IE Business Daily Business news for the Inland Empire.
A Long Beach-based firm has leased a 750,000-square-foot warehouse-distribution building that it developed in Fontana.
LG Electronics USA, which manufacturers flat screen television sets, refrigerators, microwave ovens and other household appliances, moved into the building at 5565 Sierra Ave. last week, said Charley O’Desky, project manager for Pacific Industrial.
The transaction was announced Tuesday.
O’Desky described the lease as “long-term,” but said all details of the agreement would remain confidential.
Pacific Industrial bought the 40-acre property from a housing developer three years ago, who was forced to sell the land at Sierra Avenue and the Foothill Freeway because of the recession.
After a two-year entitlement process, Pacific Industrial began construction during the summer of last year. Although technically not finished, the building is far enough along that it can be occupied, O’Desky said.
“It’s in a very good pocket, near Interstate 15 and the [Foothill] Freeway,” said O’Desky, who said the project will cost about $60 million, including the cost of the land. “It’s a perfect location for a warehouse-distribution operation, and this will be a major one. It’s going to operate 24 hours a day seven days a week.”
Between 200 and 300 people are expected to work there, said Chuck Belden, executive director with Cushman & Wakefield Ontario and one of the brokers who represented LG Electronics in the negotiations.
Lee & Associates Ontario represented Pacific Industrial.
LG Electronics is consolidating three Inland warehouse-distribution facilities: two in Rancho Cucamonga and one in unincorporated San Bernardino County near Ontario, Belden said.
Pacific Industrial, which was founded three years ago, is currently developing about 2.5 million square feet of industrial properties, O’Desky said.
One of those projects is a 750,000-square-foot industrial building under construction next to the LG Electronics building. That project is being built without any signed tenants and is expected to be finished by January, O’Desky said.
