Ontario, Calif. – Voit Real Estate Services has successfully completed the lease of a 302,080 square-foot industrial/R&D facility in Ontario, California on behalf of Nellson, LLC, a leading full-service bar and powder nutrition provider in North America.
Frank Geraci, Executive Vice President of Voit’s Inland Empire office, represented Nellson as the lessee and IDI Gazeley as the lessor in the $30 million transaction.
“Nellson was planning a move from its four-building aging campus in Irwindale, and was seeking a modern property that could deliver optimal efficiency, increased capacity, and expansion space to support future growth,” explains Geraci, who notes that competition is high for industrial space throughout the Inland Empire market.
“Industrial vacancy rates remain in the low five percent range in spite of the influx of over 77 million square feet of new construction in the past two years,” he says.
“Tightening industrial markets and rising rents in neighboring coastal regions continue to drive businesses inland, resulting in increased demand for premium space in all size ranges in the Inland Empire.”
Geraci notes that securing this facility for Nellson reflects Voit’s ability to meet the needs of both tenants and landlords.
“By sourcing this off-market opportunity, we were able to provide Nellson with a high-profile, centrally-located facility, while simultaneously securing a high-quality tenant on behalf of the property owner,” affirms Geraci. “Further, we were able to identify a property in close proximity to the client’s Irwindale operations, enabling Nellson to retain its experienced local workforce as it relocates.”
Nellson plans to invest $40 to $50 million in the Ontario facility to create a world-class production facility, according to Jamie Better, Nellson’s Chief Executive Officer.
“We plan to create a state-of-the-art manufacturing facility to better serve the rapidly evolving needs of our customers,” Better says. “After careful review, our leadership team concluded that leasing and upgrading a new facility would help us reach that objective most effectively. Our goal is to have the new facility fully operational by the first quarter of 2018.”
Nellson plans to build out a state-of-the-art R&D lab to support corporate R&D efforts, commercial scale-up, and testing of customer formulations; and will create segregated production lines that provide brand confidentiality, maximum allergen control, food safety, and efficient sanitation, as well as flexible scheduling.
Built in 1989, the Ontario industrial facility features 25-foot clear height ceilings, 43 dock-high loading doors, ample parking spaces, and an ESFR sprinkler system. The property offers immediate access to the 10, 60, and 15 freeways, as well as the Ontario International Airport for transportation and distribution.
The property is located at 1000 S. Etiwanda Ave, Ontario, California.
About Voit Real Estate Services
Voit Real Estate Services is a privately held, broker owned Southern California commercial real estate firm that provides strategic property solutions tailored to clients’ needs. Throughout its 40+ year history, the firm has developed, managed and acquired more than 64 million square feet and completed more than $46.5 billion in brokerage transactions encompassing more than 44,500 brokerage deals. Voit’s unmatched expertise in Southern California brokerage, investment advisory, financial analysis, and market research enable the firm to provide clients with forward looking strategies that create value for a wide range of assets and portfolios. Further information is available at www.voitco.com.