Colliers has completed the sale of Gateway at Menifee Building 3, an industrial asset in Menifee, for $40.5 million. The transaction involves a 229,934-square-foot warehouse located at 33520 Zeiders Rd., one of five buildings within the larger Gateway at Menifee industrial complex. The property was previously identified as part of the Scott Road Commerce Center before the project was rebranded.
The sale transferred Building 3 from Scott Road Property, LLC to Southwest Traders, a logistics and distribution company based in Temecula. According to Colliers, the deal moved on an accelerated timetable, with escrow opening in May 2026 and both parties agreeing to a quick closing process. The transaction underscores active investor and occupier interest in modern industrial facilities capable of supporting logistics and distribution operations.
Colliers represented the buyer in the acquisition. The brokerage team included executive vice president Rick Nunez, SIOR, associate Mateo Mobilia and senior client services specialist Michael Romero. Their assignment focused on advising Southwest Traders through the acquisition and coordinating the steps needed to bring the deal from opening of escrow to closing within a compressed time frame.
Southwest Traders plans to undertake a significant capital investment at the newly acquired facility. Terry Walsh, president of Southwest Traders, described the building as an important element of the company's broader expansion efforts. He noted that the Menifee location is viewed internally as a critical next step in the firm's growth strategy and regional logistics build-out.
In conjunction with the purchase, Southwest Traders expects to allocate approximately $25 million to retrofit a portion of the warehouse. The company intends to convert part of the building into a state-of-the-art refrigerated distribution center, positioning the facility to handle temperature-sensitive products and support the company's logistics network. The retrofit will add specialized infrastructure to the existing industrial shell while leveraging the building's scale and configuration.
With the acquisition of Gateway at Menifee Building 3 and the planned retrofit program, Southwest Traders is expanding its physical footprint and enhancing its distribution capabilities. The combination of a large modern industrial asset and substantial follow-on investment highlights ongoing demand from logistics users for buildings that can be tailored to specialized operational requirements, particularly in the refrigerated and temperature-controlled segment.
