Friday, January 7, 2022

LBA Realty Pays $28 Million for Northeast Philadelphia Amazon Facility

 By Carlos Likins CoStar News

LBA Realty has purchased a newly renovated distribution facility leased by Amazon for $27.95 million, or about $283 per square foot.

The California-based investment firm acquired the facility from SBG Real Estate, which initiated the renovation of the property. SBG Real Estate originally paid $8.5 million for the facility in May 2020.

Located at 700 Ramona Ave., the 98,652-square-foot facility sits on 17.5 acres of industrial land in Northeast Philadelphia and provides parking capacity for 352 delivery vans. Amazon's lease encompasses both the building and parking areas as the need for vehicular storage is needed for same-day delivery operations. Amazon's 10-year lease commitment is valued at nearly $12 million.

Amazon's parking requirements pushed the developer to forgo renovations to a second building and instead raze the existing facility to provide for the heavy parking requirement. The facility adds to a growing number of facilities Amazon operates in Philadelphia.

"The site's inner-city location in conjunction with Amazon's tenancy attracted widespread interest to the opportunity."

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