NEWPORT BEACH, Calif., July 24, 2014--(PR Newswire)--
Real Estate Development Associates Breaks Ground on 500,000 Square Feet of Speculative Industrial Development in Southern California
NEWPORT BEACH, Calif., July 24, 2014
NEWPORT BEACH, Calif., July 24, 2014 /PRNewswire/ -- REDA Bascom Ventures, LLC ("REDA"), a joint venture between Newport Beach, California-based Real Estate Development Associates, LLC and Irvine, California-based The Bascom Group, LLC, started construction on two separate speculative industrial development projects totaling 500,000 square feet in Southern California. REDA was formed in 2013 to acquire value-added office and industrial opportunities throughout Southern California.
REDA recently started construction on the Malt Avenue Distribution Center located on Malt Avenue in the City of Commerce, California. The state of the art distribution/warehouse building totals 141,000 square feet with 32-foot clearance, dock high loading and a secured truck court. The project, being constructed by Oltmans Construction, is currently in the grading phase and completion is scheduled for the first quarter of 2015. REDA acquired the site in May 2013 from a private owner. Jack Cline, Jr. and Jeff Bethel of Lee and Associates are marketing the project.
In Fontana, REDA recently completed the recapitalization of the Hemlock Distribution Center which included a $17.9 million construction loan from Bank of the West. The proposed 358,000-square-foot speculative warehouse/distribution center is located on Hemlock Avenue in Fontana, California. Millie and Severson was selected to construct this project, and completion is also scheduled for the first quarter of 2015. REDA acquired the Hemlock Distribution Center in October 2013 from a plastics manufacturer, JM Eagle, in an all-cash transaction. Kevin McKenna and Scott Sanders of Colliers International represented REDA on the acquisition and will also market the project.
The construction of the Hemlock Distribution Center starts on the heels of the recently completed 800,526-square-foot Etiwanda Commerce Center in Ontario, California. In March 2012, Real Estate Development Associates, LLC formed a venture to acquire from Hyundai Motor America their west coast parts distribution center located on the corner of Etiwanda Avenue and Francis Street in Ontario, California. The construction of Etiwanda Commerce Center was recently completed, and the project is being marketed by Chuck Beldon and Phil Lombardo of Cushman and Wakefield'sOntario office.
"We are extremely bullish on the Southern California Industrial Market," said Jason Krotts, principal of REDA. "Year after year, the activity level in the Southern California industrial market remains strong and continues to lead the nation. We have been focusing on targeting strategically located opportunities where we can create value through either repositioning or developing the asset. We currently have a pipeline of development projects in various stages which exceeds 3 million square feet and are looking for more quality opportunities in the Inland Empire, Orange County and Los Angeles industrial markets," adds Krotts. Bill Goltermann, principal of REDA, adds, "Both projects have excellent access to the region's transportation network and are located in submarkets with low vacancy and strong demand, which helped solidify our decision to move forward with speculative construction."
About Real Estate Development Associates, LLC: Based in Newport Beach, Real Estate Development Associates is a diversified investment company which acquires and develops industrial and office properties throughout Southern California. Owned and operated by principals Jason Krotts and Bill Goltermann, Real Estate Development Associates has invested in excess of $100 million in equity in the past 18 months. The partners of Real Estate Development Associates have experience which spans three decades with over 15 million square feet of completed projects.
About The Bascom Group, LLC: Bascom is a private equity firm specializing in value-added multifamily, commercial, and non-performing loans and real estate-related investments and operating companies. Bascom sources value-added and distressed properties, including many through foreclosure, bankruptcy or short sales, and repositions them by adding extensive capital improvements, improving revenue and reducing expenses by realizing operational efficiencies through implementation of institutional-quality property management. Bascom has completed over $8.5 billion in multi-family and commercial value-added transactions since 1996 including more than 240 multifamily properties containing over 64,500 units. Bascom currently ranks among the top 50 multifamily owners in the US. Bascom's subsidiaries and joint ventures include the Southern California Industrial Fund, Rushmore Properties, Real Estate Development Associates, Shubin Nadal Associates, Spirit Investors, Bascom Northwest Ventures, Bascom Arizona Ventures, and the Realm Group. Bascom's subsidiaries also include Premier Business Centers, the largest privately held executive suite company in the US. For additional information, please visit Bascom's website at http://www.bascomgroup.com/.
For more information, please contact Jason Krotts, Email, 949-743-1463