Brookfield Sells 632K-SF Industrial Portfolio to Realterm for $277M

Brookfield (BN) Properties has sold a portfolio of industrial outdoor storage (IOS) properties spread out around the country to Realterm for over $277 million, the company announced Thursday.

The portfolio, which had been owned by Brookfield Asset Management, comprises 13 single-tenant truck terminals and low-coverage industrial assets spanning a total of 631,604 square feet, according to a spokesperson for Brookfield. The properties are currently leased to 10 tenants across various sectors.

The 131-acre portfolio is spread across U.S. markets including the Dallas-Fort Worth area, Northern New Jersey, Chicago, Orlando, Seattle, and California’s Inland Empire and Bay Area, the spokesperson said.

The deal closed Dec. 27, with Eastdil Secured arranging the financing, the spokesperson said.

“The IOS portfolio attracted significant interest from institutional investors, and the sale to Realterm, a leader in the transportation and infrastructure real estate sector, is a testament to our ability to recognize market trends early,” Devin Barnwell, managing partner of real estate at Brookfield, said in a statement.

A spokesperson for Realterm did not immediately respond to a request for comment. Brookfield declined to provide details on the financing.

Realterm’s acquisitions as part of the deal include two industrial outdoor storage lots at 10088 General Drive and 9858 Sidney Hayes Road in Orlando, Fla., for $18 million and $19 million, respectively, the Brookfield spokesperson confirmed.

Brookfield bought the two sites in 2020 and 2021 for a combined $23.5 million, the Orlando Business Journal reported. The company acquired the other 11 assets between 2017 and 2022, the spokesperson said.

Brookfield’s entire portfolio will now go to Realterm, which has been active recently in industrial property investments. In November 2022, the Maryland-based investment firm closed on three acquisitions in Southern California totaling $116 million, as Commercial Observer previously reported.

Realterm also bought a rare-asset trucking facility in California’s San Bernardino County for $95.5 million in May 2022 and a 63,523-square-foot industrial complex in Washington, D.C., for $16.4 million in July 2021.

“Investor demand for IOS properties has surged due to the increasing need for storage and logistics solutions that support supply chain resilience,” Brian Budnick, managing director at Eastdil, said in a statement. 

Isabelle Durso can be reached at idurso@commercialobserver.com.