California NASCAR Racetrack Revamp Secures $756M: The repurposing of California’s Auto Club Speedway into the Speedway Commerce Center, led by Hillwood Investment Properties, signifies a pivotal shift in Southern California’s economic landscape. With $756 million in financing secured, this project is set to transform a 600-acre site into a leading logistics hub, capitalizing on the strategic location for economic growth.
Key Takeaways
- Hillwood Investment Properties leads the transformation of Auto Club Speedway into Speedway Commerce Center with $756 million financing.
- The project aims to convert the NASCAR track in California into a logistics hub, repurposing a 600-acre site.
- Groundbreaking on the first two logistics buildings marks the beginning of the site’s conversion, with completion expected in early 2025.
- The Speedway Commerce Center is designed to be a cornerstone of Southern California’s economy, featuring modern logistics facilities.
- This venture reflects a significant shift in Fontana’s landscape, balancing the preservation of racing legacy with economic growth and innovation in logistics.
Hillwood Investment Properties’ Ambitious Plans for NASCAR’s Auto Club Speedway
Hillwood Investment Properties, a prominent Texas-based industrial developer, has launched on an ambitious venture to convert NASCAR’s Auto Club Speedway in Southern California into a state-of-the-art, 6.6 million-square-foot logistics hub, securing a substantial $756 million in financing for the Speedway Commerce Center project. This initiative, undertaken in strategic partnership with a CBRE Investment Management-sponsored fund, marks a pivotal moment in the industrial transformation of the region, setting a new benchmark for logistics innovation.
As NASCAR’s contract for the Busch Light Clash event at the L.A. Coliseum came to an end, fans hoped that the historic track in Fontana would keep the sport rooted in the Los Angeles area. However, despite discussions of transforming the recently dismantled Auto Club Speedway into a short-track venue, recent updates on commercial development suggest that the glory days of racing at the Fontana track may already be behind us.
The decision to repurpose the over 600-acre site, acquired last year for $559 million, shows Hillwood’s vision for leveraging available spaces for commercial development, thereby fostering economic growth. By carefully evaluating 13 NASCAR track sites across the United States, Hillwood has demonstrated a unique approach to identifying potential sites for industrial reinvention, selecting the Auto Club Speedway for its strategic location and the potential to serve as a logistics nucleus in Southern California.
The partnership between Hillwood and CBRE Investment Management is a sign of the power of strategic alliances in catalyzing commercial development on a grand scale. This collaboration not only brings together financial resources and industrial expertise but also aligns with broader economic goals of job creation and infrastructure improvement. The Speedway Commerce Center project, upon completion, is poised to redefine the logistics landscape, introducing advanced facilities that promise to enhance efficiency, reduce operational costs, and contribute significantly to the local economy.
In navigating the complexities of transforming a renowned NASCAR racetrack into a logistics hub, Hillwood Investment Properties has set on a journey of industrial innovation, setting the stage for a new era of economic growth and commercial development in Southern California.
Racing Towards Development: Speedway Commerce Center Takes Shape
Fuelled by the recent infusion of $756 million in financing, the Speedway Commerce Center project is swiftly evolving from concept to construction, with the groundbreaking on its first two logistics buildings signaling a new chapter in Southern California’s industrial landscape. This ambitious initiative, led by Hillwood, promises to catalyze significant economic growth through industrial expansion, infrastructure development, job creation, and supply chain optimization.
The project’s significance is highlighted by several key features:
- Economic Growth: The Speedway Commerce Center is set to become a cornerstone of Southern California’s economy, attracting businesses and investments that will fuel regional development.
- Industrial Expansion: By transforming over 100 acres into a state-of-the-art logistics hub, the project is a confirmation of the area’s growing role in the national and global economy.
- Infrastructure Development: With features like 40-foot clear heights and expansive concrete truck courts, the center is assured to set new standards in logistic infrastructure.
- Job Creation: The construction and operational phases of the Speedway Commerce Center promise to generate a considerable number of jobs, contributing to local employment opportunities.
Scheduled for completion in early 2025, the first two buildings of the center are designed to meet the high demands of modern logistics, featuring larger-scale logistics buildings, cross-dock loading facilities, and excess trailer parking. This development is not just about constructing buildings; it’s about laying down the foundation for a more robust, efficient, and resilient supply chain network, pivotal for the region’s ongoing economic success and industrial prowess.
"A Texas-based industrial developer and investor is revving up its engines to begin the conversion of a NASCAR racetrack in Southern California after landing $756 million in financing." – @CoStarUS https://t.co/K7XIHokg1v
— Adam Stern (@A_S12) March 27, 2024
Market Confidence and Strategic Vision: CBRE Investment Management’s Perspective
Amid the unfolding development of the Speedway Commerce Center, Mary Lang of CBRE Investment Management articulates a strong belief in the strategic vision backing this project, underscoring the market’s readiness for such an advanced logistical endeavor. Her confidence is not unfounded; it is rooted deeply in the evolving landscape of logistics and the pressing demand for modern, technologically equipped logistics properties. Lang’s perspective offers an insightful view into the strategic planning that has positioned the Speedway Commerce Center as a pivotal development in catering to the next generation of logistics requirements.
Furthermore, plans include setting aside more than 100 acres of land for hauler parking. Mary Lang, leading CBRE Investment Management’s Americas logistic strategies, expressed confidence that the investment generated from the Auto Club Speedway’s land would facilitate the development of top-notch infrastructure.
