If you’re a landlord, it’s tough to think of a better tenant right now than Amazon.
Case in point: An Amazon-leased distribution facility traded hands in Los Angeles at a far higher price than the seller bought it for just two years ago.
Intercontinental Real Estate Corporation paid $74 million for a 221,842-square-foot facility in Chatsworth, according to Commercial Observer. The seller was PGIM, Prudential Financial’s asset management arm.
PGIM paid $37 million for the former Ball Corporation packaging plant at 20730 Prairie Street in 2019. PGIM quickly redeveloped it and leased it to Amazon. The complex totals 13 acres.
It’s the first industrial acquisition in L.A. for Boston-based Intercontinental. Private equity firms and institutional investors are keen on L.A. industrial real estate, which is among the tightest markets in the country.
The pandemic didn’t scare off many industrial investors last year, and it remained one of the steadiest markets in the region.
One of the priciest industrial deals of the decade in terms of price per square foot closed in October, for an Amazon-leased facility. Realterm U.S. paid $81 million for the former Costco wholesale property in Torrance, which Amazon will occupy following a renovation.
Amazon-leased space across the U.S. is highly prized for being a low-risk investment. Late last year, investment firm GCP paid $42 million for a 316,500-square-foot Amazon-leased facility in Chicago, making it one of the priciest per-square-foot deals in 2020.
[CO] — Dennis Lynch