Bridge Logistics buys Fontana DC

Industrial real estate in the Inland Empire is not back to boom times. But it is back to being interesting. That is why Bridge Logistics Properties just bought a fully leased distribution building in Fontana — not because rents are exploding right now, but because the asset checks a very specific set of boxes. It has income today, limited lease rollover risk for a few years, and a believable path to higher rent later. In this market, that is the whole game. (connectcre.com) ### What exactly did Bridge buy? Bridge Logistics Properties, part of Bridge Investment Group, acquired a 133,115-square-foot Class A warehouse at 10740 Banana Ave. in Fontana, inside the Inland Empire West submarket. The deal was sourced off-market. The building was completed in 2020 and sits in Southwest Industrial Park, which matters because this is one of the tighter and more infrastructure-rich pockets of the region. (connectc([connectcre.com)this building? The short answer is quality plus timing. The facility is modern enough to avoid the usual functional headaches — 32-foot clear height, 18 dock-high doors, ESFR sprinklers, a 135-foot secured truck court, about 6,000 square feet of office, and full drive-around circulation. Those are not flashy details, but they are the details tenants actually pay for when they need efficient distribution space near Interstates 10 and 15. (crittendenreport.com) ### Why does the rent setup matter so much? Because the building is fully leased through 2028, Bridge gets cash flow right away. But the more important detail is that the current rents are below market. Basically, Bridge is not buying a vacancy story or a lease-up story. It is buying a mark-to-market story — hold the income now, then push rents closer to market later and lift net operating income without having to build anything. (connectcre.com) ### So why buy in Inland Empire West now? This submarket still has the fundamentals investors want — dense consumer access, freeway connectivity, and real barriers to new supply. The buyer’s own pitch was that the asset was bought below current replacement cost, which is a fancy way of saying it would be expensive and difficult to recreate today. That matters more when new construction has slowed and entitlement has gotten harder. (connectcre.com) ### But isn’t the Inland Empire softer than it was? Yes — and that is the point. Vacancy is much higher than the ultra-tight pandemic years. Cushman & Wakefield put overall Inland Empire industrial vacancy at 8.5% in Q1 2026, well above the long-run average, while Kidder Mathews said vacancy hit 7.7% and tenants still hold negotiating leverage. So buyers are not underwriting a quick snapback. They are picking assets where basis, building quality, and lease structure give them room to wait. (cushmanwakefield.com) ### Why mention the size range? Because smaller modern buildings in Inland Empire West are not the same as giant box logistics product farther east. Kidder Mathews flagged that vacancy rates are expected to decline for properties under 100,000 square feet and that few projects in this size band are currently seeking city approval. Bridge said there are virtually no new buildings under construction in this size range in Inland Empire West. That scarcity helps protect pricing power once leasing conditions improve. (connectcre.com) ### Who worked on the deal? Eastdil Secured’s Marc Alfert and Clay Skistimas, along with Steve Sprenger of Newmark, facilitated the acquisition. That fits the pattern here — a targeted, brokered, off-market trade rather than a broad auction chasing momentum. (connectcre.com) ### Bottom line? This was a basis-and-durability bet. Bri(connectcre.com)pire market, that is what conviction looks like — not betting on a surge, but buying time and quality at the same moment. (crittendenreport.com)