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.
Warehouse Giant Seeing Insatiable Demand From Amazon, Walmart
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.
©2020 Bloomberg L.P.
-
Signature Play: The Classic Cocktail Is Dead. Or Is It?
Classic cocktails are disappearing from India's cocktail menus. But they're still being ordered, taught to bartenders and borrowed from. So, who's really having the last drink?
-
A New Samvat Wishlist: Inclusive Prosperity And Human Development
India has strengthened its economic foundations through infrastructure, digital access and enterprise. Its next growth chapter must deepen productivity, create better livelihoods and widen participation in prosperity.
-
Love, Sex Aur Dhokha: The Audacious Plot To Spy On Jensen Huang
A Taipei dinner, a Singapore chip buyer and a suspected Chinese asset: inside the alleged spy operation that got close to NVIDIA's Jensen Huang.
-
Ten Things I Learnt This Samvat
Patience can be a trap. Cheap stocks can stay cheap. Leverage can wipe you out. What did Samvat 2082 teach us? Niraj Shah writes on 10 lessons from the year gone by.
-
Talking Points This Week: Tech Nerves, FII Buying, And A Faraway Banking Shock
The global markets are not shining this Diwali. The exception in the large markets is, India.
-
Midterm Rally Lasted A Day. The Hard Reality Of A Divided US May Last Two Years | Opinion
Between a contested AI boom, a debt ceiling that arrives in 2027 and a president with every incentive to act alone, the next two years may prove more volatile than the first day's rally suggests.
-
Blue Wave Will Derail the AI Trade but Won't Dismantle the AI Era | Unhedged Position
The Democrats' sweep of the US Congress will see politics collide with economic forces both over the long and short term.
-
It's Time To Take The GST Council's Bet On Trust Global
Payment records can prove India's services exports, and clear, proportionate rules can bring foreign digital sellers into the tax net.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
