SAN BERNARDINO, Calif.--(EON: Enhanced Online News)--Hillwood and Clarion Partners today announced that the more than 950,000 square foot facility under development as part of the AllianceCalifornia project in San Bernardino, CA, will become an Amazon fulfillment center after the building is complete. The joint venture began construction on the facility earlier this year. Amazon is expected to take occupancy as early as this autumn. “We’ve been planning to develop this property for some time, and we’re thrilled that Amazon will be moving in after the facility is completed,” said John Magness, Senior Vice President, Hillwood and leader of Hillwood’s Inland Empire office. “We appreciate all the support from the community, and we look forward to Amazon starting operations in San Bernardino.”
“We are excited to be a part of this project and we look forward to a long and successful relationship with Amazon and the community,” said Stacey Magee, Senior Vice President/Regional Manager for Clarion Partners.
“We appreciate Hillwood and Clarion’s ongoing work and thank Governor Brown and state and local officials for their support, which will allow us to create more than 1,000 full time jobs with benefits in San Bernardino when the facility begins shipping to customers,” said Dave Clark, Amazon vice president, global customer fulfillment.
Hillwood will serve as the developer of the project. The joint venture will serve as the landlord for the facility and will lease the space to Golden State FC LLC once the building is complete. Golden State FC LLC will operate the fulfillment center for Amazon.
The facility will be located on Central Avenue, east of Tippecanoe Avenue.
About Hillwood: Hillwood, a Perot company, is ranked as one of the top commercial real estate investors and developers in the country and the top residential developer in Dallas-Fort Worth. Hillwood’s developments currently house facilities for 58 companies listed on the Fortune 500, Global 500 or Forbes List of Top Private firms. Hillwood is best known for its Alliance brand that includes the 17,000-acre AllianceTexas, 4,474-acre AllianceFlorida at Cecil Commerce Center, and 2,000-acre AllianceCalifornia. For additional information, please visit www.hillwoodinvestmentproperties.com.
About Clarion Partners: Clarion Partners has been a leading U.S. real estate investment manager for 30 years. Headquartered in New York, the firm has offices in major markets throughout the U.S. as well as a presence in Mexico and Brazil. With more than $24 billion in total assets under management, for over 200 institutional investors both domestic and international, Clarion Partners offers a broad range of real estate strategies across the risk/return spectrum. More information about the firm is available at www.clarionpartners.com.
About Amazon.com Amazon.com, Inc. (NASDAQ: AMZN), a Fortune 500 company based in Seattle, opened on the World Wide Web in July 1995 and today offers Earth’s Biggest Selection. Amazon.com, Inc. seeks to be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online, and endeavors to offer its customers the lowest possible prices. Amazon.com and other sellers offer millions of unique new, refurbished and used items in categories such as Books; Movies, Music & Games; Digital Downloads; Electronics & Computers; Home & Garden; Toys, Kids & Baby; Grocery; Apparel, Shoes & Jewelry; Health & Beauty; Sports & Outdoors; and Tools, Auto & Industrial. Amazon Web Services provides Amazon’s developer customers with access to in-the-cloud infrastructure services based on Amazon’s own back-end technology platform, which developers can use to enable virtually any type of business. The new latest generation Kindle is the lightest, most compact Kindle ever and features the same 6-inch, most advanced electronic ink display that reads like real paper even in bright sunlight. Kindle Touch is a new addition to the Kindle family with an easy-to-use touch screen that makes it easier than ever to turn pages, search, shop, and take notes – still with all the benefits of the most advanced electronic ink display. Kindle Touch 3G is the top of the line e-reader and offers the same new design and features of Kindle Touch, with the unparalleled added convenience of free 3G. Kindle Fire is the Kindle for movies, TV shows, music, books, magazines, apps, games and web browsing with all the content, free storage in the Amazon Cloud, Whispersync, Amazon Silk (Amazon’s new revolutionary cloud-accelerated web browser), vibrant color touch screen, and powerful dual-core processor.
Amazon and its affiliates operate websites, including www.amazon.com, www.amazon.co.uk, www.amazon.de, www.amazon.co.jp, www.amazon.fr, www.amazon.ca, www.amazon.cn, www.amazon.it, and www.amazon.es. As used herein, “Amazon.com,” “we,” “our” and similar terms include Amazon.com, Inc., and its subsidiaries, unless the context indicates otherwise.
Forward-Looking Statements This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Actual results may differ significantly from management's expectations. These forward-looking statements involve risks and uncertainties that include, among others, risks related to competition, management of growth, new products, services and technologies, potential fluctuations in operating results, international expansion, outcomes of legal proceedings and claims, fulfillment center optimization, seasonality, commercial agreements, acquisitions and strategic transactions, foreign exchange rates, system interruption, inventory, government regulation and taxation, payments and fraud. More information about factors that potentially could affect Amazon.com's financial results is included in Amazon.com's filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and subsequent filings.
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Just weeks after announcing a partnership, Hillwood Investment Properties and Brookfield Asset Management have acquired their first property. The Dallas-based commercial property firm and its Canadian investment partner said Tuesday that they have acquired a 328,691-square-foot warehouse in Rialto, Calif. The building was purchased from the California Public Employees' Retirement System. Terms of the sale were not disclosed. Last month Hillwood said it has created a new venture with Toronto-based Brookfield to invest up to $1 billion in industrial properties during the next three years. Hillwood is the developer of the 17,000-acre AllianceTexas commercial and residential project north of Fort Worth. The firm has industrial and commercial properties across the country.
While I was chatting recently with Ross Perot Jr. about Hillwood and its long history in Dallas-Fort Worth real estate for the Dallas Business Journal's 20th anniversary of Best Real Estate Deals, he mentioned that he's seeing more opportunity for investment in California properties.
It seems that our conversation was quite timely.
This morning, Dallas-based Hillwood Investment Properties announced that the company, in partnership with Brookfield Asset Management, has acquired the 328,691-square-foot South Rialto Logistics Center in Rialto, Calif.
The Class A industrial building sits on 26 acres and has nine acres available for construction or parking stalls. This is the first property the joint venture has acquired since announcing it would invest up to $1 billion in industrial properties over the next three years.
Brian Wilson represented Hillwood and Brookfield. Darla Longo and David Consani of CBRE and Rick John represented the seller, California Public Employees' Retirement System.
