CIP Real Estate announced it acquired four industrial parks in December 2024 and sold six office buildings and a flex project, leading to $279 million in total transactions at year-end. These acquisitions totaled approximately $240 million across three states:
1.) Broadway 101 Commerce Park in Mesa, Arizona, was purchased for $168.5 million, marking the Phoenix area’s most significant industrial sale of 2024. The 11-building park consists of 809,231 square feet and is one of the Phoenix market’s premier small and mid-bay industrial projects.
2.) Lavista Business Park in Atlanta was purchased for $37 million. The four-building, 217,596-square-foot industrial asset is a rare mid-bay project due to its strategic location inside the 285 beltway in the city.
3.) El Fuerte Business Park and Carlsbad Oaks Commerce Center, both in Carlsbad, Calif., were acquired for $34.25 million. The two small-bay industrial parks include a combined 126,964 square feet in seven buildings, representing best-in-class projects in North San Diego County due to their combination of quality amenities and low office/high warehouse finish.
All four industrial projects were strategic acquisitions for CIP Real Estate, including the company’s entry into the greater Phoenix market along with essential expansions of its California and Georgia portfolios. The company will expend an additional $3.33 million in capital improvements across the properties in 2025 and 2026, enhancing cosmetic appearances, pursuing re-branding opportunities, and modernizing interior specifications.
Along with these acquisitions, CIP Real Estate’s development pipeline of recently completed and in-process assets totals more than 1.1 million square feet of industrial mid-bay and larger unit product located in North and South Carolina and Jacksonville, Florida.
As part of its continued focus and investment in industrial products, CIP Real Estate disposed of six non-core assets during the fourth quarter of 2024:
1.) Summit Business Center, a flex/office project of 138,697 square feet located in the Hunter Park sub-market of Riverside, Calif., for approximately $19 million.
2.) Five office buildings from the company’s extensive Dallas property portfolio totaling 293,336 square feet for about $20 million in aggregation.
KEY QUOTES:
“It’s a competitive market to acquire these types of multi-tenant industrial parks in prime markets, so we are very excited to add these projects to our portfolio. We are currently developing — and under contract to acquire — newly-constructed industrial product in Jacksonville and in the Carolinas, bringing the company’s total portfolio size to over 8.5 million square feet with a value of approximately $1.7 billion across ten key sub-markets.”
- Eric Smyth, CEO of CIP Real Estate
“Our team has been very active in developing strategic in-fill industrial projects to add new assets to our balance sheet that would be difficult to acquire otherwise. We are looking to pursue more of these types of development opportunities in each of our key markets in 2025.”
- Eric Smyth, CEO of CIP Real Estate
“The sale of these properties, which were originally part of larger portfolio acquisitions, was a long-term goal of the company’s business plan to focus on minimal-finish industrial product,” said Scott Flemer, COO of CIP Real Estate.
