Stockbridge Buys $142M SoCal Industrial Portfolio from Principal Asset Management

San Francisco-based Stockbridge has made a significant investment in Southern California’s Inland Empire by acquiring a two-property, 540,478-square-foot Class A industrial portfolio from Principal Asset Management. The transaction, valued at $142.3 million, was facilitated by Cushman & Wakefield, who also sourced the acquisition financing.

Property Specifications

The portfolio comprises two freestanding buildings located at 3351 E. Philadelphia St. and 4450 E. Lowell St. in Ontario, California. Both properties are fully leased to single tenants in the distribution and retail sectors.

3351 E. Philadelphia St.

This food-grade warehouse, completed in 1998, spans 203,408 square feet and sits on a 9.5-acre site. It features 50- by 52-foot column spacing, a 30-foot clear height, and ESFR sprinklers.

4450 E. Lowell St.

Completed in 1995, this property covers 317,070 square feet on a 14.26-acre lot. It includes similar structural features as the Philadelphia property but also boasts three-phase, 277/480-volt, 2000-amp electrical service. Both properties offer easy access to Southern California’s freeway network and major transportation hubs like Ontario International Airport, the Ports of Los Angeles and Long Beach, and LAX International Airport.

Representation and Advisory

The seller was represented by Cushman & Wakefield’s National Industrial Advisory Group–West, including Jeff Chiate, Jeffrey Cole, Rick Ellison, and Matt Leupold. Additional leasing advisory was provided by Phil Lombardo, Chuck Belden, and Andrew Starnes. The Equity, Debt & Structured Finance team, led by Rob Rubano, Brian Share, Joseph Lieske, Max Schafer, and Becca Tse, collaborated on sourcing acquisition financing for the deal.

Market Context

The Inland Empire West submarket is notably active, with Cushman & Wakefield reporting a 5.4 percent vacancy rate in the first quarter, marking it as the tightest submarket in the region. This area saw nearly 1 million square feet of positive net absorption during the same period.

Recent Comparisons

The recent acquisition activity in the region includes Dalfen Industrial’s purchase of a 340,080-square-foot Class A industrial facility in San Bernardino from Bixby Land Co., highlighting the ongoing demand for industrial spaces in Southern California.