Transaction includes nearly 2.8 million square feet of logistics space in California and Arizona
BrightSpire Capital has reached an agreement to sell two large industrial distribution properties on the West Coast for approximately $300 million, marking another step in the company’s strategic shift toward real estate lending and away from direct property ownership.
The real estate finance company announced the sale of two fully leased distribution centers occupied by grocery operators Albertsons and Safeway. The transaction reflects BrightSpire’s ongoing effort to concentrate on its core lending business, particularly first-mortgage loan origination.
Previously operating under the name Colony Credit Real Estate before rebranding in 2021, BrightSpire has gradually reduced its real estate holdings while expanding its focus on financing opportunities within the commercial property sector.
The company entered into a purchase and sale agreement earlier this month with an undisclosed buyer. While financial details beyond the reported $300 million sale price were not revealed, property records indicate that BrightSpire originally acquired the assets for approximately $292 million.
Together, the two facilities comprise nearly 2.8 million square feet of industrial and logistics space. The portfolio is currently tied to a $94 million commercial mortgage-backed securities loan, and the sale is expected to be completed by September 14, subject to lender approvals and the assumption of existing debt obligations by the purchaser.
Both properties serve as critical components of Albertsons’ supply chain network, helping support hundreds of Safeway and Albertsons grocery stores throughout Northern California and the Southwestern United States.
The larger asset is a 1.89 million-square-foot cold-storage distribution center located in Tracy, California. Safeway has occupied the facility since 1992 and invested roughly $40 million in automation improvements during 2015. The long-term lease remains in effect through August 2038 and includes multiple renewal options.
The second property is a 910,250-square-foot distribution center in Tolleson, Arizona. Albertsons has leased the facility continuously since 1993 and has invested an estimated $95 million into operational enhancements, including robotics systems, equipment upgrades and logistics infrastructure improvements. The lease is also scheduled to run through August 2038 with several extension opportunities.
The transaction highlights continued investor interest in mission-critical logistics assets backed by long-term leases and major retail tenants, even as property owners adjust their investment strategies to align with evolving market conditions.
BrightSpire Capital has not publicly commented on the transaction, and company representatives have not released additional details regarding the buyer or future plans for the assets.
Source: Original reporting by Mark Heschmeyer, CoStar News.
