Fontana’s nearly 30-year-old Auto Club Speedway will be replaced by a multimillion-dollar logistics center after Ross Perot Jr.’s Hillwood Development. bought the property.
At 6.6 million square feet, the logistics facility will be called the Speedway Commerce Center, according to CBRE, which is brokering the purchase.
Dallas-based Hillwood Development Co. and CBRE Investment Management purchased 433 acres of the track for about $559 million, according to Corion Properties.
Auto Club Speedway received rights from San Bernardino County in 2021 to reduce the size of the existing two-mile track to develop a smaller half-mile “Next Generation” short track and make room for the logistics center.
Auto Club Speedway will retain ownership of 90 acres for the short track and parking rights for 106 acres surrounding the track.
NASCAR has closed the track built by Roger Penske with plans to build a new track in its place, the Associated Press reported.
Auto Club Speedway President Lane Allen said the new track won’t be ready for racing until 2024, according to NASCAR.
Development of the Fontana track began in 1995 at the former Kaiser steel plant. The track was completed a year later. NASCAR began racing there in 1997.
Auto Club Speedway hosted its final race on February 26, the sold-out Pala 400 NASCAR CUP Series race.
Located near the intersection of Interstates 15 and 10, the property is located in the heart of the Inland Empire industrial market, which includes 632 million square feet of total inventory at IE West, Corion officials said.
The San Bernardino BNSF property and rail station are targeting Fortune 100-caliber businesses and e-commerce tenants.
The Ireland area is one of the nation’s strongest logistics markets for investors, with a vacancy rate of 1.2% and rental growth of 35.4% in 2022, according to CBRE Investment Management, which added that the submarket of Fontana had a vacancy rate of 0.3% and rent growth of 36.9% last year.
“Speedway Commerce Center presents a rare opportunity for us to invest in what we believe is an irreplaceable property of scale in one of the largest retail markets in the world,” Mary Lang, portfolio manager at CBRE Investment Management, said in a statement. “We will be able to provide a brand new product in the most underserved segment within this fast growing market to fill.”
Forbes on Ross Perot Jr
Ross Perot Jr. founded real estate developer Hillwood, whose diversified portfolio is estimated at more than 70 million square feet, according to Forbes.
His father, the late billionaire presidential candidate Ross Perot Sr., allowed his son to borrow against his fortune to start his real estate empire.
Perot Jr.’s Hillwood. developed and acquired nearly 250 million square feet of industrial space and 90 residential communities.
Hillwood also built AllianceTexas, an inland port on 27,000 acres of grassland outside Fort Worth, home to 61,000 employees and 525 companies.
Hillwood developed Frisco Station, a $1.8 billion, 242-acre mixed-use development in Frisco, Texas, set to open in 2021.
Daily Press reporter Rene Ray De La Cruz can be reached at 760-951-6227 or [email protected] Follow him on Twitter @DP_ReneDeLaCruz.
This article originally appeared in the Victorville Daily Press: Fontana Speedway sold for $559 million to Ross Perot Jr., to be logistics center