The property is available for lease.
Dallas, TX — Hillwood Investment Properties (Hillwood), in a partnership with Brookfield Asset Management (Brookfield), has acquired the 328,691-square-foot South Rialto Logistics Center (formally Franzman Ranch) in California’s Inland Empire.
South Rialto Logistics Center is a Class A, state-of-the-art industrial building located on more than 26 acres in Rialto, CA. The property also has about nine acres available for construction of an additional building or for housing 220 trailer parking stalls.
“Hillwood is proud to make another investment in the Inland Empire with South Rialto Logistics Center,” said John Magness, senior vice president for Hillwood Investment Properties. “We see the Inland Empire as one of the country’s strongest markets, with significant leasing activity and a rapidly decreasing supply of Class A industrial buildings like South Rialto Logistics Center.”
This marks the first property Hillwood and Brookfield have acquired since announcing the creation of a partnership to invest up to $1 billion in industrial properties over the next three years.
South Rialto Logistics Center’s strategic location in the city of Rialto offers excellent access to I-10, I-215 and the 60 Freeway in Southern California to service the Western United States. The property will offer future tenants a low coverage ratio that provides a secure campus environment with fencing and natural boundaries.
California Public Employees' Retirement System (CalPERS) was the seller of the property. Brian Wilson represented Hillwood and Brookfield and Darla Longo and David Consani of CB Richard Ellis and Rick John of Daum Commercial represented CalPERS.
South Rialto Logistics Center is located on 3700 S. Riverside Avenue in Rialto, CA. The property is available immediately for lease.
About Brookfield Asset Management Brookfield Asset Management is a global alternative asset manager focused on property, renewable power, infrastructure and private equity, with approximately US$150 billion of assets under management, which includes over US$83 billion of property assets under management in North and South America, Europe and Australia.
In addition, the company provides clients with an extensive array of real estate advisory, property and investment services. Brookfield is publicly listed on the NYSE, TSX and Euronext Amsterdam under the symbol BAM, BAM.A and BAMA, respectively. For additional information on the company, please visit http://www.brookfield.com/.
About Hillwood Hillwood, a Perot company, is ranked as one of the top commercial real estate investors and developers in the country and the top residential developer in Dallas-Fort Worth. Since its inception in 1988, Hillwood Communities, the residential division for Hillwood, has built 70 communities throughout the United States and Costa Rica, and has developed more than 22,000 lots. Currently, the company oversees 34 active communities in 28 cities and seven states. Hillwood’s developments currently house facilities for 58 companies listed on the Fortune 500, Global 500 or Forbes List of Top Private firms. Hillwood is best known for its Alliance brand that includes the 17,000-acre AllianceTexas, 4,474-acre AllianceFlorida at Cecil Commerce Center, and 2,000-acre AllianceCalifornia. For additional information, please visit hillwood.com and hillwoodcomunities.com.
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Dallas, TX — Hillwood, a Perot Company, has hired L.M. Cummings as president of Hillwood West, a division of Hillwood that will invest in real estate opportunities with developers, builders, lenders and landowners in the Western United States, primarily in northern and southern California. Hillwood has been active in the California market for more than 25 years, completing more than 30 real estate projects. Cummings previously led Hillwood West for ten years from 1992 to 2002, and has been in the real estate industry for more than 30 years. He has successfully led more than $1.5 billion in real estate transactions, including residential and industrial land, single-family residential homebuilding, industrial, office, retail, mixed-use, golf courses and resort properties in Texas, California, Hawaii and Costa Rica. “We would like to welcome L.M. Cummings back to Hillwood and are confident his expertise and leadership will successfully guide Hillwood West as we expand our investment portfolio on the West Coast,” said Ross Perot, Jr., chairman of Hillwood. Most recently Cummings was co-founder and a partner of Scala Real Estate Partners, LP and provided the sourcing, negotiation and oversight of Scala’s new investments. Prior to Scala, Cummings was co-founder of MSJ Partners, LLC and actively guided the strategic planning of the company’s operations. Prior to joining Hillwood in 1992, Cummings opened The Staubach Company’s first West Coast office in 1988 in Irvine, California. Cummings will office in Aliso Viejo, CA and can be reached at 949-916-7173 and LM.Cummings@hillwood.com. About Hillwood Hillwood, a Perot company, is ranked as one of the top commercial real estate investors and developers in the country and the top residential developer in Dallas-Fort Worth. Since its inception in 1988, Hillwood Communities, the residential division for Hillwood, has built 70 communities throughout the United States and Costa Rica, and has developed more than 22,000 lots. Currently, the company oversees 34 active communities in 28 cities and seven states. Hillwood’s industrial developments currently house facilities for 58 companies listed on the Fortune 500, Global 500 or Forbes List of Top Private firms. Hillwood is best known for its Alliance brand that includes the 17,000-acre AllianceTexas, 4,474-acre AllianceFlorida at Cecil Commerce Center, and 2,000-acre AllianceCalifornia. For additional information, please visit hillwood.com and hillwoodcomunities.com.
With the U.S. industrial market improving, Brookfield Asset Management and Hillwood announced a joint venture that is expected to invest up to $1 billion in industrial properties over the next three years.
Backed by an equity commitment of $400 million, the joint venture will acquire, develop and manage industrial property, mainly large warehouses, across the United States. The companies said it was one of the more significant investments in industrial real estate since the U.S. recession began in 2008. The companies noted they have a wealth of combined experience and resources to make a significant impact on the market. Hillwood, a Dallas-based real estate investor and developer owned by Ross Perot Jr., will look for the properties.
“The partnership between Brookfield and Hillwood is not only the right fit, it’s happening at the right time,” Perot said. “Industrial development slowed during the downturn due to a lack of equity and debt. Given the liquidity and resources supporting our investment, our joint venture is well-positioned to benefit from renewed demand for industrial space which will increase as the economy continues to show signs of improvement.”
