In partnership with Alex. Brown Realty in December 2015, CIP Real Estate re-acquired Milliken Business Center, a 157,701 square foot multi-tenant industrial park situated in the heart of the Ontario Airport sub-market, for $17.1 million ($109 per square foot). Milliken Business Center is ideally located at the intersection of the 10, 60 and 15 freeways on one of the major north/south arterials through the largest industrial park in the western Inland Empire.
CIP Real Estate had previously owned the project from 2000 to 2004 in a joint venture with Alex. Brown Realty. The project was sold to a private equity group organized by CIP management in 2004 after achieving all IRR and equity multiples originally projected for the asset. In 2008 CIP sold this asset to an institutional owner after once again exceeding all return metric of our equity group. When the institutional owner brought the park back to market in 2015, CIP Real Estate jumped at the opportunity to buy the project and return it to “best in class” condition.
Since acquisition, the new venture has invested more than $1.0 million in exterior cosmetic upgrades, extensive interior suite renovations, and the complete installation of new roofs and HVAC units throughout the project. Due to this capital improvement program, occupancy at Milliken Business Center improved from below 85% to over 97% in the first 18 months of ownership at rental rates and lease terms better than forecast.