Exclusive: Bare Amazon Warehouse Sold For $246 Million – DBT
Jacob Owens November 29, 2022
BEAR – Almost a year after opening, an Amazon warehouse facility in Blue Diamond Park off US Route 13 has been sold to investors for $246 million. This is his second largest commercial real estate sale in the state after a larger Amazon facility. Built by Stoltz Real Estate Partners based in Burra Sinwyd, Pennsylvania.
More than 1,000 people are already working at Bear’s new ILG1 fulfillment center. | | DBT photo by Jacob Owens
BEAR – Almost a year after opening, an Amazon warehouse facility in Blue Diamond Park off US Route 13 has been sold to investors for $246 million. This is his second largest commercial real estate sale in the state after a larger Amazon facility.
built by Stolz Real Estate Partners, located in Sinwyd, Pennsylvania in 2021, the more than 1.3 million square foot warehouse is the first phase of a multi-stage development of the former Greg & Ferrara rented pit and former amusement park on over 100 acres. Between Hamburg Road and Federal School Lane in the Bear area.
Amazon’s bulk goods fulfillment center, known as ILG1, which opened just before the end of 2021, already employs more than 1,000 people.Helped drive Amazon to Delaware 4th largest employer.
The Stoltz company sold the Blue Diamond Amazon facility to PR-Stoltz Propco Blue Diamond Lot 1 LLC on November 22, 2012, in its investor portfolio. The sale of $246.75 million also resulted in more than $6.6 million in real estate transfer tax payments. According to county land records, in Newcastle County he made $3.7 million to the state.
Same as Darmody Properties Record sales of $392 million According to county land records, if MTN1 were transferred to an Australian investment company, the sale of ILG1 would act as a recapitalization for Stoltz, who would remain involved with the new owner LLC.
ILG1’s revenue lags far behind the 3.8 million square foot MTN1, but is significantly ahead. from recent sales Sold 1 million square feet Middletown fulfillment center PHL7 for $118 million. The facility, though similar in size, is much older, having opened ten years ago.
All of this year’s record-breaking sales are testament to the strength of Amazon-leased facilities.
Storz did not return a request for comment on the sale and how it might affect future development plans for Blue Diamond Park on Tuesday.
The company is preparing to embark on future development phases, reportedly investing more than $162 million to build five new warehouses in three phases, totaling about 2.15 million square feet. There is space for Our largest warehouse totals 911,400 square feet and has 156 tractor-trailer docks.
The company has already invested more than $58.2 million to acquire the remaining square footage of the site, according to county land records.
The state is also investing $1 million Grant Site Readiness Improve the infrastructure for serving future sites.
At an April hearing on its grant application, State Senator Nicole Poore expressed concern about the proliferation of warehouses in the corridors, particularly in Blue Diamond Park, which adjoins existing neighborhoods, and whether other uses are possible. I asked
Stoltz’s local legal counsel, Shawn Tucker, responded that there may be uses other than distribution and that WuXi STA wanted the site for a future pharmaceutical manufacturing plant before selecting the Middletown land. He noted that he had considered it closely, but noted that the market demand for warehousing is currently very high. He added that one of the reasons WuXi chose a different site was because the Blue Diamond site currently lacks infrastructure, which the site’s reserve funds will help address.
“Warehousing and industry are certainly permitted uses and our clients see a lot of demand for it, but pharmaceuticals would be great if we could attract another company like [WuXi]said Tucker.