A year-end report by services firm Cushman & Wakefield Inc. noted that demand had “accelerated significantly” in 2011 at levels not seen since before the recession and was expected to continue this year. The national overall vacancy rate declined to 10 percent in 2011 from 10.8 percent the previous year, and leasing activity increased by 20.5 percent to 417.1 million square feet in 2011 from 345.8 million square feet leased in 2010. Cushman said it was the highest level of leasing activity seen in the U.S. industrial market since 2007. Many of the major markets in the study reported increased demand with leasing activity and absorption rates rising and overall vacancy rates declining. Several markets, particularly in Pennsylvania along the I-81/I-78 corridors and in Pittsburgh, were reporting the need for more development.
“As long-term, value-oriented real estate investors, we believe this is an excellent time to selectively build a portfolio of high-quality industrial properties, and we look forward to expanding our relationship with Hillwood,” said David Arthur, managing partner of Brookfield Asset Management.
Brookfield Asset Management, based in Toronto, is a global alternative asset manager focused on property, renewable power, infrastructure and private equity. It has approximately $150 billion of assets under management, including $83 billion in property assets in North and South America, Europe and Australia.
Hillwood is the top residential developer in the Dallas-Fort Worth area and ranked as one of the top commercial real estate investors and developers in the country. One of its biggest developments is AllianceTexas, a 17,000-acre, master-planned, mixed-use community that features industrial, office and retail space for nearly 300 companies. It is anchored by the multi-modal inland port known as the Alliance Global Logistics Hub. Hillwood has developed similar projects in California and Florida. It also has industrial properties in Pennsylvania, South Carolina, Georgia, and Mississippi.
Alliance, Texas developer Hillwood has inked a deal with Canadian firm Brookfield Asset Management to form a joint venture to acquire, develop and manage up to $1 billion in industrial property throughout the United States.
With an equity commitment of $400 million, the partnership is expected to deploy up to $1 billion within the first three years.
"The partnership between Brookfield and Hillwood is not only the right fit, it's happening at the right time," said Ross Perot Jr., chairman of real estate firm Hillwood in a release. "Industrial development slowed during the downturn due to a lack of equity and debt. Given the liquidity and resources supporting our investment, our joint venture is well-positioned to benefit from renewed demand for industrial space which will increase as the economy continues to show signs of improvement."
Brookfield is a global asset manager focused on property, renewable power, infrastructure and private equity, with about $150 billion of assets under management – with more than $83 billion of property assets under management in North and South America, Europe and Australia. The firm is listed on the NYSE, TSX and Euronext Amsterdam under the symbol BAM, BAM.A and BAMA, respectively.
"As long-term, value-oriented real estate investors, we believe this is an excellent time to selectively build a portfolio of high-quality industrial properties, and we look forward to expanding our relationship with Hillwood," said David Arthur, managing partner at Brookfield Asset Management, in a release. "This initiative expands the scope of our real estate platform in an exciting asset class, strengthening our global property operations in line with the expected launch later this year of our flagship property vehicle, Brookfield Property Partners."
The partnership is expected to deploy up to $1 billion over the next three years
DALLAS, March 14, 2012 — Brookfield Asset Management (NYSE: BAM, TSX: BAM.A) and Hillwood, a Dallas/Fort Worth-based real estate investor and developer owned by Ross Perot, Jr., announced today a joint venture to acquire, develop and manage industrial property, principally large warehouses, across the United States. With an equity commitment of $400 million, the partnership is expected to deploy up to $1 billion within the first three years. Hillwood will locate industrial property investments with potential for value creation. The partnership represents one of the more significant commitments to U.S. industrial real estate since the economic downturn that began in 2008. With a wealth of combined experience in investments, acquisitions, development, finance, accounting, legal, leasing and property and asset management, the partnership has the resources and expertise to establish a significant presence in the industrial warehouse market. “The partnership between Brookfield and Hillwood is not only the right fit, it’s happening at the right time,” said Ross Perot, Jr., Chairman, Hillwood. “Industrial development slowed during the downturn due to a lack of equity and debt. Given the liquidity and resources supporting our investment, our joint venture is well-positioned to benefit from renewed demand for industrial space which will increase as the economy continues to show signs of improvement.” “As long-term, value-oriented real estate investors, we believe this is an excellent time to selectively build a portfolio of high-quality industrial properties, and we look forward to expanding our relationship with Hillwood,” said David Arthur, Managing Partner at Brookfield Asset Management. “This initiative expands the scope of our real estate platform in an exciting asset class, strengthening our global property operations in line with the expected launch later this year of our flagship property vehicle, Brookfield Property Partners.”
About Brookfield Asset Management Brookfield Asset Management is a global alternative asset manager focused on property, renewable power, infrastructure and private equity, with approximately US$150 billion of assets under management, which includes over US$83 billion of property assets under management in North and South America, Europe and Australia. In addition, the company provides clients with an extensive array of real estate advisory, property and investment services. Brookfield is publicly listed on the NYSE, TSX and Euronext Amsterdam under the symbol BAM, BAM.A and BAMA, respectively. For additional information on the company, please visit http://www.brookfield.com/. About Hillwood Hillwood, a Perot company, is ranked as one of the top commercial real estate investors and developers in the country and the top residential developer in Dallas-Fort Worth. The company's developments currently house facilities for 58 companies listed on the Fortune 500, Global 500 or Forbes List of Top Private firms. Hillwood is best known for its Alliance brand that includes the 17,000-acre AllianceTexas, 4,474-acre AllianceFlorida at Cecil Commerce Center, and 2,000-acre AllianceCalifornia. For additional information about the company, please visit http://www.hillwood.com/. * * * * * Note: This news release contains forward-looking information within the meaning of Canadian provincial securities laws and applicable regulations and “forward-looking statements” within the meaning of the “safe harbour” provisions of the United States Private Securities Litigation Reform Act of 1995. The words “expected”, “continue”, “believe” and “will” and other expressions are predictions of or indicate future events, trends or prospects or identify forward-looking statements. Forward-looking statements in this news release include statements with respect to acquisition, development and management of industrial properties by the joint venture, the joint venture’s presence in the industrial warehouse market, the demand for industrial space and the outlook for investment in industrial and logistics-driven real estate. Although we believe that the joint venture’s anticipated future results, performance or achievements expressed or implied by the forward-looking statements and information are based upon reasonable assumptions and expectations, the reader should not place undue reliance on forward-looking statements and information as such statements and information involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to differ materially from anticipated future results, performance or achievements expressed or implied by such forward-looking statements and information. Factors that could cause actual results to differ materially from those contemplated or implied by forward-looking statements include the following: economic and financial conditions in the United States; the behaviour of financial markets, including fluctuations in interest and exchange rates; availability of equity and debt financing; strategic actions including the ability to acquire or develop high quality assets; the ability to complete and effectively integrate acquisitions into existing operations and the ability to attain expected benefits; acts of God, such as earthquakes and hurricanes; the possible impact of international conflicts and other developments including terrorist acts; and other risks and factors detailed from time to time in the form 40-F of Brookfield Asset Management Inc. (“Brookfield”) filed with the Securities and Exchange Commission as well as other documents filed by Brookfield with the securities regulators in Canada and the United States, including Brookfield’s most recent Management’s Discussion and Analysis of Financial Results under the heading “Business Environment and Risks.” We caution that the foregoing factors that may affect future results are not exhaustive. When relying on our forward-looking statements to make decisions with respect to Brookfield, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Except as required by law, we undertake no obligation to publicly update or revise any forward-looking statements or information, whether written or oral, as a result of new information, future events or otherwise.
