Los Angeles, CA (March 20, 2015) – Circle Industrial (CI), announced today a long-term lease agreement at its Rialto Circle Industrial property in Rialto, California. A national distributor of pipe and steel products to the wholesale industry leased the entire 89,600 square foot property for a 10-Year term.
The lease transaction stabilizes the Rialto Circle investment 8 months post acquisition, during which time Circle refurbished the property while collecting month to month income. “We are very pleased to successfully demonstrate our ability to recognize value with what many players would consider a challenged asset”, stated Pat Maloney, Principal of Circle Industrial. “CI understands the demand drivers for industrial real estate in Southern California, so we liked the excess land, yard and functional loading that makes the property attractive to both distributors and manufacturers. Most developers want to figure out how to build new construction, while at Circle we look to understand and capitalize on existing functionality to bring value to our investors.”
Located at 206 S Lilac Ave, The Property contains 14 dock-high positions and has low site coverage for ample trailer or material storage. The site was acquired well below replacement cost, with Circle closing escrow in less than 30 days to accommodate the sellers desire to close prior to their fiscal year-end. Post-closing, Circle embarked on the substantial renovations which drew the customer to the site.
Circle Industrial is a real estate private equity firm focused on the acquisition, development and operation of industrial properties in Southern California as well as other major US markets with high barriers to entry. Circle Industrial is led by former Prologis, Inc. (NYSE: PLD) executives Pat Maloney and Eric Omohundro, who have been working and investing together for years while at Prologis and now at Circle Industrial. www.circle-industrial.com