Status Update: Pot cultivation blooms at Desert Hot Springs complex; Burlington opening in Perris

An industrial condominium in Desert Hot Springs — part of a sprawling complex used for indoor marijuana cultivation — has been sold for $7.76 million, according to NAI Capital, a commercial real estate broker.

The 32,370-square-foot facility at 13310 Little Morongo Road, Building 2 Unit B, is leased by Zenco, a cannabis cultivation company, through 2025. The buyer was Ten Tree Properties, which purchased the property from Snyder Interests. NAI Capital represented both sides in the transaction.

Zenco provides craft cultivation flowers and branded products and is one of Coachella Valley’s fastest-growing companies in this industry, according to NAI Capital’s statement.

The property built in 2018 is part of the Southern California Cultivation Park, a 7.91-acre complex that caters to the marijuana industry. It’s adjacent to another cultivation house owned by Cannadscent, a provider of cannabis flower.

Also nearby, a facility is under construction for Med Men, a publicly-traded cannabis company with national operations.

Burlington Store opens this week in Perris

Burlington Stores, a discount retailer of clothing, home improvement items and other merchandise, will host a grand opening Friday, Sept. 6 in Perris.

A ribbon-cutting ceremony is planned for 8:45 a.m. and the opening weekend will be filled with giveaways, children’s promotions and other activities, according to the retailer.

The store is located at Perris Plaza, 1688 North Perris Blvd.

Apartments sell for $53.5 million

Canyon Crest Views, a 178-unit rental complex in Riverside, has been sold for $53.5 million to an unnamed private investment group, according to Berkadia, a commercial real estate firm.

The complex, made up primarily of two- and three-bedroom townhouse-style units, is at the intersection of Central Avenue and Canyon Crest Drive, across the street from the busy Canyon Crest Towne Centre.

The sale attracted “tremendous response by a very deep field of investors from all over California,” according to a Berkadia spokesman in the statement. The complex is undergoing some renovations, and the buyer is expected to complete them.

The seller was San Francisco-based Klingbeil Capital Management.

San Bernardino complex sells for $37.4 million

The Vue Apartment Homes, a 197-unit apartment community in San Bernardino, has been sold for $37.4 million, according to CBRE, which represented the seller.

The complex, built in 1988, is at 1660 West Kendall Drive and includes five different floor plans, ranging from 800 to 1,030 square feet.

The property was bought by Dalan Management, a New York City-based developer. Irvine-based developer FPA Multifamily was the seller.

Hemet apartments sell for $8 million

Villa Hemet, a 101-unit complex located at 550 North Santa Fe St. that operates mainly as a home for residents 55 and older, has been sold for $8 million, broker Marcus & Millichap said in a statement.

The complex is comprised of 22 single-story buildings. Marcus & Millichap represented both the buyer and the seller, neither of which were identified in the company’s statement.

And a small deal in Upland

Pine Street Apartments, an Upland property with eight units, has been sold to an unnamed buyer for $1,950,000, according to Marcus & Millichap.

The building at 1032 West Pine St. has apartments that run from one to three bedrooms. It was sold by an unnamed individual personal trust.

Beaumont Popeyes’ site sold

A single-tenant restaurant site in Beaumont, home to a Popeyes Lousiana Kitchen drive-through, has been sold to a San Jose-based investor for $2,265,000, according to Progressive Real Estate Partners.

The restaurant, at 501 East Fifth St., sold for $1,006 per square feet, representing the most ever paid for a Popeyes in Southern California, according to Progressive Real Estate Partners.

The seller was a private investor from Riverside. Neither of the parties in the sale was identified.

Crystal Window names new plant GM

Crystal Window and Door Systems has promoted industry veteran Sergio Garcia to general manager of its Riverside facility, which is the hub of the New York City-based company’s West Coast operations.

Garcia has more than 20 years of operational experience in the window and door manufacturing business, according to the company. He joined Crystal in 2015 as operations manager and became assistant general manager in 2017, specializing in equipment acquisition and staff training.

Previously Garcia was operations manager at Superior Windows and Doors in Ontario.

Temecula chamber hires new leader

Emily Falappino has been named president and CEO of the Temecula Valley Chamber of Commerce, the organization said last week.

Falappino, a graduate of the University of Phoenix, also holds an MBA Summa Cum Laude from CSU San Bernardino. She has worked since 2006 with Stryker Transportation and Grapeline, a local transportation and charter service that offers tours of the region’s wine country, and has been its general manager since 2012.

She was unanimously endorsed by the chamber’s board and will succeed Alice Sullivan. The transition to Falappino is expected to take place in October.

Lots of small business, not many jobs

Small businesses in the Inland Empire have been growing at a substantial rate in recent years, but in the age of dominated by large distribution centers and other large employers, the effect on the overall economy has been less significant.

A recent report from UC Riverside found there were almost 72,000 business establishments in San Bernardino and Riverside counties in 2016, the most recent U.S. Census Bureau data available. Of that, about 85% had fewer than 20 employees. There were 11.1% more businesses in the region in 2016 than in 2011.

And, while small businesses accounted for 86.1% of business growth between 2011 and 2016, they accounted for only 17.7% of the region’s employment growth. It would take at least 100 new small businesses to equal the impact, in terms of job growth, of one typical Amazon fulfillment center.

“While small businesses are vital, they’re often perceived as major contributors to overall economic expansion,” said Robert Kleinhenz, executive director of research at UCR’s Center for Economic Forecasting. “In the Inland Empire, they don’t contribute to employment nearly as much as medium- and larger-sized businesses do.”

UCR issued the study with the goal of helping local officials plan future economic development strategies.

Status Update is compiled by Inland Empire business reporter Jack Katzanek and edited by Business Editor Samantha Gowen. Submit items to jkatzanek@scng.com or sgowen@scng.com. High-resolution images also can be submitted. Allow at least one week for publication. Items are edited for length and clarity.

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