Sales  ·  Industrial

Brookfield Drops $329M on Fully Leased Southern California Distribution Center

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In the face of rising interest rates, one of the most prominent landlords in Southern California has placed another big bet on the rampant warehousing and e-commerce industry.

Brookfield has acquired a recently completed distribution center with 1.8 million square feet in the Inland Empire for $328.7 million, or about $183 per square foot, The Real Deal reported. Fast fashion company Shein leases the two-building property in the city of Cherry Valley in Riverside County.

SEE ALSO: Brookfield’s 777 Tower Sale Falls Through: Sources

Shopoff Realty Investments and Artemis Real Estate Partners sold the development. CBRE (CBRE)’s Barbara Perrier and Darla Longo brokered the deal for Brookfield.

The Inland Empire ended 2022 with $5 billion in industrial investment sales, according to a recent report from CommercialEdge, and 2023 has started on a similar pace. Average warehouse asking rents reached $8.05 per square foot by the end of December. That’s 14.2 percent higher than a year ago and the sharpest increase in the nation. 

Gregory Cornfield can be reached at gcornfield@commercialobserver.com.