Amazon fulfillment center on the market for $355 million
KATHY A. BOLTEN May 12, 2021 | 1:10 pm
1 min read time264 wordsAll Latest News, Real Estate & Development
The recently completed Amazon AR Sort Fulfillment Center in Bondurant is on the market for nearly $355 million, about $300 million of which is an assumption of debt, according to a news release from Avison Young, a global real estate adviser.
“Across the country, well-leased industrial properties — particularly if they are leased to high-credit tenants — are more valuable than they ever have been,” said John Kevill, president of U.S. Capital Markets for Avison Young, which is marketing the property. “There is no more valuable logistics distribution facility than one occupied by Amazon.”
The state-of-the-art facility, with a gross area of more than 2.69 million square feet, opened in December at 500 32nd St. S.W. in Bondurant.
The property is one of the largest Amazon-occupied properties to go on the market so far in 2021, according to a news release. The property’s seller is Mesirow Realty Sale-Leaseback of Chicago.
Amazon properties are typically bought by large institutional funds seeking “core investments and stable cash flows,” Kevill said. Off-shore investors have also been interested in the properties as well as private equity funds and real estate investment trusts.
Kevill said that improvements to the property, particularly in the area of technology, will create significant tax benefits to its next owner.
“The next owner is going to be able to accelerate the depreciation of those improvements and in the first year of ownership have a significant tax benefit,” he said.
Amazon leases more than 95% of the warehouse space it occupies in the United States, according to information included in its annual report.