JLL Arranges $197M Sale of Commerce Way Distribution Center in Fontana, California

by Kristin Harlow

FONTANA, CALIF. — JLL Capital Markets has arranged the $197 million sale of Commerce Way Distribution Center in Fontana, which is located about 50 miles east of Los Angeles in the Inland Empire. EQT Exeter was the buyer.

Built in 2000, Commerce Way Distribution Center totals 819,004 square feet. Located on Santa Ana Avenue, the property features a cross-dock configuration and a clear height of 30 feet.

JLL says the facility benefits from its location in the Inland Empire, the largest industrial market nationwide with immediate access to critical supply chain infrastructure and Southern California’s population of more than 25 million people.

As of the fourth quarter of 2023, the vacancy rate for the Inland Empire industrial market was 5.9 percent, a 90-basis-point increase quarter-over-quarter due to a high volume of new industrial space delivered by developers, according to JLL. The market experienced positive net absorption despite the 10.5 million square feet of new space delivered in the quarter.

Patrick Nally, Mark Detmer, Evan Moran and Makenna Peter of JLL represented the seller, Manulife Investment Management on behalf of clients, and procured the buyer.

JLL’s debt advisory team on the deal included Kevin Mackenzie, Brian Torp and Samuel Godfrey. Mike McCrary and Ruben Goodsell of JLL led the Inland Empire markets team.

Manulife Investment Management’s real estate platform spans more than 74.7 million square feet of office, industrial, retail and multifamily assets across the U.S., Canada and Asia.

EQT Exeter is a global real estate investment manager with more than $29 billion of equity under management. With a portfolio of more than 2,000 properties and 375 million square feet, the firm acquires, develops, leases and manages industrial, office, life sciences and residential properties in the Americas, Europe and Asia.

— Kristin Harlow

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