(RTTNews) - Brookfield Asset Management (BMA) Wednesday announced that it has partnered with real estate investor, Hillwood to create a new joint venture to acquire, develop and manage industrial property, principally large warehouses, across the United States.
Both the Brookfield Asset Management and Hillwood have agreed to invest $400 million each for the proposed joint venture.
It has been projected that the joint venture would deploy up to $1 billion within the first three years. It would be the responsibility of Hillwood to locate industrial property investments with potential for value creation.
David Arthur, Managing Partner at Brookfield Asset Management, commented: "This initiative expands the scope of our real estate platform in an exciting asset class, strengthening our global property operations in line with the expected launch later this year of our flagship property vehicle, Brookfield Property Partners."
Brookfield Asset Management Inc. (BAM, BAM.A.T) agreed to an industrial property-focused joint venture with a Texas real-estate investor and developer owned by Ross Perot Jr.
The venture, which is expected to mostly include large warehouses in the U.S., has an equity commitment of $400 million, and expects to invest as much as $1 billion within the first three years.
Brookfield and Perot's Hillwood said in a statement the venture represents one of the more significant commitments to U.S. industrial real estate since the economic downturn that began in 2008.
The Toronto investment giant established a bridgehead in U.S. real estate during the downturn of the early 1990s. Through much of the last decade, Brookfield has primarily focused its real-estate efforts in the U.S. on building its office holdings.
Hillwood Chairman Ross Perot Jr., son of the computer billionaire and former U.S. third-party presidential candidate, said the partnership is well-positioned to benefit from renewed demand for industrial space that will increase as the economy continues to strengthen.
Brookfield Managing Partner David Arthur said the move expands the scope of the company's real-estate platform in an exciting asset class and strengthens its global property operations ahead of the expected launch later this year of its flagship property vehicle, Brookfield Property Partners.
Brookfield shares were down 9 cents at $32.22 in early trading. The stock is up about 17% this year.
Dallas-based Hillwood and Toronto’s Brookfield Asset Management are teaming up to buy, develop and manage industrial properties across the United States. Backed by an equity commitment of $400 million, the partners hope to place up to $1 billion in the next three years.
“The partnership between Brookfield and Hillwood is not only the right fit, it’s happening at the right time,” said Ross Perot, Jr., chairman of Hillwood, in a statement. “Industrial development slowed during the downturn due to a lack of equity and debt. Given the liquidity and resources supporting our investment, our joint venture is well-positioned to benefit from renewed demand for industrial space which will increase as the economy continues to show signs of improvement.”
David Arthur, managing partner of Brookfield Asset Management, said the initiative will expand the scope of the firm’s real estate platform, strengthen its global property operations, and is in line with the expected launch later this year of Brookfield Property Partners. “As long-term, value-oriented real estate investors, we believe this is an excellent time to selectively build a portfolio of high-quality industrial properties, and we look forward to expanding our relationship with Hillwood,” he said.
Here is additional information, taken from a joint press release:
Brookfield Asset Management is a global alternative asset manager focused on property, renewable power, infrastructure and private equity, with approximately $150 billion of assets under management, which includes more than $83 billion of property assets under management in North and South America, Europe and Australia. In addition, the company provides clients with an extensive array of real estate advisory, property and investment services. Brookfield is publicly listed on the NYSE, TSX and Euronext Amsterdam under the symbol BAM, BAM.A and BAMA, respectively.
Hillwood, a Perot company, is ranked as one of the top commercial real estate investors and developers in the country and the top residential developer in Dallas-Fort Worth. The company’s developments currently house facilities for 58 companies listed on the Fortune 500, Global 500 or Forbes List of Top Private firms. Hillwood is best known for its Alliance brand, which includes the 17,000-acre AllianceTexas, 4,474-acre AllianceFlorida at Cecil Commerce Center, and 2,000-acre AllianceCalifornia.
Developer Hillwood said Wednesday that it is teaming up with Brookfield Asset Management to invest in $1 billion in industrial and commercial properties.
The real estate company owned by Dallas businessman Ross Perot Jr. is best known for its big AllianceTexas development north of Fort Worth.
Now Hillwood and its new partner Brookfield are committing $400 million to buy, develop and manage industrial buildings across the country during the next three years.
Hillwood will be in charge of locating the properties.
The company said that the new partnership is one of the largest such ventures since the start of the recession in 2008.
“The partnership between Brookfield and Hillwood is not only the right fit, it’s happening at the right time,” Perot said in a statement. “Industrial development slowed during the downturn due to a lack of equity and debt.
"Given the liquidity and resources supporting our investment, our joint venture is well-positioned to benefit from renewed demand for industrial space which will increase as the economy continues to show signs of improvement.”
Brookfield is a Toronto-based public real estate company with about $150 billion of assets under management.
The company has previously invested in North Texas real estate.
“As long-term, value-oriented real estate investors, we believe this is an excellent time to selectively build a portfolio of high-quality industrial properties, and we look forward to expanding our relationship with Hillwood,” David Arthur, Managing Partner at Brookfield Asset Management, said.
Retailer Kohl’s Corp. said Tuesday that it will build a distribution center south of Dallas in DeSoto.
