Brookfield Properties continues to expand its U.S. logistics footprint at a rapid pace with the addition of yet another state-of-the-art facility.
The company has just acquired the fully leased property at 1901 W. Center St. in Colton, Calif., an approximately 232,600-square-foot asset in the heart of the high-demand Inland Empire, in an off-market transaction.
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Brookfield purchased the asset from Avalon Apparel Group LLC for $38 million. “Sourcing well-located, high-quality industrial assets at a favorable price point is extremely challenging in today’s market,” Paul Jones, vice president, investments, with Brookfield’s Real Estate Group, told Commercial Property Executive. “Severe supply constraints, robust tenant demand, rapid rent growth and a surplus of capital continues to drive pricing higher.”
Brookfield is the third owner of the brand-new 1901 W. Center, which occupies 12.5 acres in an area primed to serve last-mile customers in the Inland Empire and throughout Los Angeles County, as well as neighboring Orange County.
Hillwood Investment Properties, a Perot Co., developed the property as Pellisier Logistics Center in 2020 and immediately upon completion, sold the building to Avalon Apparel Group LLC, which relied on a $23.7 million loan from Thorofare Capital to purchase the facility for $29.7 million. At the time, Avalon simultaneously inked a lease to occupy the building in its entirety under a triple-net lease for an initial term of 10 years, with the option for two five-year lease extensions.
Growth in the Golden State
Brookfield has its eye on California—Southern California, specifically—as a target global gateway for the growth of its logistics business. The attraction: the unrivaled tenant demand, spurred in great part by high population density and port infrastructure. Over the last 12 months, the company has invested $2 billion in industrial and logistics assets in the area. “Still, our plan is to continue to grow our Southern California industrial portfolio through strategic acquisitions and development,” Jones said. “We have multiple buckets of available capital that provide us with the flexibility to execute on various types of deal profiles—core, value, and development.”