Baltimore, MD – Alex. Brown Realty (ABR) and CIP Real Estate (CIP) announce the acquisition of Milliken Business Center, a flex industrial portfolio in Ontario, California. ABR Chesapeake Fund V, a value-add real estate fund sponsored by ABR, invested $6.1 million in the newly formed joint venture. Financing was provided by Wells Fargo Bank, NA.
The portfolio is comprised of 12 buildings totaling 157,711 sf situated on an 11-acre campus in Ontario, California, in southwest San Bernadino County California, 35 miles east of downtown Los Angeles. Milliken Business Center is currently 93% occupied by 72 tenants with an average tenant size of 1,800 sf. The portfolio was built from 1986-1987 and provides flexible divisibility with tenant suite sizes ranging from 525 sf to 7,675 sf.
“The business plan contemplates significant capital improvements to address deferred maintenance,” commented Tom Burton, ABR’s chief investment officer. “These improvements, coupled with CIP’s extensive experience, should increase operating income and generate strong returns for our investors.” CIP will oversee implementation of the capital improvements and serve as property manager for the portfolio.
“Based on our prior successes with CIP and this asset type, we anticipate Milliken will achieve positive results for the Fund,” stated John Prugh, president and CEO of ABR. The acquisition of Milliken Business Center represents the 18th joint venture between ABR and CIP since 1998.
Alex. Brown Realty (ABR) is a privately owned real estate investment manager organized in 1972 and headquartered in Baltimore, Maryland. ABR co-invests with joint venture partners in a broad spectrum of property types located throughout the United States. www.abrealty.com
CIP Real Estate is a full-service real estate investment and management company focused on acquiring, developing, repositioning and managing office, business and industrial parks. Founded in 1995, CIP owns and manages more than 5 million square feet of real estate throughout California, Nevada and North Carolina. www.ciprealestate.com