News Release
AMSTAR GROUP FORMS JOINT VENTURE WITH KALIBER GROUP TO DEVELOP 54.4 ACRES IN RIVERSIDE
Complex Land Assemblage Complete, $100 Million Alessandro Commerce Centre Development Planned as One of the Largest Spec Office and Industrial Projects in the Inland Empire.
RIVERSIDE, CA (October 20, 2006) – Amstar Group announced a new joint venture today with Orange County-based Kaliber Group, Inc. to develop office and warehouse / distribution industrial space on 54.4 acres in Riverside County, one of the fastest growing commercial and industrial hubs in the United States.
The new joint venture hopes to break ground within 24 months. Upon completion, the development will feature multi-story Class A office space as well as state of the art industrial buildings, with a developed value in excess of $100 million. The project, tentatively named Alessandro Commerce Centre, is located in Riverside, Calif. along Alessandro Boulevard off of I-215. Upon full build-out, the Alessandro Commerce Centre will offer up to 750,000 square feet of office and industrial product, configured to meet market demand.
“Kaliber was able to successfully negotiate with multiple owners to assemble four contiguous parcels of strategically positioned land before it came to market,” said Craig M. Reed, president of Kaliber Group. “We are thrilled to have Amstar recognize the potential of the Alessandro Commerce Centre and the opportunity to acquire a prime site near March Global Cargo Port and directly adjacent to LNR’s Meridian, a 1,200 acre master planned commercial development that is transforming this submarket into a regional destination for top companies seeking space for expansion and efficiency.”
Amstar Group, a leading real estate private equity firm based in Denver, Colo., invests in five major classes of real estate including office, hotel, multifamily, industrial and retail in major metropolitan markets throughout the United States. Frequently partnering with local highly qualified operators and developers, Amstar was attracted to Kaliber’s ability to assemble a large development site off-market within the highly competitive Inland Empire and the firm’s principals’ strong track record of past performance on a number of commercial projects.
“Amstar Group is excited to be developing this very unique project with Kaliber, a new partner for us with a strong track record,” said Gabe L. Finke, chief executive officer and general partner of Amstar Group. “The Alessandro project gives Amstar and Kaliber the opportunity to establish a strategic foothold in one of the fastest growing and most sought-after investment markets in the United States.”
Headquartered in Orange County, Calif., Kaliber Group is a newly formed investment and development company headed by president Craig M. Reed, who has been involved in the acquisition and development of more than 3 million square feet of commercial product while working for Disney Development Company, Lowe Enterprises, Sares-Regis, and most recently, an Orange County based real estate investment fund.
The Alessandro land purchase represents one of the few remaining prime development sites in the Inland Empire East submarket consisting of more than 40 contiguous acres. At the close of 2005, the Inland Empire (a geographic area in Southern California made up of various submarkets in Riverside and San Bernardino Counties) led all U.S. industrial markets in both net absorption and under construction totals, with the second tightest vacancy in the country (1.57%), second only to Los Angeles County. Despite large amounts of new office and industrial supply coming online in 2006, vacancy rates have remained steady in response to absorption fueled by robust growth in Asian imports, strong Riverside county employment and population growth. As of 2nd quarter 2006, the Inland Empire East Industrial and Riverside Office markets posted vacancy rates of 3.7% and 8.8%, respectively.
According to Reed, a meaningful portion of the project is planned for office space. “We were sensitive to the community and made a point to put the highly visible office space on Alessandro Blvd., a major east-west thoroughfare and an exit off I-215,” said Reed. “We believe this development will create jobs in the community and are targeting regional as well as national companies looking to establish a presence or expand in the Inland Empire.”
About Amstar Group, LLC.
Established in 1987, Amstar Group is a leading real estate private equity firm headquartered in Denver. The company invests nationally in value-add acquisition and development opportunities, often with local partners. In its history Amstar has acquired, developed and sold more than $2 billion of real estate. Amstar’s current portfolio includes a mix of office, multifamily and hospitality holdings in addition to a development pipeline of industrial, office, multifamily and retail projects. For more information about Amstar Group visit the company’s website at www.amstargroup.com.