Lang emphasizes that the strategic vision for the Speedway Commerce Center goes beyond mere real estate development. It is a forward-thinking response to the evolving requirements of logistics operations that are increasingly relying on technological advancements to streamline processes and enhance efficiency. The project, as Lang outlines, is meticulously designed to align with these futuristic needs, ensuring that the properties within the center are not just structures, but hubs of innovation and efficiency.
The market confidence that Lang speaks to is not just optimism but a calculated understanding of the supply-demand dynamics within the highly competitive Inland Empire region. This confidence is strengthened by a strategic vision that thoroughly addresses the need for well-located, modern logistics properties capable of accommodating the technological and operational advancements of tomorrow. Lang’s insights show a thoughtful approach to development, one that is assured to set new standards in the logistics real estate sector, reflecting CBRE Investment Management’s adeptness at not just recognizing but actively shaping the future of logistics infrastructure.
“We believe that this financing milestone is further confirmation of the market’s confidence in our strategy of developing Class A assets that will be crucial to meet occupiers’ evolving technology and operation needs. We designed the Speedway Commerce Center to specifically meet the critical need for well-located, modern logistics properties in this high-demand region.” – (Mary Lang)
Impact on the Inland Empire Industrial Market
The Inland Empire’s industrial market, despite facing a recent uptick in vacancy rates, is assured for a significant rebound, catalyzed by strategic developments such as the Speedway Commerce Center. This resurgence is not merely a stroke of fortune but the result of calculated infrastructure development and investment in real estate, signaling a new era of economic growth for the region. The Speedway Commerce Center project, in particular, is symbolic of a broader trend towards reviving industrial regions to meet modern supply chain demands, thereby creating substantial job opportunities.
The positive impact on the Inland Empire industrial market can be distilled into four key points:
- Economic Growth: The development of the Speedway Commerce Center is expected to inject vitality into the local economy, attracting businesses and investors drawn to the region’s enhanced infrastructure and strategic location.
- Real Estate Revitalization: A tightening of the market through 2025, as forecasted, suggests a reversal of the recent trend of rising vacancy rates, thereby stabilizing and potentially increasing real estate values.
- Supply Chain Optimization: The project addresses critical supply chain challenges by providing state-of-the-art facilities that support efficient logistics and distribution operations, essential for contemporary business success.
- Job Creation: The construction and operational phases of the Speedway Commerce Center are anticipated to generate many job opportunities, contributing to lower unemployment rates and higher quality of life in the Inland Empire.
In essence, strategic infrastructure development such as the Speedway Commerce Center is a pillar in the sustainable growth and revival of the Inland Empire’s industrial market, promising a robust future for the region.
NASCAR’s Auto Club Speedway: A New Chapter Unfolds
Last year’s transformative acquisition of Auto Club Speedway by Hillwood Investment Properties and CBRE Investment Management has initiated a pivotal chapter for the renowned racing venue, spotlighting its evolution amidst the expanding Speedway Commerce Center project. This development not only marks a significant shift in the landscape of Fontana but also in the world of auto racing, as the Speedway navigates through a period of uncertainty and anticipation.
The speculation surrounding the track’s future configuration and the potential impact of the Speedway Commerce Center have ignited many fan reactions. While some express optimism about the venue’s adaptability and future in auto racing, others voice concerns over what they perceive as the end of an era for the Auto Club Speedway. This divergence in fan sentiment shows the complex relationship between track evolution, racing legacy, and community expectations.
Despite these uncertainties, the NASCAR partnership emerges as a beacon of hope, suggesting that the essence of racing will endure at Fontana. This alliance signifies a commitment to preserving the track’s legacy while embracing change, indicating that the Speedway’s story is far from over.
As discussions within the NASCAR community unfold, it becomes clear that the development of the Speedway Commerce Center represents not just a challenge, but an opportunity. An opportunity to redefine auto racing in Fontana, to innovate while honoring tradition, and to make certain that the Auto Club Speedway remains a cherished icon in the racing world for years to come.
“damn that was fast, says they could be done converting the racetrack by early next year… hopefully NASCAR races on it soon then” – (A fan on X)
News in Brief
The transformation of NASCAR’s Auto Club Speedway into the Speedway Commerce Center, backed by a significant $756 million investment, represents a pivotal development within the Inland Empire’s industrial sector.
This initiative, led by Hillwood Investment Properties and supported by CBRE Investment Management, not only demonstrates market confidence but also signals a strategic evolution in the use of large-scale sporting venues.
As a result, it establishes a precedent for blending sports heritage with industrial innovation, promoting economic growth and diversification in the region.
Our Reader’s Queries
Q: Is NASCAR going to stop racing in California?
A: NASCAR’s top executives express determination to sustain racing in Southern California beyond the current season. NASCAR President Steve Phelps confirmed plans to construct a short track in Fontana during a news conference in Phoenix in November.
Q: What is happening with California Speedway?
A: The fate of NASCAR’s Fontana track hangs in uncertainty amid ongoing reconfiguration efforts. Track President Dave Allen indicated that the revamped track likely won’t be prepared for the beginning of the 2025 Cup Series season, as reported by the Los Angeles Times.
Q: Will NASCAR race at Fontana in 2024?
A: In 2024, The Clash preseason all-star exhibition will take place at the Coliseum. NASCAR’s intention remains to construct a short track in the Inland Empire for future events.
Also Read: The Greatest NASCAR Racers by State: Unveiling the Racing Legends from Alabama to California