The 951,000-square-foot industrial building will be near Interstate 35E and Centre Park Boulevard and will open this summer.
Kohl’s said the new warehouse will be used to fill orders from its Internet sales business.
“This new facility will ensure that Kohl’s is able to accommodate the tremendous growth of our Kohls.com business,” Ken Bonning, Kohl’s executive vice president of store planning and logistics, said in a prepared statement.
“We currently operate 84 stores in Texas and are pleased to expand our presence with this new facility,” Bonning said.
“We anticipate creating approximately 400 jobs for the community in a phased approach over the next three years.”
Kohl’s operates a dozen warehouses in the U.S. and has distribution centers for its website in San Bernardino , Calif.; Monroe, Ohio; and Edgewood, Md.
Wisconsin-based Kohl’s said it will hire about 200 workers for the DeSoto project before the building opens.
Late last winter, when it was announced that Hewlett Packard will lease 1.4 million square feet of San Bernardino warehouse space, David Burback, who runs Grubb & Ellis’ Ontario office, said it was the deal of the year.
It was a bold statement considering there was still more than 10 months of 2011 left on the calendar. But Burback was right. CT Realty Investors’ HP lease was named Industrial Lease Transaction of the Year at the annual Rexie Awards, which marks the top accomplishments in commercial real estate.
The Inland Empire Chapter of NAIOP, the trade group for commercial real estate, held its awards luncheon Tuesday. Winners in other categories included:
Industrial Portfolio Sale of the Year: Industrial Income Trust purchases four buildings totaling 1.6 million square feet
Industrial Building Sale of the Year: Manulife Financial purchases 819,004 square feet in Fontana
Industrial Land Acquisition of the Year: Alere Property Group purchases 29.51 acres in San Bernardino County
Industrial Leasing Broker of the Year: Colliers International: Steve Bellitti & Thomas Taylor Industrial Investment Broker of the Year: CB Richard Ellis, Darla Longo & Barbara Emmons Public Partner of the Year: San Bernardino County
Industrial Developer of the Year: Watson Land Company – 616,542 square foot building in Redlands
Industrial Owner of the Year: Prologis
These were the honorees in each category for both professionals and projects: Industry Leader of the Year: Doug Dupree, City of San Bernardino Fire Department; Dean Brown, Tejon Ranch; John Burroughs, Commerce Construction/Majestic Realty Co.; Matthew Hargrove, CBPA; Dennis Roy, RGA Office of Architectural Design; Ned Sciortino, Hillwood; Kevin Scott, International Code Council.
Kohl's (NYSE: KSS) said Tuesday that it will open a new distribution center in DeSoto in south Dallas County.
The Wisconsin-based department store chain had been considering DeSoto, along with other locations, in October. At the time, Dallas County was offering a 10-year, 75-percent abatement on real and business personal property.
The company said in a press release Tuesday that is entered into an agreement to build a 951,000-square-foot fulfillment center for Kohls.com at Interstate 35 and Centre Park Boulevard. The building, at Hillwood’s Crossroads Trade Center, is expected to be completed this summer, at which time Kohl’s said it would close on the agreement.
The facility is expected to initially create 200 jobs and a total of 400 over the next three years, Kohl’s said. Hiring will begin March 1.
Kohl’s, which has 84 stores in Texas, operates 13 distribution centers across the country. It expects sales on Kohls.com to reach $1 billion this fiscal year.
Commerce, GA — Hillwood Investment Properties (Hillwood), a Perot company, in a joint venture with Brookfield Real Estate Opportunity Fund II (Brookfield), has purchased Commerce 85 Distribution Center, a 962,280-square-foot Class A, state-of-the-art distribution facility located in the Atlanta metro area.
Hillwood and Brookfield plan to reposition the asset by immediately investing about $1.2 million in improvements to the building and offering the facility for lease to prospective warehousers, distributors, and manufacturers.
“We believe the Atlanta area is a high growth market, and our purchase of Commerce 85 Distribution Center brings great value to prospective tenants,” said Preston Herold, senior vice president for Hillwood. “Available incentives for eligible prospective tenants include customer choice electrical power and Jackson County tax abatements. These incentives — combined with one of the lowest combined tax millage rates in the Atlanta metro area and Hillwood's below replacement cost purchase price — result in the most competitive total occupancy cost package for a Class A building in the Atlanta metro area.”
Commerce 85 Distribution Center was built in 2007 and is located at 1523 Steve Reynolds Industrial Blvd., Commerce, Georgia. It is accessible via both the SH-98 interchange and US-441 interchange with Interstate 85.
Todd Barton, first vice president, and Greg Haynes, senior vice president of CB Richard Ellis (CBRE), represented the buyer in the purchase of the property and will also handle the leasing.
About Brookfield Real Estate Opportunity Group Brookfield Real Estate Opportunity Group is a well-capitalized and sponsored real estate fund investing in commercial real estate opportunities throughout North America. The Group was formed in 2004 and has since acquired assets exceeding $2 billion. The Group’s sponsor is Brookfield Asset Management Inc. (“Brookfield”) (NYSE: BAM). Brookfield is a leading global alternative asset manager focused on the real estate, renewable power, and infrastructure sectors.
With over $150 billion in assets under management, Brookfield has a considerable presence in commercial real estate, with approximately $70 billion under management.
About Hillwood Hillwood, a Perot company, is ranked as one of the top commercial real estate investors and developers in the country and the top residential developer in Dallas-Fort Worth. The company's developments currently house facilities for 58 companies listed on the Fortune 500, Global 500 or Forbes List of Top Private firms. Hillwood is best known for its Alliance brand that includes the 17,000-acre AllianceTexas, 4,474-acre AllianceFlorida at Cecil Commerce Center, and 2,000-acre AllianceCalifornia. For additional information about the company, please visit http://www.hillwood.com/.
The quest to replace some 10,000 jobs that disappeared when the military abandoned Norton Air Force Base in 1994 is evident today in the corporate names attached to brand new warehouses, distribution centers and a corporate jet terminal.
More than 4,000 jobs have been created or relocated to the 2,100-acre site. Nearly half are at Stater Bros. Markets' palatial headquarters and distribution center.
But the redevelopment effort hasn't come without a high price and significant hurdles.
