Lakeside Tower is among 17 buildings that are part of the Tri-City Corporate Centre complex that was sold to new owners as part of the largest office space in Inland Empire history, according to the real estate brokerage firm CBRE. (Courtesy photo)
By Neil Nisperos, Inland Valley Daily Bulletin
Posted: 04/12/15, 7:48 PM PDT
In another sign of the region’s rebounding economy, the largest sale of office space in Inland Empire history, according to CBRE, the Los Angeles-based real estate brokerage company that facilitated the deal, closed last month.
CBRE announced this past week the sale of the Tri-City Corporate Centre, a 17-building, mixed-use office complex at 560 E. Hospitality Lane, totaling more than 1 million square feet, and located on 153 acres in San Bernardino near the 10 and 215 freeway interchange.
“While the office market has lagged, the overall industrial market in the Inland Empire is the top industrial market in perhaps the United States,” broker Michael Longo said. “But (now) you’ve started to see a million square feet of net (office space) absorption in the Inland Empire.”
The new owners are Hines, an international real estate firm, and Oaktree Capital Management. CBRE brokered the transaction for the sellers, Rancon Realty Fund IV & Rancon Realty Fund V.
Officials involved with the deal declined to reveal the financial details of the sale.
L.P. Rancon, the original developer of the center, began construction of the property in 1986 with continued development through 2008. The center, which has a 33 percent vacancy rate, according to Longo, is a mixed-use, master-planned business park with a variety of tenants that include Northrop Grumman, the Art Institute of California, Wells Fargo and CalPERS, among others.
Mark Persico, community development director for San Bernardino, said it is the goal of the new owners to turn around the vacancy rate.
“I definitely think there will be some long-term benefits to the city. They see strengths in the Hospitality Lane market,” Persico said. “My expectation is they want to fill those vacancies and bring more business to the city.”
A new off-ramp being built for the westbound 10 Freeway at Tippecanoe Avenue should also improve traffic flow through the Hospitality Lane corridor and ease congestion, Persico said.
Terry Thompson, director of real estate services for San Bernardino County, said the acquisition should benefit the local economy.
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