Hillwood Breaks Ground on 1.1M SF Industrial Build

Hillwood Investment Properties, a full service commercial real estate developer, investor and advisor created in 1998 under the Hillwood Development Company as a vehicle to develop and acquire industrial properties outside of AllianceTexas, broke ground this week on the Gateway South Building 3 in San Bernardino, CA. The 1.1-million-square-foot industrial building, scheduled for delivery by the end of the year, is an extension of the 14-million-square-foot AllianceCalifornia industrial park.

"We feel very good about getting a building of this size up. We have done several buildings of this size over the years, and have leased them," John Magness, SVP at Hillwood Investment Properties, told GlobeSt.com. "Usually about mid-way through construction we will find a tenant. This building has all of the amenities that a tenant would want, like extra truck parking, extra car parking, truck circulation around the building and a 36-foot clear, which is the trend in the larger industrial building. We just started grading last week, so we are about nine months away from end of the year delivery of the building, hopefully with a tenant, but if not, we will work on the lease-up even after construction."

Hillwood still has 60 acres left to develop at the park, but it is also busy purchasing adjacent land to continue expanding—as is the case with Gateway South Building 3. Magness thanks the city for their ability to complete these massive industrial developments. "It is hard to get buildings built in California, but this is a very pro-business city," he says. "The project is part of the success story of San Bernardino, and that is because, despite their bankruptcy, the city has continued to process buildings and get things done."

Hillwood secured a construction loan through PCCP for the development process. HFF associate directors Cullen Aderhold and Brian Torp, senior managing director Trey Morsbach and real estate analyst Carson Dennis secured the undisclosed funds on behalf of Hillwood.

For more news and information visit Blumberg Capital Partners.

Hillwood and Clarion JV to Develop Amazon Fulfillment Center

Hillwood and Clarion Partners announced this week that it will partner in a joint venture to develop a 950,000 square foot facility as part of the AllianceCalifornia project that will serve as a fulfillment center for Amazon once completed later this year. The development in San Bernardino, California will be located on Central Avenue, east of Tippecanoe Avenue. Hillwood will serve as the developer for the project, while the JV will serve as the landlord for the facility, leasing space to Golden State FC LLC once the building is complete. Golden State will then operate the fulfillment center for Amazon. Meanwhile, USAA Real Estate Co. will develop a fulfillment center of about 1 million square feet in Patterson, a city along Interstate 5 in the Modesto metro area according to a CoStar report.

"We've been planning to develop this property for some time, and we're thrilled that Amazon will be moving in after the facility is completed," said John Magness, Senior Vice President, Hillwood and leader of Hillwood's Inland Empire office. "We appreciate all the support from the community, and we look forward to Amazon starting operations in San Bernardino."

"We are excited to be a part of this project and we look forward to a long and successful relationship with Amazon and the community," said Stacey Magee, Senior Vice President/Regional Manager for Clarion Partners.

"We appreciate Hillwood and Clarion's ongoing work and thank Governor Brown and state and local officials for their support, which will allow us to create more than 1,000 full time jobs with benefits in San Bernardino when the facility begins shipping to customers," said Dave Clark, Amazon vice president, global customer fulfillment.

For more news and information visit Blumberg Capital Partners.