Beverly Hills-based StarPoint Properties has unloaded a new 179,000-square-foot industrial development in Southern California’s Inland Empire a few years after buying the land for the project.
StarPoint announced the 6th Street Point warehouse in San Bernardino, Calif., sold for $49.5 million. The firm bought the land for $6.5 million in 2020. The profits from the deal will be rolled into other investments currently underway in Colorado and Arizona.
StarPoint did not reveal the name of the buyer, but The Real Deal reported EQT Exeter, the U.S. real estate arm of Stockholm-based investment firm EQT, scooped up the 9.8-acre site at 24712 Sixth Street, adjacent to the San Bernardino International Airport.
The Inland Empire is one of the most sought-after warehouse/distribution markets in the county, and San Bernardino has a vacancy rate at 2.9 percent. 6th Street Point is also located in a designated Opportunity Zone, which stems from 2017 federal legislation that allows more tax breaks and incentives for investors in the designated areas.
“While most OZ investments are planned for a 10-year hold, our Prime and Prime OZ Program is able to maximize returns on this investment in just three years,” Paul Daneshrad, CEO and Founder of Starpoint Properties, said in a statement. “As a result, by selling now and rolling these funds into multiple other investments, we’ll be able to pursue future projects that will continue to yield the highest returns possible for our investors.”
StarPoint’s Prime and Prime program focuses on targeting multifamily and industrial real estate. The firm launched in 1995 and currently operates a portfolio it values at more than $1 billion.
Gregory Cornfield can be reached at firstname.lastname@example.org.