Bridge Logistics Properties acquired a 133,115-s.f. Class A distribution center at 10740 Banana Avenue in Fontana, Calif., within the Inland Empire. Valued at $25.5M, the property is fully leased through 2028 with in-place rents below market, providing near-term cash flow and potential NOI growth.
Property: Class A distribution facility, Fontana, Calif.
Price: Valued at $25.5M
Buyer: Bridge Logistics Properties (BLP)
Completed in 2020, the facility features institutional-grade specifications, including 32-foot clear height, 18 dock-high doors, secured 135-foot concrete truck court, approximately 6,000 s.f. of office space, an ESFR sprinkler system and full drive-around capability.
The property is located at the intersection of Interstates 10 and 15, providing access to more than 14 million consumers within a 50-mile radius.
BLP sourced the acquisition off-market at a basis below current replacement cost, according to the buyer.
“This was an attractive opportunity to acquire a modern, well-located asset with in-place cash flow,” said Grant Moore, VP of west region investments at BLP. “With virtually no new buildings under construction in this size range within the Inland Empire West, and a chance to grow NOI in the near term, we feel we’re well-positioned to capitalize on the market’s improving fundamentals.”
Across the Inland Empire, industrial development activity has slowed amid increased vacancy and softer tenant demand over the past two years, according to BLP. More recently, tenant demand for best-in-class, well-located facilities has begun to reemerge, particularly for modern Class A assets with functional layouts and freeway access.
“Through the market’s turbulence we have focused on adding high-quality assets that provide stable near-term income. Our team continues to find attractive risk return spreads in Southern California, which we believe will result in attractive returns for our investors as market fundamentals continue to improve,” said Paul Jones, managing director at BLP.
