OMP Pays Brookfield $59M for LA-Area Industrial Asset

Overton Moore Properties has expanded its infill Los Angeles footprint with the acquisition of 14555 Alondra Blvd., a 248,105-square-foot industrial property in La Mirada, Calif., from Brookfield Properties for $58.5 million.

The property is fully leased to a high-quality tenant with approximately 5.5 years of remaining lease term. The acquisition provides strong in-place cash flow at an attractive going-in yield, with contractual annual rent increases through the remaining lease term, according to OMP.

The sale comes five years after Brookfield Properties paid $55 million for the 13.5-acre infill Los Angeles County site. Brookfield acquired the property in September 2021 from Dunkel Bros. Machinery Moving Inc., according to Yardi Matrix. The property was sold at that time after Dunkel Bros. was acquired by MEI Industrial Solutions, but MEI remained a tenant at the property.

In March, MEI, formerly known as MEI Rigging & Crating, inked a five-year lease renewal valued at $21 million at the site, according to Colliers, which represented Brookfield in the lease deal. Brookfield decided to sell the property after signing the market-rate lease, according to L.A. Business First. The business publication was also the first to report the sale price.

It’s not the first deal between Brookfield and OMP, a Torrance, Calif.-based privately held real estate investment and development firm specializing in industrial real estate. In December, a fund backed by Brookfield sold a 525,756-square-foot warehouse at 890 E. Mill St. in San Bernardino, Calif., to OMP for more than $120 million. Brookfield had paid $84.4 million for the Inland Empire industrial asset as part of a two-building transaction in 2020, according to Yardi Matrix. Kohl’s leases the entire asset.

Closer look at the La Mirada asset

The heavy industrial facility features 17 dock-high doors and 10 grade-level doors, according to Yardi Matrix data. OMP notes the property also has drive-in loading across two buildings, 1600-amp power and an oversized secure concrete yard. Other features include more than 11,000 square feet of office space, 22-foot clear heights, a truck washdown area and a full-service mechanics buildings.

The facility was built in 1969 and fully renovated in 2016. Located in the Mid-Counties submarket, the property borders Orange County in the Gateway Cities region and is less than 1 mile from Interstate 5. It is 17 miles southeast of downtown Los Angeles and 23.4 miles from the Port of Los Angeles. It is also situated 20 miles northeast of Long Beach, Calif., and 22.1 miles from the Port of Long Beach. In addition to I-5, the property has visibility and immediate access to the 91 freeway.

Other OMP deals

Over the past 52 years, OMP has constructed and acquired more than 40 million square feet of industrial and mixed-use space across California, Arizona, Nevada and Utah. In April, OMP broke ground on the West Tracy Logistics Center, a three-building, 678,913-square-foot development in Tracy, Calif. The Central Valley site has proximity to Interstates 508 and 205, offering connectivity to the entire Western U.S. The three buildings will have 231,281 square feet, 281,656 square feet and 165,976 square feet of space.

In July 2024, OMP purchased 19949 Kendall Drive, a 104,500-square-foot, Class A industrial property in San Bernardino, Calif., from a joint venture between Bixby Land Co. and a global investment manager. Completed in 2008, the property was fully leased at the time of closing. The Inland Empire location provides access across Southern California’s major transportation corridors.

OMP sold the Morton Commerce in Newark, Calif., to Terreno Realty Corp. in March 2023 for $186 million. The complex consists of four industrial distribution buildings totaling roughly 603,000 square feet across 30.5 acres. The property is adjacent to Interstate 880, California State Route 84 and the Dumbarton Bridge, which crosses San Francisco Bay.