Stockbridge pays $142 million for SoCal industrial portfolio

San Francisco-based Stockbridge has acquired 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 secured the acquisition financing.

The portfolio’s two stand-alone buildings are within a few miles of each other at 3351 E. Philadelphia St. and 4450 E. Lowell St. in Ontario, California. Both are fully let to individual tenants in the distribution and retail industry.

3351 E. Philadelphia is a food warehouse completed in 1998; totals 203,408 square feet and sits on a 9.5-acre lot, according to information provided by CommercialEdge. Its features include column spacing of 50 by 52 feet, a maximum clear height of 30 feet and ESFR sprinklers.

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4450 E. Lowell was completed in 1995 and is 317,070 square feet and sits on 14.26 acres. It features 50-by-52-foot column spacing, a maximum 30-foot clear height, ESFR sprinklers and three-phase, 277/480-volt, 2,000-amp electrical service, also according to CommercialEdge.

The properties reportedly offer convenient access to Southern California’s freeway network and 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 advice.

Additionally, a Cushman & Wakefield Equity, Debt & Structured Finance team consisting 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. In addition, the submarket achieved almost 1 million square meters 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 last traded in 2019, a year after it was completed, for $33.3 million.