Some $1.2 billion from taxpayers and private developers has been invested so far to redevelop the 2,100-acre base. The Inland Valley Development Agency, a group of elected officials appointed from San Bernardino County's east valley that formed more than 20 years ago to oversee reviving the base, plans to spend at least another $480 million of taxpayer funds in the next 10 years.
Officials with the IVDA and its related San Bernardino International Airport Authority have high hopes for the area to serve as a logistics hub and home to companies in need of skilled workers. The airport could have 750,000 passengers annually hustling to gates by 2015, not counting those who may land there, according to airport officials' forecasts.
Their efforts would eventually be worth $1.2 billion annually to the region's economy and $500 million paid out annually to fewer than 10,000 workers, according to a recent Cal State San Bernardino and Cal State Fullerton study looking at the economic impact of the base's redevelopment.
When Dennis Hansberger arrived on the boards of the IVDA and airport authority in 1997, he thought Norton's buildings, roads, runway and land had to be worth something, considering the vibrant economic impact the base, built in 1942, had on the surrounding area. But with the personnel gone, what remained had less than no value.
"It was a real economic learning experience for us," Hansberger said. The longtime San Bernardino County supervisor was a member of the IVDA and airport authority until he lost his re-election bid to Neil Derry, now a member of the agency's board. It took years for the IVDA to negotiate land transfers with the Air Force and millions of dollars to demolish buildings no longer up to code and clean other areas with hazardous materials.
In 1990, a largely unknown land developer, Iddo Benzeevi, was hired to be the master developer after he proposed building warehouses and distribution centers, but months later, negotiations fell apart after officials rejected his proposals over concerns about financing. Benzeevi has since raised his Inland profile, more recently with the nearly finished Skechers distribution center in Moreno Valley.
Between 1996 and 1998, a developer proposed a luxury hotel, ice skating rink and sports arena. They never happened.
In 1997, a 157-acre international trade center was scuttled after another developer missed deadlines.
DEVELOPER'S VISION
Then Hillwood Development Corp. saw an opportunity. John Magness, an executive with the company, started looking in the Inland area for space to develop in 1999, analyzing all three largely vacant Air Force bases in the region: Norton; George, also closed in the Adelanto area of the High Desert; and March, which was converted into a reserve base.
Base conversion was hardly easy, but Hillwood had done it before in Texas.
"It keeps away the competition, the more complicated it is," Magness said in a recent interview. "With chaos, there comes opportunity."
His company would lay down the infrastructure, do the marketing and craft the master plan.
The company signed its deal in 2002 with the IVDA. Hillwood signed toy-maker Mattel, its first tenant, the next year.
Hillwood, led by Ross Perot Jr., the son of one-time presidential candidate H. Ross Perot, has spent $300 million to $400 million of its own money building up the warehouse and distribution spaces on 500 acres of former base property that surrounds the airport.
The incentive: getting to buy land at a low price and "working our butts off to improve the value of it," Magness said.
Hillwood pays property taxes, much of which goes back to the IVDA, which can put the funds toward building roads or other infrastructure.
In San Bernardino, Magness said his company did what it aims to do everywhere: over-deliver and under-promise.
It was supposed to develop 2 million square feet by 2009. It did so four years early.
"We know what we're doing. We know how to market the property," he said.
Hillwood officials estimate 4,810 jobs have been created or relocated by the companies occupying 8.8 million square feet of new commercial and industrial space in and around the base, including more than 2,000 at the Stater Bros. headquarters. Hillwood has 4.8 million square feet more to build.
The university studies looking at the economic impact, though, had figures closer to 3,610. The airport, in contrast, has created roughly 500 jobs, largely through aircraft maintenance firms such as Certified Aviation Services, which has contracts to maintain Virgin America's fleet.
The Texas company plans to start construction before the end of the year on another 950,000-square-foot space south of the runway. Magness said he expects to be done building in three to five years.
REDEVELOPMENT
Perhaps no one has reused former Norton Air Force Base property in a more pure sense than Kelly Space & Technology, the first business to move in after the base closed. While others may have been turned off by the thick, explosives-resistant glass and control rooms that would have cost a hefty sum to tear out or rehab, Kelly Space CEO Mike Gallo saw exactly what he wanted.
"I knew this was a gem," he said.
There his company could test jet engines and rockets or conduct more down-to-earth experiments on items such as flat-screen televisions, cellular phones by testing their resistance to heat, sandstorms, humidity, air pressure changes and more.
"We get to blow things up. We get to fire bullets at things," he said recently. A flight simulator chamber was converted into a vibration bay that can help product manufacturers find out whether their goods will handle a shaky trip in the back of a semi-truck without being damaged.
What if a company wanted to ship its product by boat? Kelly Space tests what the salty and foggy conditions might do.
KNEW THE TURF
Gallo was a second lieutenant in civil engineering stationed at the base from 1980 to 1984. He started Kelly Space in 1993 and moved it to Norton a year later, starting with a 500-square-foot office with eight employees and growing into five buildings on 30 acres with about 50 workers. Including his nonprofit Technical Employment Training Inc. trade school, he leases six buildings, including the base's old 10,000-square-foot retail store.
With a 20-year lease through 2014 with options to renew in 10-year increments thereafter, Gallo has no intention of taking his company anywhere else.
Besides Gallo, there have been numerous investments at the base by agencies and businesses that recognized its value.
From 1994 through July, the Inland Valley Development Agency and airport authority have been given $170.5 million in federal, state and local grants, with the Federal Aviation Administration providing more than a third. The local agency and airport authority paid $10.2 million to match those grants.
Stater Bros. spent more than $300 million to build its headquarters.
The grocery chain had wanted to consolidate its operations, which were spread across 11 buildings in three cities. When word got out that the company was looking for space, "any number of people became our new best friend," said Bruce Varner, legal counsel for the grocer.
WELL LOCATED
Jack Brown , Stater Bros. CEO and chairman, ultimately chose Norton, where he said he had spent many hours at the officer's club as a child with friends whose parents served at the base at the time. But Brown didn't move his headquarters there solely for sentimental reasons, he said. He's near interstates 10 and 215 and Highway 60.
"It was a good, solid business decision," he said.
He thinks airlines are missing out on an opportunity, he said. He has written to Southwest Airlines to tell the company about the airport in Stater Bros.' backyard.
