Multi-tenant commercial center on Hospitality sells for $6.8 million

A multi-tenant commercial center on Hospitality Lane has sold for $6.8 million according to a statement by Progressive Real Estate Partners. The 44,290 square-foot “flex center” is part of the Tri City Commercial Hub/Hospitality Lane District in San Bernardino.

Built in 1980, the 93% occupied multi-tenant flex center consists of two buildings featuring highly adaptable and divisible/combinable suites ranging in size from 950 square feet to 1,930 square feet.  The property is home to a diverse mix of 24 tenants including restaurant, healthcare, education, fitness, finance, office and retail users. Several improvements have been made to the center over the past 5 years including new roofing, multiple new HVAC units, fresh paint as well as the addition of LED lighting and drought tolerant landscaping.

Progressive Real Estate Partners Senior VP Greg Bedell, CCIM and Senior Investment Sales Advisor Lance Mordachini represented the Los Angeles based seller in the transaction.  The buyer, a private Orange County investor, also owns other Inland Empire based commercial properties. Both parties in the transaction wished to remain anonymous.

“Higher construction costs have slowed new multi-tenant commercial development, while demand for existing space—especially 1,000 to 3,000 SF suites—remains strong,” said Bedell in a statement. “With limited new supply, rental rates are rising. This acquisition allows the buyer to capitalize on these market conditions AND also add value thru making property upgrades that enhance the center’s success.”