Amazon.com to Shutter Grocery Warehouse in SF’s Dogpatch

Amazon.com is closing a 38,500-square-foot grocery fulfillment center in San Francisco’s Dogpatch, while gearing up for a 650,000-square-foot logistics center in Showplace Square.

The Seattle-based e-commerce giant will shut its UltraFastFresh fulfillment center at 888 Tennessee Street, across from Esprit Park, the San Francisco Chronicle reported, citing a state employment notice. The center closes on June 27.

Amazon leases the two-story industrial building purchased by Los Angeles-based American Realty Advisors in 2022 for roughly $35 million, or $909 per square foot.

The store’s closure comes as the on-line shopping platform closes warehouse locations to consolidation at a proposed facility across town.

Last year, the company closed a 75,000-square-foot warehouse at 435 23rd Street it had leased in 2021. A 112,000-square-foot Amazon delivery hub at 749 Toland Street in Bayview is slated for redevelopment by locally based Prologis.

Amazon now appears poised to consolidate its operations at a former site for garbage trucks in Showplace Square.

The company paid $202 million in 2020 for the 6-acre parcel at 900 Seventh Street, where it plans to open a three-story, 650,000-square-foot distribution warehouse, according to SFYimby.

In August, Amazon resubmitted plans for the development.

The company, which originally filed plans to build the facility in 2021, was stopped in its tracks in March last year when the city imposed the moratorium on new delivery facilities after environmentalists, laborers and neighbors staged a rally in front of City Hall to protest its expansion plans.

Plans call for a three-story warehouse, including 13,700 square feet of offices and 2,500 square feet of shops and restaurants, with rooftop parking for 395 cars. The complex would employ 200 parcel vans a day for “last mile” delivery to local customers.

Amazon also paid $96 million for a vacant 215,600-square-foot warehouse at 1000 San Mateo Avenue in San Bruno.

Like the Seventh Street parcel in San Francisco, the SkyPark site is earmarked for redevelopment into a parcel delivery station. And while the company has yet to break ground, a spokesperson confirmed it’s moving forward with the plan.

In 2022, Amazon signed a new 345,000-square-foot lease on a 15-acre industrial site in Brisbane, and bought a former Owens Corning factory complex in Santa Clara for nearly $240 million.

— Dana Bartholomew