Even though his company doesn't necessarily need a passenger airport around the corner, he said landing an airline should be the No. 1 priority for the sake of the community.
But reusing the runway by creating an airport and luring a commercial airline has proved difficult.
Jim Monger, 76, was San Bernardino airport's aviation director until he retired to Montana in 2000.
He said the airport chased every airline it could in those days, including Southwest and United. His preference was always to build up air cargo service. UPS came to look at the airport, but the runway at the time was visibly crumbling, he said.
"Ontario (International Airport) was ready for them and we were not," he said.
In 1998, Casino Express Airlines began short-lived twice-monthly flights between the airport and casinos in Elko, Nev. The $43 round-trip fare in some cases included a night's stay at the airline owner's Nevada hotels. Less than a year later, the airline had stopped flying out of San Bernardino as well as Burbank, San Diego and Santa Barbara, saying that the growth of nearby tribal casinos made Inland gamblers less apt to fly for a chance to win big.
"About every time we thought we had somebody cinched down to be a complete user of it, we had to do work on the runway," he said. In 2004 and 2005, the airport finally rehabilitated the runway with $36 million in federal funding.
When it was hired to be the master developer of the base in 2002, Hillwood also had the rights to develop the airport, so it marketed San Bernardino as a destination for companies that make airplanes or aircraft components, Magness said.
"Most of them have written off California," he said, opting to operate in Mississippi, Texas, South Carolina , Alabama and elsewhere. "We tried," he said, adding that the company also had lengthy meetings with Boeing.
"Early on, we cast a very, very wide net," he said.
Given the 10,000-foot runway, officials debated creating a cargo airport to suit a company such as UPS or a commercial airport to serve travelers.
A FORTUNATE LOSS
German shipping giant DHL scouted Southern California for a warehouse hub, but in 2004 San Bernardino airport lost in a bidding war to March Air Reserve Base. DHL eventually gave up on its North American air cargo operations and has left its massive shipping center in Riverside deserted since December 2008, only recently sub-leasing it to an aircraft parts manufacturer.
Nearly everyone connected with Norton's redevelopment calls it the best loss they've ever experienced.
After it became clear that the agencies wanted to focus on developing a commercial airport for passengers, Hillwood gave up its rights to develop it. Cargo airports are what they build, Magness said.
The IVDA's sister agency, the San Bernardino International Airport Authority, awarded two no-bid agreements in 2007 to first-time airport developer and convicted felon Scot Spencer, who promised to bring in an airline.
RAVES, MISGIVINGS
The Million Air corporate jet facility that Spencer developed is "marvelous," Monger said. So is the commercial development Hillwood built around it, he said. Monger has been less impressed with the passenger terminal. It has cost the Inland Valley Development Agency more than $100 million to build the four-gate passenger terminal, but the airport authority hasn't landed an airline.
In the meantime, traffic at nearby Ontario International Airport has fallen off by more than a third since 2007.
Every night between 9:30 and 10, Hansberger, the former San Bernardino County supervisor, takes his dog into his Redlands backyard for one last "visit" before morning and he counts the airplanes going west toward Ontario airport or LAX.
A year and a half ago, he could reliably count six planes within two or three minutes each night. Now it's rare that he sees one, he said.
Hansberger blames the economy and says it's the same reason why no commercial airlines have flown to the San Bernardino airport. Nonetheless, he is as committed today to seeing the airport take flight as he was when he was on the board.
"If we can't succeed today, we should be ready to succeed when the time comes," he said. "It's an asset we can't get back," he said.
While it’s not the wild west of a few years ago, national industrial developers are growing in the Memphis market through build-to-suit deals and acquisitions as they wait until the market is ripe for speculative building.
The latest example is Hillwood Investment Properties, which is growing its local industrial portfolio through acquisition.
The Dallas-based commercial developer has a contract to purchase a 605,427-square-foot warehouse in Olive Branch. It is scheduled to close near the end of the year.
Mazda North America Inc. owns the building at 9105 Hacks Cross Road and has been using it as a parts distribution operation. Built in 2000, the property sits on 66 acres at Stateline Road and Hacks Cross.
Hillwood has developed 4.1 million square feet of industrial space in the Memphis market, all in the DeSoto County submarket. The company has enough land to build another 7 million square feet of industrial space.
Toby Rogers, vice president at Hillwood, had no comment on the pending purchase.
If the sale goes through, the building would represent one of the largest vacancies the market has, according to Brad Kornegay, president of Colliers International Memphis’ asset services division.
“The options for larger spaces are becoming fewer and fewer,” he says. “In the absence of building any speculative buildings, which is not planned for the near future, having a 605,000-square-foot building would be good for the market.”
If a tenant is looking for a minimum of 400,000 square feet of warehouse or distribution space, there are only a handful of options in Shelby County and DeSoto County, Kornegay says.
“We used to have several options for users to look at and analyze,” he says. “We just don’t have that many anymore.”
Southeast Memphis and DeSoto County have seen good industrial leasing activity this year, with Cummins Inc., Nike Inc., CEVA Logistics U.S. Inc. (1.27 million square feet) and Newegg Inc. (414,960 square feet) all absorbing space.
If this continues as many expect, large industrial space could be at more of a premium.
While the Mazda building could provide some space, a developer such as Hillwood would probably have to make some changes, such as adding dock doors or truck parking, to make it more marketable to a wider range of users.
Grubb & Ellis Co. vice president John Pomer and Grubb & Ellis Memphis executive vice president Scott Pahlow are the property’s listing brokers.
Expanding through build-to-suits While Hillwood looks to expand its local footprint through acquisition, Industrial Developments International Inc., is expanding through a build-to-suit project.
In August, the Atlanta-based company started building a 234,660-square-foot warehouse and distribution center for Anda Distribution in Olive Branch. The $23 million project will open at IDI’s Crossroads Distribution center in 2012.
The company will apply for LEED certification of the property at 8644 Polk Lane when completed.
In 2005, IDI purchased 475 acres in Olive Branch from Dunavant Enterprises for $16 million. The property at the intersection of Polk Lane and Stateline Road, dubbed Crossroads Distribution Center, gave the company enough land to build 7 million square feet of industrial space.
