January 5, 2023 9:00 AM
Newmark[1] announces it has arranged the sale and financing of Ontario Airport Tower, a six-story, Class A, LEED-Silver Certified office building in the Inland Empire West market. The asset sold for $39 million.Newmark Co-Head, U.S. Capital Markets Kevin Shannon, Executive Managing Directors Ken White, Brunson Howard and Paul Jones and Senior Managing Director Michael Moore represented the private seller. The buyer was MGR Real Estate. Newmark Managing Director Brian Bowis secured financing for the buyer.
“The Inland Empire office market has clearly outperformed both the Orange County and Los Angeles office markets since the onset of the pandemic, with a current healthy vacancy rate of approximately 10% and extraordinary year-over-year job growth of 5.7%,” said Shannon. “Ontario Towers is arguably one of the best office buildings in the submarket and has consistently outperformed the rest of the submarket.”
The 147,732-square-foot property is located at 2855 East Guasti Road and was 89% leased at the time of sale to high-quality, stable tenants. Built in 2008, the property offers one of the highest overall parking ratios of any Class A office building in the area and features a thoughtfully designed lobby with travertine flooring, stainless steel and glass and wood accents.
Ontario Airport Tower’s central location offers high corporate identity frontage on the I-10 freeway and immediate access via the Archibald Avenue on/off ramps. The Inland Empire has a strategic location with the region’s largest industrial base which, during the last growth period, helped support a rapid expansion of the local office market sector. The property is also proximate to the Ontario Mills Mall and surrounding restaurants, banks and retail storefronts.
Office rent growth in Ontario has leveled out after six consecutive quarters of gains, with average asking rent up 3.9% over the past year. Vacancy fell 20 basis points from last quarter to 10.5%, the lowest level in two years. Net absorption remained in positive territory with 77,756 square feet of gains, according to Newmark Research.
About Newmark
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries (“Newmark”), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark’s comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform’s global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. Newmark generated revenues of approximately $3.1 billion for the twelve months ending September 30, 2022. Newmark’s company-owned offices, together with its business partners, operate from approximately 180 offices with nearly 6,700 professionals around the world. To learn more, visit nmrk.com or follow @newmark.
Discussion of Forward-Looking Statements about Newmark
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[1] Dba Newmark Knight Frank in California