Bridge Logistics Buys Another Inland Empire Warehouse

Bridge Logistics Properties is continuing its Southern California shopping spree with one of the biggest single-asset industrial deals in the region this year. 

Its Bridge Investment Group industrial entity bought a 1.1 million-square-foot warehouse at 10681 Production Avenue in Fontana for $174 million, Commercial Observer reported. The price works out to $158 per square foot.

The seller’s identity was hidden behind an LLC.

It was one of the most-expensive transactions for an Inland Empire facility so far this year. The record is held by Burlington Distribution’s purchase of a 900,000-square-foot Riverside distribution center from BlackRock in April for $257 million, or $286 per square foot. 

Cubework, a flex industrial space provider, occupies the Bridge Logistics building, though the property is expected to become vacant in the first quarter of next year. Bridge plans to revamp the office space and dock loading wells. 

“Assets of this scale, quality and location are scarce,” Bridge Logistics managing director Paul Jones said. “The recovery in tenant demand for large, high-quality assets is outpacing available supply.” 

Bridge Logistics is looking to grow its holdings in Greater Los Angeles’ industrial hotspots, and the latest acquisition adds to its collection in Fontana. In July, it bought three industrial buildings in the San Bernardino County enclave for $83.5 million; the deal for the 332,800-square-foot industrial portfolio included a 100,000-square-foot building at 14074 Rancho Court, a 57,650-square-foot building at 14019 Rose Avenue and a 175,100-square-foot building at 14928 Washington Drive. 

Last month, Bridge paid $109 million for two adjacent warehouse properties in City of Industry. One building, at 18501 San Jose Avenue, spans 199,200 square feet and sold for $49 million, or $246 per square foot, and the other, at 18385 San Jose Avenue, spans 250,000 square feet and sold for $60 million, or $240 per square foot. 

This week, Morgan Stanley Real Estate sought to get a piece of the Fontana pie. The banking giant’s real estate investment arm purchased a 26-acre industrial outdoor storage parcel at 10650 Hemlock Avenue for $92 million, or $3.5 million per acre.

— Chris Malone Méndez

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