IDI built several Class A bulk warehouse properties, including one of the last speculative industrial buildings in the Memphis market. That property, Crossroads Distribution Center A at 9124 Polk Lane, was completed in 2008.
The 452,743-square-foot Class A bulk warehouse building is leased by Smiths Medical ASD Inc., which occupies 240,000 square feet.
Hillwood’s play for the Mazda building is a good example of a company building its inventory, but not developing product.
“With this acquisition, they’re buying core assets in markets they have a presence in,” Tim Moore, vice president of leasing with IDI, says. “It seems like a reasonable acquisition.”
Rate increase needed for spec building While industrial leasing activity has been healthy, it would take an increase in rental rates across the board to justify a reappearance of speculative building, according to Moore.
“I think you’ll see that pressure on rates in the large bulk segment of the inventory before you see it in other parts of the overall inventory,” he says. “I think we’re closer than we were a year ago, but I don’t think we’re quite there yet. The vacancy rates are looking good; we just need pressure on rental rates.”
The average asking lease rate in the overall Memphis market has remained flat. In mid-year 2010, the average asking rental rate was $3.99 per square foot, according to Xceligent Inc. This included triple net leases for bulk warehouse, standard warehouse and flex space. At mid-year 2011, the average asking lease rate had increased to $4.02 per square foot.
This, paired with a slow national economy, has stopped national players like Hillwood, IDI, Panattoni Development Co. and ProLogis from expanding their Memphis-area footprint with speculative building.
However, the opportunities to acquire property and do build-to-suit projects are keeping industrial growth alive locally, both for national companies and more regionally focused firms.
An example is Jackson, Tenn.-based H&M Co. and its development partner, Olive Branch Partners. The two companies developed a 520,000-square-foot distribution center for Asics America Corp. at Chickasaw Trails Industrial Park in Marshall County.
The partner companies are looking for more build-to-suit projects for lease or ownership with room to construct 5 million square feet in that park.
Industrial activity in the greater Memphis area, paired with Chickasaw Trails’ location adjacent to the future I-269, should help fill up that park, according to Roger Cook, senior vice president with H&M.
“I think it’s great to see these building being purchased and tenants being brought in,” he says. “I can’t help but believe Memphis will still attract a lot of large build-to-suit and lease projects.”
NEWVILLE, PA — Hillwood Investment Properties (Hillwood) announced today that it has purchased Key Logistics Park (Building C), a 1,170,000 square foot warehouse/distribution facility in Newville, Pennsylvania. Constructed in 2009, the facility resides on an 80-acre site conveniently located off I-81 at Exit 37, near the junction of a major distribution route serving a number of large population centers in the northeastern United States.
The property resides in the Central Pennsylvania logistics corridor with easy access to area truck terminals, the FedEx and UPS Freight facilities and Norfolk and CSX terminals. The property has one tenant, Office Depot, leasing 600,000 square feet in 2010. The remaining 570,000 square feet is available for lease and is currently the only available Class A vacancy greater than 500,000 square feet in the Central Pennsylvania market.
“Hillwood is pleased to add Key Logistics Park to our investment portfolio in the central Pennsylvania market,” said Gary Frederick, Senior Vice President with Hillwood Investment Properties. “We are focused on locations, like Key Logistics Park, that will provide significant operational advantages to our clients and create growth in the marketplace. We are confident Key Logistics Park will achieve these goals.”
CB Richard Ellis in Harrisburg, PA, led by Michael Hess, Senior Vice President, Patrick M. Lafferty, Senior Vice President and Bart Anderson, Vice President, were brokers on the deal. The same CB Richard Ellis team is currently marketing the 570,000-square-foot vacancy for lease.
Key Logistics Park is located at 950 Centerville Road in Newville, Cumberland County, Pennsylvania.
About Hillwood Hillwood, a Perot company, is ranked as one of the top commercial real estate investors and developers in the country and the top residential developer in Dallas-Fort Worth. The company's developments currently house facilities for 65 companies listed on the Fortune 500, Global 500 or Forbes List of Top Private firms. Hillwood is best known for its Alliance brand that includes the 17,000-acre AllianceTexas, 4,474-acre AllianceFlorida at Cecil Commerce Center, and 2,000-acre AllianceCalifornia. For additional information about the company, please visit www.hillwood.com.
Hillwood Investment Properties, a Texas company owned by businessman and former presidential candidate H. Ross Perot Sr., today announced it purchased the warehouse at Key Logistics Park in Cumberland County.
The Penn Township warehouse is home to a 600,000-square-foot distribution hub for Florida-based retailer Office Depot. The building has more than 500,000 square feet left for lease. Hillwood is searching for a tenant for the vacant side of the building, said Gary Frederick, the company's senior vice president.
"There's good activity in the market, so we're optimistic we'll find another deal to fill it up," he said.
Hillwood has not bought any of the other sites at the logistics park built in 2008. Two more buildings are planned to give the park nearly 3 million square feet of warehousing.
The acquisition is the second in the midstate for Hillwood in less than a year. Last June, the company bought the 600,000-square-foot Key Distribution Center in Carlisle and renamed it Carlisle 44 Trade Center. Wisconsin food company Bay Valley Foods leased the center in January.
Hillwood also owns 1.4 million square feet of warehouse space in Lebanon County leased to food manufacturer General Mills and is seeking more acquisitions in Central Pennsylvania, Frederick said.
Hillwood Investment Properties (Hillwood), a Perot company, has purchased Key Logistics Park (Building C), a 1.17 million square foot warehouse/distribution facility in Newville, PA. The price paid for the asset was not immediately available.
Constructed in 2009, the facility resides on an 80-acre site located off I-81 at Exit 37, near the junction of a major distribution route serving a number of large population centers in the northeastern United States.
The property resides in the Central Pennsylvania logistics corridor with access to area truck terminals, the FedEx and UPS Freight facilities and Norfolk and CSX terminals. The property has one tenant, Office Depot, leasing 600,000 square feet in 2010. The remaining 570,000 square feet is available for lease and is currently the only available Class A vacancy greater than 500,000 square feet in the Central Pennsylvania market.
Hillwood is best known for its Alliance brand that includes the 17,000-acre AllianceTexas, 4,474-acre AllianceFlorida at Cecil Commerce Center, and 2,000-acre AllianceCalifornia.