The Caisse de dépôt et placement du Québec’s real estate arm is acquiring two parcels of land in Ontario, California.
Ivanhoé Cambridge intends to develop the land, at a cost of more than $587 million, into Colony Commerce Center, which will consist of 11 industrial buildings, about 280,000 square metres of leasable space.
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“We strongly believe that Colony Commerce Center will allow us to capitalize on the growing demand for rental space by offering modern industrial facilities in one of the best U.S. logistics markets,” said Mario Morroni, executive vice-president of industrial in North America at Ivanhoé Cambridge, in a press release. “Ivanhoé Cambridge has now invested more than US$2.5 billion in the past year in North American industrial real estate and, as we continue to seek opportunities, we intend to substantially grow our investments over the coming years.”
Ivanhoé Cambridge is acquiring the properties from CapRock Partners, a U.S.-based industrial real estate investment firm, which will also be developing the sites.
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“CapRock Partners successfully guided the collaboration of many constituents to solve the myriad of environmental, infrastructure and entitlement challenges over four years to bring this strategic project to life,” said Patrick Daniels, chief executive officer of CapRock Partners, in the release.
The two parcels of land are part of the Inland Empire industrial area of southern California, which is in high demand, according to the release. In 2017, half of the real estate activity in the area was due to activity from e-commerce companies.