San Francisco-based Stockbridge paid $142M for a two-property portfolio in the Inland Empire, taking the asset off the hands of Principal Asset Management.

The sale was brokered by a Cushman & Wakefield team led by Executive Vice Chairs Jeff Chiate and Jeffrey Cole. Cushman announced the deal in a press release Wednesday.

The two properties are Class-A buildings at 3351 E. Philadelphia St. and 4450 E. Lowell St. in Ontario. Both are fully leased to distribution and retail tenants.

Both properties have maintained occupancy of 100% for nearly a decade, Chiate said in the release.

The Inland Empire West submarket, which includes Ontario, had a vacancy rate of 5.4% in the first quarter of 2024, according to Cushman.

The $142M sale price roughly translates to $263 per SF, just above the $233 per SF average sale price for the first quarter, according to an NAI Capital report.

"Developable land is diminishing in the IE, constraining supply in the coming years and consequently lowering future vacancy rates," according to a Q1 report from Cushman.

A Cushman & Wakefield team led by Rob Rubano sourced acquisition financing for the sale.