Link Logistics Gets $202M for Inland Empire Portfolio

November 7, 2024

Industrial Inland Empire Investment News More West

The four-building industrial collection was fully leased at closing.

Image of one of the four industrial properties in the Inland Empire market that changed hands for $202.1 million. — Three of the four industrial properties that changed hands were previously owned by Cabot Properties. *Image courtesy of Colliers*

Cabot Properties has paid $202.1 million for the IE 4-Pack portfolio, a four-building industrial collection totaling 669,057 square feet in the Inland Empire. The seller was Link Logistics, according to CommercialEdge. Colliers brokered the deal.

Situated in Ontario, Calif., Fontana, Calif., and San Bernardino, Calif., all assets were fully leased at the time of sale, with a remaining weighted average lease term of 3.6 years.

Cabot Properties had developed and sold three of the properties between 2018 and 2021, the same source shows. The familiarity with the assets and their tenants significantly influenced the purchase decision, said Cabot Director of Investments Chelsea Tamuk Levane in prepared remarks.

The portfolio includes:

1670 Champagne Ave. in Ontario, a 263,670-square-foot property completed in 2000.
1651 S. Carlos Ave. in Ontario, a 147,484-square-foot facility that came online in 1989.
10917 Cherry Ave. in Fontana, built in 2019 and totaling 103,343 square feet.
750 S. Valley View Ave. in San Bernardino. The 154,560-square-foot property came online in 2018.

The Ontario properties are within 7 miles of each other and close to Ontario International Airport, while the Fontana and San Bernardino assets are within 15 miles of each other and allow easy access to interstates 10 and 215.

The Colliers team that marketed the industrial assets for sale and led the acquisition process included Vice Chairmen Michael Kendall, Thomas Taylor and Steve Bellitti, Executive Vice President Joey Jones, Senior Vice President Gian Bruno, Vice President Kenny Patricia and Associate Kylie Jones.

The Inland Empire still sees big deals

U.S. industrial transactions amounted to $43.7 billion during the first three quarters of the year, according to a recent CommercialEdge industrial report, the average sale prices showing a consistent increase over the year. However, investment activity in some key markets, including the Inland Empire, experienced a slowdown.

The region has been among the top four markets for sales volume in the past six years, but in 2024 the Inland Empire slid into the ninth place nationwide, witnessing lesser investment activity and an 8 percent drop in average sale prices, from the $289 per square foot in September 2022 to the $265 per square foot recorded this September.

However, the metro continued to see some large industrial deals, the sale of the IE 4-Pack portfolio being one of the priciest transactions that closed this year so far. In another significant deal, EQT Exeter paid $197 million for Commerce Way Distribution Center, an industrial facility totaling 819,004 square feet in Fontana.