$3 Million Small Bay Industrial Acquisition in Riverside

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $3 million small bay industrial acquisition in the Inland Empire (Riverside-San Bernardino) typically finances a 15,000 to 30,000 square foot multi-tenant industrial flex building with 4 to 8 small-bay tenants. Most $3M IE small bay industrial acquisitions fund through bank balance sheet, SBA 504 for owner-users, or specialty industrial banks.

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What a $3M Small Bay Industrial Capital Stack Looks Like

$3M IE small bay industrial acquisitions typically fund as a single senior loan. Owner-user SBA 504 versus investor bank balance sheet are the primary alternatives.

Capital Source Rate / Cost Size / LTV Notes
SBA 504 (owner-user) Bank 1st 7.00% / CDC 5.85% fixed $3M / 90% LTC Owner-occupant minimum 51% occupancy
Bank balance sheet 7.25 to 8.50% $3M / 65 to 70% LTV Recourse typical; depository relationship
Specialty industrial bank 7.45 to 8.85% $3M / 65 to 70% LTV Stabilized small bay
DSCR loan 7.85 to 9.50% $3M / 70 to 80% LTV Single-asset DSCR program

Pricing reflects active CLS CRE quote pipeline as of April 2026. Specific deal pricing depends on sponsor, property, and structure.

Who Closes a $3M Small Bay Industrial Deal

Typical $3M IE small bay industrial sponsors are private capital industrial investors with 5 to 30 properties or owner-operator small businesses expanding to ownership. Inland Empire is one of the most active small bay industrial markets in the country.

A Real $3M Example

On a $3.2M acquisition of a 22,000 sq ft small bay industrial flex building in Ontario, CA, leased to 6 small-bay tenants on staggered 3 to 5 year leases, the investor sponsor financed through bank balance sheet at 7.65 percent fixed 5-year, 67 percent LTV ($2.1M), with full recourse.

Anonymized. All deal references protect borrower and lender identity.

$3M Small Bay Industrial Riverside FAQ

Small bay industrial refers to multi-tenant industrial flex buildings with smaller tenant suites (typically 1,000 to 5,000 sq ft per tenant) serving local contractors, light manufacturing, distribution, and service businesses.
The Inland Empire is one of the largest logistics markets in the country with sub-3 percent vacancy on stabilized industrial. Demand drivers include LA port logistics, e-commerce distribution, and Southern California population growth.
Yes for owner-occupants. SBA 504 finances owner-user small bay at 90 percent LTC where the borrower's business occupies at least 51 percent of the building.

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