SAN BERNARDINO, CA-Royal Appliance Manufacturing Co. is expanding its operations by more than 65,000 square feet and relocating to an industrial building owned by Hillwood Investment Properties in a five-year lease for a 415,825-square-foot building at 925 E. Ninth St. The deal marks one of the largest new leases in the Inland Empire so far this year, according to brokers from CB Richard Ellis who represented Hillwood.
Royal Appliance plans to relocate to the new building upon completion of tenant improvements at the beginning of May. Hillwood acquired the building last year from Blackrock in a transaction brokered by the same CBRE team that represented Hillwood in the Royal Appliance lease: Frank Geraci, Walt Chenoweth, Juan Gutierrez and Patrick Wood of CBRE’s Ontario office.
Chenoweth says the new lease produces positive cash flow for Hillwood soon after an acquisition in a slow market. Royal Appliance, which now occupies a 349,000-square-foot facility in the West Inland Empire, manufactures brands including Hoover and Dirt Devil vacuum cleaners.
Royal Appliance was represented by Jeff Smith and Jeff Huberman of Lee & Associates. The five-year lease is valued at more than $5 million.
In December, Hillwood Development also acquired a sister building at the same location. CBRE is also the leasing agent for that building, which is a 609,000-square-foot warehouse at 7776 E. Tippecanoe Ave.
Both buildings are located in the San Bernardino Enterprise Zone at Hillwood’s AllianceCalifornia project at the former Norton Air Force Base. According to John Magness, president of Hillwood’s operations in California, the AllianceCalifornia redevelopment project now totals more than 8.6 million square feet.