Cajalco Commerce Center settles environmental suit

What's happening

Hillwood Investment Properties settled with environmental groups led by the Sierra Club's San Gorgonio Chapter over the Cajalco Commerce Center, a 1 million square foot warehouse project at Cajalco Road and Seaton Avenue in Mead Valley. Riverside County approved the project in October 2025, and the groups sued that December challenging its environmental review.

Under the August 2026 settlement, Hillwood agreed to use cleaner trucks and equipment, meet minimum staffing levels and not operate the site as a largely automated dark warehouse. The county said it was not a party and described the terms as private commitments between the developer and petitioners. The approval included about $38 million in flood control, drainage and road improvements and a 13-acre public park.

• Size: 1M SF plus a 13-acre park
• Developer: Hillwood Investment Properties
• Location: Cajalco Road and Seaton Avenue, Mead Valley, Riverside County
• Status/Timing: Approved October 2025; lawsuit settled August 2026
• Cost: About $38 million in infrastructure improvements

What it means for owners, tenants and investors

The settlement clears a legal obstacle for a large Inland Empire warehouse. Its terms on clean equipment, staffing and automation may become reference points in other warehouse disputes, which could affect operating costs for future tenants.

Settlement terms, not just entitlements, now shape what big Inland Empire warehouses can be.

What to watch

Groundbreaking timing, tenant announcements, and whether similar staffing and anti-automation terms show up in other settlements.

Imagery: Google Earth.