Thursday, February 17, 2022

Mega Amazon Warehouse in Delaware Trades for $392 Million

By Linda Moss CoStar News

 An Australian company has expanded its U.S. industrial portfolio with a $392 million purchase of a mega Amazon distribution center in Wilmington, Delaware, the second sale of a nearly 4 million-square-foot warehouse leased by the e-commerce giant in almost four months. The deal ranks among the largest industrial sales of 2021.

Macquarie Asset Management Real Estate on Tuesday said it had finalized its acquisition of a multistory fulfillment facility at 1025 Boxwood Road from Dermody Properties of Reno, Nevada. The purchase is the largest to date made on behalf of a U.S. investment account managed by Macquarie’s U.S. core/core-plus real estate team. The warehouse, which incorporates Amazon’s robotics technology, opened in September and has 3.8 million square feet.

Demand has outpaced supply for industrial space across the United States as online purchasing has risen, growth that was propelled by the COVID-19 pandemic. In response, Seattle-based e-commerce giant Amazon has vastly expanded its distribution network, in part by opening dozens of warehouses 2 million square feet and larger across the nation. And the properties they are leasing have drawn big offers from buyers.

“This is a highly efficient fulfillment center format in a strategic location which provides access to more than 17 million people within a two-hour drive,” Christopher Quiett, head of U.S. core/core-plus real estate at Macquarie, said of the Wilmington center.

The Wilmington transaction took place in October, but Macquarie didn’t announce it until this week. And earlier this month, a 2.68 million-square-foot distribution center that Amazon leases at 500 32nd St. in Bondurant, Iowa, sold for $326.2 million. That’s the biggest industrial deal so far this year, and one of the nation’s biggest real estate transactions overall thus far in 2022.

In March 2020, Macquarie’s U.S. real estate team acquired Brandon Woods III, a logistics portfolio in Baltimore’s Anne Arundel County, in the town of Glen Burnie, with two warehouse buildings totaling 840,000 square feet and 50 acres of developable land. The sale price for 7550 Perryman Court, with 500,000 square feet, and 7659 Solley Road, with 340,000 square feet, was $90 million.

At the time of the acquisition, the Perryman Court building was leased to Best Buy and the other was still under construction on a speculative basis, with no tenant signed up. That building was leased to Amazon within six months of the acquisition.

In the past 90 days, Macquarie Asset Management’s U.S. core real estate team has also acquired 375 Broadway, a fully leased mixed-use building in New York City’s SoHo neighborhood for $130 million,  as well as fully leased creative office buildings in Phoenix and Seattle.

Macquarie Asset Management’s real estate division is a global real estate investment business with an extensive network and capability across real estate investment management, asset management and direct investment.

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