Broe Pumps $100M Into Rail Logistics Platform
The expansion will be in collaboration with affiliate OmniTRAX.
Broe Real Estate Group is committing $100 million to scale its industrial rail real estate platform into a national network of industrial outdoor storage sites and multimodal logistics hubs, in response to the growing demand for flexible, rail-connected supply chain infrastructure.
Broe stated that the investment will move along two tracks, accelerating development across its existing portfolio of rail-served assets, while also supporting expansion into high-density markets where rail connectivity can streamline port-to-consumer distribution.
The expanded platform is being undertaken in collaboration with fellow Broe Group entity OmniTRAX, which operates about three dozen terminal and shortline railroads across the U.S. and Canada. Several of these serve major port areas, including Chicago, Greater New York/New Jersey and Savannah, Ga.
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Broe Real Estate Group noted that logistics users are seeking alternatives to traditional warehouse space, especially options that provide direct rail access and multimodal connectivity. Such properties, the company remarked, are increasingly used for equipment and product storage, as well as transloading and distribution activities tied to domestic supply chains.
With that in mind, the expanded rail logistics platform will engage in both ground-up development and repositioning underutilized rail-connected and adjacent properties. Broe’s Industrial Outdoor Storage division, which focuses on developing flexible, rail-served sites that can accommodate a range of logistics users, will be part of that effort.
Broe asserts that rail-connected IOS properties offer a lower-cost option with direct access to transportation networks, making them attractive for bulk goods, construction materials and equipment storage.
Broe Real Estate Group did not reply to Commercial Property Executive’s request for additional information.
IOS no longer merely a niche
Last August, CPE took an in-depth look at the IOS market, noting the broad-based influx of capital from a range of investors that includes REITs, private equity and triple-net lease funds. In addition, private credit opportunities are expanding, by way of bridge loans and structured finance.
In a different aspect of The Broe Group’s commercial real estate doings, the company began work in November on 250 Clayton, an eight-story, 175,000-square-foot office building in Denver. On completion in the second quarter of 2028, the building will be the headquarters for The Broe Group, Broe Real Estate Group and OmniTRAX, which collectively will occupy about a quarter of the building.
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