Stockbridge JV Sells 1 MSF Outdoor Storage Portfolio

A joint venture between Stockbridge Capital Group and Dedeaux Properties has sold a 1 million-square-foot portfolio of Class A industrial outdoor storage properties located around Southern California’s cities of San Bernardino and Rialto, in the Inland Empire.

Based in San Francisco and Los Angeles, the partners sold the 23-acre, three-building portfolio for an undisclosed amount to a buyer procured by JLL Capital Markets.

The firm’s Senior Managing Director Mark Detmer, Senior Director Evan Moran and Director Chad Solomon lined up the buyer, while Executive Managing Directors Patrick Wood and Louis Tomaselli advised the owners around the market.

Stockbridge’s sale of the portfolio is its second industrial divestment in under a week. In late January, the firm sold Project RedHawk, a 1.7 million-square-foot, 49-building portfolio with properties in Arizona, Colorado, California and Florida.

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Additionally, Managing Director Brian Halpern and Vice President Jason Rosin procured financing for the buyer.

The three properties that traded are located at 446. S Yucca Ave. in Rialto, as well as at 1066 N. Tippecanoe Ave. and 1938 W. Fifth St. in San Bernardino, and were constructed between 1990 and 2019, CommercialEdge data shows.

The 446. S Yucca Ave. asset is an 11,057-square-foot property, neighbored by several manufacturing companies and storage facilities, as well as a distribution center operated by Staples. The other two plots are located in Opportunity Zones, according to the same source.

The three properties, all located within 7 miles of each other, feed into onramps to the Interstate 215, giving them quick driving access to much of the Inland Empire, as well as Los Angeles, located 50 miles to the west.

Events in the Inland Empire

The Inland Empire continues to lead the nation’s transaction volume, with the closing of more than $3.3 billion in sales in 2023. In August, Westcore Properties expanded its presence in the area with the acquisition of 16 buildings totaling 3.5 million square feet. One month prior, MDH Partners purchased the Harvill Logistics Center, a 333,570-square-foot facility for $112.3 million.