UPS Sells Portfolio to Fortress for $368M Amid Cost-Cutting Effort
Two properties are in Southern California, with two others in Illinois and UPS’s home state of Georgia
By Nick Trombola September 18, 2025 7:30 pm
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United Parcel Service (UPS) has sold a four-building portfolio to a private equity giant as it reckons with a major internal cost-cutting effort.
UPS traded the portfolio, a mixture of industrial and office properties, to Fortress Investment Group for roughly $368 million, according to CoStar, which first reported the news. The international shipping company plans to continue occupying at least one of the properties via a sale-leaseback deal.
Two of the properties are in Southern California: a 765,456-square-foot distribution facility at 11991 Landon Drive in Jurupa Valley in the Inland Empire, and an 84,994-square-foot warehouse at 3624 West Century Boulevard in Inglewood. The other two properties are at 490 Supreme Drive in Bensenville, Ill., and at 12380 Morris Road in Alpharetta, Ga.
Representatives for UPS and for Fortress did not immediately respond to requests for comment.
The move is in line with UPS’s cost-reduction strategy amid a volatile global trade environment and the reduction in volume from Amazon, its biggest customer. Atlanta-based UPS aims to cut expenses by some $3.5 billion this year, and has closed more than 70 owned or leased locations across the U.S. within the first half of this year alone.
In one of those deals, UPS sold an industrial building in Long Island City, Queens, to Terreno Realty for about $31.1 million.
“For our sector, this remains a very unsettling time,” Carol Tomé, UPS CEO, said during the company’s latest earnings call. “Changes in trade policy have not been cemented, and the impact on customer demand and the overall economy is unknown. While our customers, who have scale, may be able to thwart the impact of rising costs due to tariffs, many of our SMB [small and medium-size business] customers may not. Further, peak plans have not yet been submitted by our customers, which is an indication that they, too, are having difficulty in forecasting demand for the holiday selling season.”
Nick Trombola can be reached at ntrombola@commercialobserver.com.
