BentallGreenOak Buys Amazon-leased Warehouse in Newark for $138M

BentallGreenOak has snapped up a 575,000-square-foot warehouse in Newark leased by Amazon.com for $138 million.

An affiliate of the New York- and Toronto-based unit of Canadian insurance giant Sun Life Financial bought the Amazon fulfillment center at 38811 Cherry Street, the San Jose Mercury News reported. The price came out to $240 per square foot.

The seller in the all-cash deal was Metropolitan Life Insurance, based in New York. Last summer, the 29-acre property was assessed at $100 million.

The Amazon warehouse is near Interstate 880, which connects to the East Bay and Silicon Valley. It’s also 3.5 miles from State Route 84, which links up with the Peninsula.

The complex totals 575,000 square feet, according to Conor Commercial Real Estate, the principal developer of the property. “The building offers a prominent Bay Area location,” it said on its website.

The fulfillment center provides Amazon with facilities to support its distribution operation, according to the developer.

“The e-commerce retailer benefits from the facility’s 32-foot clear height, 120 dock doors, full-size truck courts and on-site parking for 175 trailers,” Conor Commercial said.

BentallGreenOak is a real estate arm of Sun Life Financial, based in Toronto.

Last May, it bought a 175,000-square-foot warehouse in Southern California’s Inland Empire for $83.4 million.

In February2021, the asset manager bought a 100,000-square-foot warehouse fully leased by Amazon in Brooklyn, New York, for $46 million.

The previous month, BentallGreenOak bought an 18-story office building in Tokyo for $693 million.

— Dana Bartholomew