Brookfield Fund Sells Inland Empire Warehouse for Over $120M: Sources

Brookfield is notably unloading distressed offices in Southern California — but it’s also trading industrial developments at considerable premiums in the region.

A Brookfield-backed fund sold the 525,756-square-foot property at 890 East Mill Street in San Bernardino to Overton Moore Properties for “north of $120 million,” a source familiar with the deal told Commercial Observer. Brookfield acquired the property from department store chain Kohl’s in 2020 for about $84 million as part of a sale-leaseback deal, records from Reonomy show. 

Kohl’s still uses the entire property as a distribution center, and has 4.5years remaining on its lease. 

Cushman & Wakefield’s Jeffrey Cole, Jeff Chiate, Rick Ellison, Matthew Leupold, Aubrie Monahan and Kristen Schottmiller represented Brookfield in the deal, while C&W’s Rob Rubano and Brian Share arranged acquisition financing of an undisclosed amount on behalf of Overton Moore. 

“The property stands out for its rare combination of a large cross-dock building, significant DH loading, and abundant trailer parking,” Leupold said in a statement. “The property’s long-term lease to a credit tenant and its strategic location in one of the nation’s premier logistics markets make it a compelling investment for Overton Moore Properties.”

The property is roughly 60 miles east of Ports of Los Angeles and Long Beach, within 10 miles of four major intermodal rail yards, and less than four miles north of Interstate 10. 

“890 East Mill Street has been a strong performer for us, and this transaction underscores sustained demand for well-leased, and well-located industrial assets in the Inland Empire,” Joonas Partanen, senior vice president and head of West Coast logistics operations for Brookfield Properties, added in a statement. 

Late last month, Brookfield completed a $1.1 billion recapitalization for its U.S. logistics portfolio, which includes 20 properties in the Inland Empire, New Jersey, South Florida, and Washington, D.C.

Nick Trombola can be reached at ntrombola@commercialobserver.com.