CBRE IM, Hillwood Buy Major Inland Empire Logistics Site for $559M

A rendering of the Speedway project. Image courtesy of CBRE Investment Management

In a $559 million deal, Hillwood Investment Properties and  CBRE Investment Management have purchased 364 acres of land, which will host the first phase of Speedway Commerce Center. Auto Club Speedway sold the property in a deal arranged by Corion Properties.

Hillwood and CBRE Investment Management’s acquisition is of the land under the project, with the firms intending to further invest in the project itself, according to a spokesperson.

The sale of the project’s second phase, encompassing 69 acres, is scheduled to close on or before Dec. 31, 2026.

Upon completion, the multi-building logistics campus will total 6.6 million square feet. Located at 9300 Cherry Ave., in Fontana, Calif., the project sits within the western part of the Inland Empire region in the southern part of the state. CBRE Investment Management Portfolio Manager Mary Lang said, in a prepared statement, that the area is one of the world’s top distribution markets.

Buildings at the site will have 40-foot clear heights, cross-dock loading and 185-foot concrete truck courts, as well as parking for employees and more than 100 acres of excess trailer parking.

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Speedway will offer easy access to interstates 15 and 10, as well as the San Bernardino BNSF freight railway’s Intermodal Yard. CBRE Investment Management touted the project’s proximity to the ports of Long Beach and Los Angeles in its statement, which also noted that Inland Empire’s logistics vacancy rate was an attractive 1.2 percent in 2022, with rent growth at 35.4 percent. Fontana itself had a 0.3 percent vacancy rate in 2022, as well as a 36.9 percent rent growth rate.