Stockbridge Shops 1.9M SF Industrial Portfolio in Five Listings

Stockbridge Capital has put up for sale a portfolio of five industrial campuses encompassing 1.9M SF, in separate listings.

Cushman & Wakefield has been taped to market the industrial campuses, located in the Denver, South Florida, Phoenix, Seattle and San Jose markets, according to a report in Green Street.

The largest offering is an 856K SF industrial campus, known as the Montebello Industrial Portfolio, encompassing 17 buildings in Denver’s Northeast/Airport submarket. The Montebello package is 96% occupied, with 25% of rents below market-rate.

The four other listings include Powerline Business Park, a 444K SF warehouse in Deerfield Beach, FL; Gateway University Park 1&2, encompassing 268K SF, in Tempe, AZ; Springbrook Business Park 1&2 in Kent, WA; and a 119K SF warehouse at Junction Business Park in San Jose.

According to the report, the San Francisco-based firm is pitching the properties in separate listings because in the current lending environment smaller deals can achieve better pricing because they’re easier to finance and therefore attract a wider pool of bidders.

C&W is touting the high occupancy rates of the five properties, their short lease terms and below-market rents that could allow a buyer to boost income. The blended estimated value of the portfolio works out to $187 per SF, which would value it at a total of $350M.

Last year, Stockbridge acquired a portfolio of six grocery-anchored retail properties encompassing 766K SF from Branch Properties, which maintained a minority ownership in the deal and will continue to handle the management and leasing of the properties.

The metro Atlanta properties are located at 3370 Sugarloaf Parkway in Lawrenceville and 4045 Five Forks Trickum Road SW in Lilburn. The price of the acquisition was not disclosed. The properties are anchored by Publix groceries.

In June 2022, Stockbridge acquired The Bahay, a 200-unit mixed-use apartment community in Los Angeles Filipino town neighborhood, an extension of the Echo Park submarket.

Built in 2020, The Bahay features resort-style interior finishes. The campus includes 24K SF of ground-floor retail and 35K SF of shared amenities, including a fitness studio, club lounge, pool, coworking space and an outdoor lounge area.