pre-leased the building prior to the close of sale, demonstrating the pent-up demand in the market for quality logistics product.

Use of the property as a logistics center is well-suited, given the proximity of the site to the Inland Empire’s major I-10 trade route, providing easy access to Southern California and the shipments coming out of the ports of Los Angeles and Long Beach. There is also a limited inventory of distribution buildings in the immediate area to meet the demand for large distribution warehouses.

THE RESULT

The project’s design took into great consideration the surrounding geography and community. It is also environmentally friendly with a LEED Silver design and solar panels to offset 100% of the energy usage. In addition, in partnership with the Yucaipa Valley Water District, two miles of pipeline was constructed for its recycled water conveyance project, supplying recycled water for the project’s landscaping, and to homes and businesses throughout Calimesa.*

Disclosures

An investment in a Shopoff fund involves a high degree of risk, including the possible loss of your entire investment, and is illiquid with an uncertain liquidity date. This material does not constitute an offer to sell or a solicitation of an offer to buy any security. Securities offered through Shopoff Securities, Inc. Member FINRA/SIPC. *While this transaction was successful, past performance does not guarantee future results. Each asset and market environment is unique.

These properties are one of a number of properties that are managed by Shopoff Realty Investments, and owned by open and closed investment funds. For the listing of all Shopoff’s current holdings visit: https://www.shopoff.com/current-assets/