CBRE arm scores $106M refi for Amazon-operated warehouses

Investment firm bought the Brooklyn properties for $230M in April

CBRE's Chuck Leitner with the Brooklyn Logistics Center (CBRE, MarchAssociates Construction)
CBRE's Chuck Leitner with the Brooklyn Logistics Center (CBRE, MarchAssociates Construction)

If having Amazon as a tenant is money in the bank, CBRE Investment Management has made a withdrawal.

The independently operated affiliate of CBRE has taken out a $61 million loan on its recently purchased Brooklyn warehouses, operated by Amazon, as part of a $106 million financing package from Bank of America, real estate records show.

The funds replace $45 million originated by JPMorgan Chase when the CBRE affiliate bought the warehouses from Wildflower in April for $230 million.

The loan is secured by 211,000 square feet of warehouse space at 12555 and 12595 Flatlands Avenue, known as the Brooklyn Logistics Center, and an adjacent lot spanning 20,000 square feet at 771 Montauk Avenue.

CBRE Investment Management did not immediately respond to a request for comment. Amazon began leasing the warehouses from Wildflower in 2020.

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While the online retailer overshot on buying and leasing industrial property, announcing it would scale back after booking a $4 billion loss on its rapid acquisition of the asset class, that hasn’t stopped the owners of its warehouses from borrowing against them.

Los Angeles-based Preylock Real Estate recently secured $581 million in CMBS loans after it bought eight Amazon-operated warehouses across the country. Amazon pays an average annual rent for the portfolio of $66.6 million, or about $10.80 per square foot.