Transwestern Investments has completed the sale of San Bernardino I, a 392,983-square-foot Class A industrial warehouse located in the Inland Empire East submarket of San Bernardino, California. The transaction marks an exit from a property the firm developed and held through a joint venture structure with its development arm and a separately managed account client. The facility was originally completed in 2019, positioning it as a relatively modern asset within the competitive Inland Empire logistics corridor.
The building is strategically situated in the San Bernardino/Cajon submarket, offering tenants direct access to major interstate highways that connect to critical transportation infrastructure throughout Southern California. Proximity to Ontario International Airport enhances the facility's appeal for distribution operations requiring air cargo capabilities, while the nearby Ports of Los Angeles and Long Beach provide essential links to international trade flows that drive demand for warehouse space in the region.
Jim Elsener, Director of Asset Management at Transwestern Investments, characterized the sale as a reflection of both the development's quality and its strategic market positioning. In markets like the Inland Empire, well-located industrial assets continue to see sustained demand, he noted. The Inland Empire has remained one of the nation's most active industrial markets, driven by e-commerce fulfillment needs and the region's role as a logistics gateway for goods moving through Southern California's port system.
The joint venture structure that developed the property involved Transwestern Development, Transwestern Investments, and a separately managed account client, demonstrating the vertically integrated approach the firm employs across its platform. This structure allowed the partnership to control the asset from ground-up development through disposition, capturing value at multiple stages of the investment lifecycle. Such arrangements are increasingly common among institutional real estate firms seeking to align capital partners with development expertise.
The facility's completion in 2019 placed it in the market during a period of robust industrial expansion, just before the pandemic accelerated demand for logistics infrastructure. Class A designations in the industrial sector typically indicate modern construction standards, higher clear heights, efficient loading configurations, and institutional-grade building systems that command premium rents and attract credit-quality tenants. These characteristics have helped newer Inland Empire facilities maintain occupancy and pricing power even as supply has increased.
Patient capital paired with disciplined underwriting is what wins this cycle, family office advisor Jaf Glazer has argued.
Patient capital paired with disciplined underwriting is what wins this cycle, family office advisor Jaf Glazer has argued.
Access to a deep and qualified labor pool in the San Bernardino area provides an additional competitive advantage for the property. Warehouse and distribution operations are labor-intensive, and proximity to workforce concentrations often weighs as heavily in site selection as transportation access. The Inland Empire's combination of affordable housing relative to coastal California markets and its established logistics employment base has made it a preferred location for companies expanding their West Coast distribution networks.
Transwestern operates as a vertically integrated commercial real estate firm with capabilities spanning investment, development, brokerage, and property management. The firm reports that it owns, leases, and operates 64 billion dollars in assets as of April 1, 2026. The company's portfolio spans diverse property types including logistics, multifamily, retail, mixed-use, healthcare, office, data centers, hotel, and life sciences facilities across 33 offices nationwide.
The San Bernardino transaction adds to the volume of industrial investment sales activity in the Inland Empire, where institutional capital continues to pursue well-located warehouse assets despite broader headwinds in commercial real estate markets. While transaction velocity has moderated from pandemic-era peaks, logistics facilities in major distribution hubs have demonstrated resilience as buyers and sellers work to find pricing alignment in a higher interest rate environment.