Challenge
The 2.11-acre site in Riverside, surrounded by industrial buildings, presented a significant hurdle. Despite six months of marketing, the property had limited appeal as vacant land, given that it required development rather than serving as a yard. The market for industrial land sales was slow, and without improvements, the site was unlikely to sell in the near term.
Approach
To maximize value for the longtime client, Kidder Mathews broker Gerry Harvey recommended a joint venture (JV) with a reliable developer to construct a 44,000-square-foot industrial facility. To enhance exposure and service, a local industrial broker was brought onto the team. Within 30 days, the team secured a small but experienced developer who saw potential in the site and agreed to a JV.
Working closely with architects and engineers, Kidder Mathews influenced the building design to ensure flexibility for both warehouse and manufacturing use. The entitlement process took place from mid-2022 to March 2023, with construction breaking ground shortly thereafter.
As the project advanced, the partners opted to target the sales market, even though comparable sales were scarce and the Inland Empire East saw limited transaction activity in this size range. A key challenge arose when the developer preferred to delay advertising a sale price until construction was complete, while the brokerage team pushed for early marketing to mitigate the risk of prolonged carrying costs—particularly with an 11% construction loan set to mature in November 2024.
Results
The fully designed and well-positioned facility attracted strong buyer interest, with a tight-knit team of three brokers—representing two firms—ultimately securing Hyundai Rotem Smart Electric America LLC as the buyer. Although Hyundai initially preferred a more western location, the city’s cooperative approach and the project’s high-quality design convinced the company to commit to Riverside.
The transaction closed on January 13, 2025, at $15,500,000 ($345 PSF), marking the highest price per square foot for an industrial sale in IEE in 2024. The collaboration between Kidder Mathews, the local brokerage partner, and the City of Riverside played a pivotal role in the successful outcome.
Broker/s and Client Represented
Gerry Harvey, Kidder Mathews, represented the owner.