Stockbridge Pays $142M for SoCal Industrial Portfolio
San Francisco–based Stockbridge has purchased a two-property, 540,478-square-foot Class A industrial portfolio in Southern California’s Inland Empire from Principal Asset Management for $142.3 million. Cushman & Wakefield advised on the transaction and sourced the acquisition financing.
The portfolio’s two freestanding buildings are a few miles apart, at 3351 E. Philadelphia St. and 4450 E. Lowell St. in Ontario, Calif. Both are fully leased to single tenants in the distribution and retail industries.
3351 E. Philadelphia is a food-grade warehouse completed in 1998; it totals 203,408 square feet and is on a 9.5-acre site, according to information provided by CommercialEdge. Its features include 50- by 52-foot column spacing, a maximum 30-foot clear height and ESFR sprinklers.
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4450 E. Lowell was completed in 1995 and is 317,070 square feet and on a 14.26-acre lot. It features 50- by 52-foot column spacing, a maximum 30-foot clear height, ESFR sprinklers, and three-phase, 277/480-volt, 2000-amp electrical service, also according to CommercialEdge.
The properties reportedly provide convenient access to Southern California’s freeway network and to Ontario International Airport, the Ports of Los Angeles and Long Beach, and LAX International Airport.
Jeff Chiate, Jeffrey Cole, Rick Ellison and Matt Leupold of Cushman & Wakefield’s National Industrial Advisory Group–West represented the seller in the transaction. The firm’s Phil Lombardo, Chuck Belden and Andrew Starnes also provided leasing advisory.
In addition, a Cushman & Wakefield Equity, Debt & Structured Finance team of Rob Rubano, Brian Share, Joseph Lieske, Max Schafer and Becca Tse collaborated in sourcing acquisition financing for the transaction.
Active submarket
Cushman & Wakefield’s latest industrial market report states that the Inland Empire West submarket had a vacancy rate of 5.4 percent in the first quarter, making it the tightest submarket in the Inland Empire. Additionally, the submarket reached almost 1 million square feet of positive net absorption in the first quarter.
Less than two weeks ago, Dalfen Industrial acquired from Bixby Land Co. a 340,080-square-foot Class A industrial facility in San Bernardino, Calif., for an undisclosed amount. The building had last traded in 2019, the year after it was completed, for $33.3 million.
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