The sale of a 540,478-square-foot industrial portfolio in Ontario, California, represented a significant transaction in the Inland Empire West area, one that underscores key themes of impact, growth and diversification, innovation and challenges overcome.
The transaction set a new benchmark for the market by achieving a total sale price of $142.25 million, which reflects the strength of the area's industrial sector. The pricing signals continued investor confidence in high-quality industrial assets, particularly in a market that remains one of the most in-demand in the country.
Given that both properties have maintained 100% occupancy for nearly a decade, the sale further validates the desirability of institutional-grade industrial facilities in premier locations. The buyer, Stockbridge, acquired the portfolio when industrial rents in the region are below market value, presenting a strong mark-to-market opportunity. This demonstrates how industrial property valuations in the area are poised for continued appreciation, which could set new pricing expectations for future transactions in the submarket.
In recognition, the deal earned a 2025 CoStar Impact Award for sale/acquisition of the year in the Inland Empire, as judged by a panel of real estate professionals.
About the deal: The acquisition of the 4450 E. Lowell St. building, home to Converse, and the 3351 E. Philadelphia St. building, leased to Banyan Imports, represents Stockbridge’s continued expansion in the highly competitive Inland Empire market. Stockbridge, a San Francisco-based real estate investment firm, has a strong track record of investing in institutional-quality properties, and this purchase solidifies its presence in one of the country’s top-performing industrial hubs.
The Inland Empire’s access to key logistics corridors and consumer markets makes it an attractive destination for long-term investors seeking stable cash flow and future rent appreciation. Furthermore, this sale marks another transaction involving Principal Asset Management, a global financial and investment management firm that continues to recycle capital through strategic dispositions.
Cushman & Wakefield’s National Industrial Advisory Group-West deployed a competitive bidding process that attracted strong investor interest. Additionally, the firm’s equity, debt and structured finance team played a crucial role in securing acquisition financing in a fluctuating interest rate environment.
What the judges said: "The deal seemed very complex and demonstrated the continued strength of industrial properties in the Inland Empire despite the current financial climate, which was seemingly completed through a series of innovative marketing, financing, and due diligence strategies," said Jacinto Munoz with Cogito Realty Partners. Lynn Yangchana of MGR Real Estate said the deal "set a new market benchmark, navigating shifting investor sentiment and an unpredictable debt market, proving the Inland Empire’s continued status as a prime logistics hub with sustained, strong demand."
They made it happen: Jeff Chiate and Jeffrey Cole, executive vice chairmen, Rick Ellison, vice chairman, and Matthew Leupold, director, at Cushman & Wakefield.