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IRVINE, CA--(Marketwired - Mar 10, 2016) - CIP Real Estate (CIP) successfully completed an aggressive acquisition program during 2015 with four transactions totaling $80 million, all in the Inland Empire markets of Southern California. The Irvine-based real estate firm acquired three of the assets in joint venture with its long-time investment partner, Alex. Brown Realty, Inc. (ABR) of Baltimore.
"We were very pleased with our volume of acquisitions in 2015, especially given the tremendous demand for office and industrial acquisitions in Southern California this past year," said Chuck McKenna, principal of CIP Real Estate. "We were able to acquire four assets that are rare in today's environment and that are well below replacement cost and perfectly fit our value-added business plan."
The first of the CIP/ABR joint venture's three acquisitions was the $13.3 million purchase of Center Tower Riverside, one of only three privately-owned Class A office buildings in the Downtown Riverside, California market. Located at 3880 Lemon Street, the five-story, 74,000-square-foot tower and four-level parking structure are immediately adjacent to the Federal and State Courts and Riverside City and County office complexes. CIP has fully leased this asset and is in the process of substantially upgrading and modernizing the building with improvements including natural stone tile in the lobby, glass storefronts with wood paneling for ground floor tenants, upgraded lighting fixtures, and an enhanced EMS (Energy Management System) to optimize energy usage. Major new tenants to the building include Wells Fargo Advisors and Best, Best & Krieger who join long-time tenants Kleinfelder West, Inc, Reid & Hellyer, and the County of Riverside.
The CIP/ABR joint venture purchased two substantial business parks: College Business Park in Upland, California for $34.5 million and Milliken Business Center in Ontario, California for $17.1 million. College Business Park, a 314,000-square-foot office and industrial park, was 96 percent leased to more than 250 tenants, such as PAR Electrical Contractors. Located at the intersection of North Monte Vista Avenue and Foothill Boulevard, College Business Park benefits from its core location in Upland and Claremont, California, directly adjacent to the Claremont Colleges.
Milliken Business Center, a 157,711-square-foot Class A business park, was 95 percent leased upon acquisition from an investment fund managed by Colony Capital. Located at the intersection of South Milliken Avenue and East Lowell Street, Milliken Business Center is centrally located in the Ontario, California market, within the California Commerce Center, a free trade zone immediately adjacent to the Ontario International Airport.
The acquisition of these three assets marks the 16th, 17th and 18th joint venture acquisitions by CIP and ABR since 1998.
Last, CIP completed the $15 million acquisition of Indiana Business Park, a 150,000-square-foot, small unit bay industrial park located near the Tyler Mall in Riverside, California with an investment by its private investment group. The seller was a joint venture of CIP Real Estate and Blue Vista Capital Management and the park was the remaining asset in a larger portfolio of properties acquired during the recession. Indiana Business Park was approximately 95 percent leased upon acquisition. The property was recently completely renovated, making Indiana Business Park the highest quality industrial park in its submarket.
CIP remains focused on acquiring value-added, multi-tenant office, business and industrial parks in strategic locations throughout California, Nevada, Arizona and the Carolinas.
CIP Real Estate is a full service real estate investment and management company focused on the acquisition, development, repositioning and management of office, business and industrial parks. Founded in 1995, CIP Real Estate owns and manages more than 5 million square feet of quality real estate throughout California, Nevada and North Carolina. (www.ciprealestate.com)
Alex. Brown Realty, Inc. is a privately-owned real estate investment manager organized in 1972 and headquartered in Baltimore, Maryland. ABR co-invests with joint venture partners in a broad spectrum of property types located throughout the United States. (www.abrealty.com)