Brookfield Properties Purchases 232,600 SQFT Industrial Property in Colton for $38MM

Dermody Properties, Dermody Properties Industrial Fund III

By Catherine Sweeney

Brookfield Properties continues to expand its logistics portfolio, with the acquisition of a fully leased property in the Inland Empire. The 232,600-square-foot property was purchased for approximately $38 million, or approximately $163 per square foot, according to Commercial Property Executive. 

The property is located at 1901 W. Center Street in Colton, and was sold in an off-market transaction by Avalon Apparel Group LLC, a Los Angeles based fashion company. 

The distribution center sits on 12.5 acres of land,  and offers 24 dock high doors, 168 trailer parking spaces and 219 auto parking spaces. It is located just minutes from I-10, I-215 and state roads 60 and 91. It is also in close proximity to Riverside’s Business District and the Agua Mansa Industrial Corridor.

In addition to 1901 W. Center, Brookfield owns and operates 22 million square feet of logistics space with 175 warehouse or distribution facilities globally. The company operates in other sectors as well, including retail, multifamily and hospitality. Across its various sectors, Brookfield manages 320 million square feet, with an additional 40 million square feet currently being developed. 

Prior to Brookfiled’s most recent acquisition, the property was developed by Hillwood Investment Properties as Pellisier Logistics Center. Upon being completed in 2020, the property was sold to Avalon Apparel Group LLC, with a loan from Thorofare Capital for $23.7 million. At the time of the transaction, Avalon also signed a 10-year lease to occupy the space, with the option for two five-year lease extensions, according to a news release from Thorofare Capital.

Industrial properties in the Inland Empire similar to the recently acquired space have been hard to come by, according to reports from JLL Capital Markets. Currently, vacancy rates across the Inland Empire total 2.7 percent, which JLL reports is “historically low” for the Inland Empire. With demand for industrial space outpacing supply, the number of leases signed in the first quarter rose 43.9 percent compared to the first quarter of 2020. Looking ahead, JLL anticipates a shortage of warehouse supply to continue into late 2021 or 2022 as developers face the challenge of trying to build on a limited supply of land. 

As of this writing, Brookfield could not be reached for comment.