Amazon-Leased Warehouse Up for Sale as California Market Thaws
(Bloomberg) -- A California developer is betting that commercial property investors are ready to do deals again after the market froze during the pandemic.
LDK Ventures is marketing a 707,820-square-foot logistics facility in Richmond, California, just northeast of San Francisco, that is leased to Amazon.com Inc., according to sales materials obtained by Bloomberg News.
The property could trade hands at a capitalization rate around 4%, roughly what industrial real estate fetched before the virus, according to two people familiar with the matter who asked not to be identified discussing the private sales process.
“Amazon is the world’s largest and most valuable e-commerce company,” a sales flier from broker Cushman & Wakefield reads. “With a 10-year triple net lease in place, the property offers investors the opportunity to acquire a stabilized asset with a secure cash flow stream.”
Representatives for Cushman and LDK declined to comment.
LDK had been planning to sell the property this year and decided to move forward when it realized the price may not have been affected by the pandemic, one person familiar with the matter said. Investors have been betting that warehouses will be one of the real estate sectors that holds up best in coming months. Demand for online ordering has spiked as states imposed lockdowns and consumers grew wary of venturing out to stores.
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