Distribution, Retail Complexes Planned
A surge of new real estate development continues to wash across the Inland Empire, where plans for a major new shopping center and massive distribution facility have been announced.
Catellus Development Corp. said it will soon begin construction on a 500,000-square-foot distribution center in Ontario for New Balance Athletic Shoes Inc.
The building, which would be one of the largest in Southern California, is scheduled to be completed in 12 months at Crossroads Business Park, which is near the junction of Interstates 10 and 15.
New Balance, which was represented by broker Jon Thys of Seeley Co., agreed to lease the building for 10 years from San Francisco-based Catellus, which was represented by Bill Heim and Michael Chavez of Lee & Associates.
The value of the lease and the cost of construction were not disclosed.
The Ontario facility will double New Balance’s distribution capacity.
Currently, the shoe and apparel maker’s regional distribution operations are handled by a logistics company in the South Bay. New Balance has its headquarters in Boston.
“Since this will serve as the company’s only U.S. distribution center outside the Northeast, room to grow will be an important feature,” Charles A. McPhee, senior vice president of southwest industrial development at Catellus, said in a statement.
Catellus--one of California’s largest landowners--is the developer of the Crossroads Business Park, a 279-acre project where companies such as Longs Drug Stores, Dunlop Tires and Gillette have or are in the process of building distribution and industrial facilities.
A few miles southeast in Chino Hills, Sport Chalet and Sav-On Drugs have signed leases for the first phase of Crossroads Marketplace, a 795,000-square-foot retail and entertainment complex. Construction on the 92-acre retail project began earlier this month. The center will feature so-called big-box retailers, movie theaters, restaurants and a hotel.
The first portion of the Crossroads Marketplace, which is at the intersection of the Chino Valley and Pomona freeways, is expected to be completed in August.
Sport Chalet signed a 15-year lease for 42,000 square feet of space for an estimated $9.3 million, according to mall developer Lennar Partners.
The 20-year Sav-On lease--valued at $7.1 million--is for 15,000 square feet.
