Amazon Warehouse Sold to REIT

AUSTIN – (Realty News Report) An Amazon“last-mile” distribution facility in Austin has been sold to Four Springs Capital Trust, real estate investment trust based in Lake Como, New Jersey.

Amazon’s “last-mile” distribution warehouses are intended to be close to residential areas and often serve as the final staging ground before shipments arrive at customers’ doorsteps. The “last-mile” facilities are typically smaller that Amazon’s large-scale “fulfillment” distribution facilities, which are often close to 1 million SF in size. Amazon grew significantly during the coronavirus pandemic.

In the Austin deal, Mohr Capital, a Dallas-based privately held real estate investment firm, was the seller of the Amazon-occupied building, called MetCenter Building III.

The 160,000-SF warehouse/logistics building is located at 7000 Metropolis Drive in Austin’s Southeast industrial submarket. The property is 100% occupied by Services LLC and serves as its primary last-mile distribution facility in the Austin metro area. The sale includes the adjacent 20-acre parking lot, which is also currently leased by Amazon.

“After more than a year of owning the facility and the departure of one of its occupants, we worked closely with Amazon in 2020 and early 2021 to exercise its right of first offer to fully occupy the building through 2031. While our intention was always to hold this asset long-term, Four Springs’ off-market offer was very compelling. The extended lease-term, the credit quality of the tenant, the solid real-estate fundamentals of the industrial market and the great relationship we have with Four Springs made this deal possible,” said Rodrigo Godoi, managing director of investments for Mohr Capital.

In 2019, Mohr Capital secured MetCenter Building III as part of a 404,800-SF portfolio acquisition from Zydeco Development. At the time of purchase, the portfolio consisted of MetCenter Building III – then occupied by both Amazon and Uber Advanced Technologies – as well as a four-building, 244,800-SF office facility occupied by technology, government and health care tenants.

“This transaction underscores Mohr Capital’s ability to deliver the highest risk-adjusted returns on its investments,” said Bob Mohr, chairman of Mohr Capital. “While the strength of the industrial market and the flight toward quality in the wake of the pandemic certainly contributed to this deal, you can’t discount the decades of investment, asset management and corporate leasing experience we bring to the table. We’re very pleased with the outcome of this transaction, and we look forward to the other opportunities this sale will bring our firm.”

The property is situated within MetCenter – a 550-acre, Class A, mixed-use business park – just 10 minutes from Austin’s urban core and adjacent to Austin-Bergstrom International Airport with immediate access to the city’s major thoroughfares, including Highway 183, U.S. 290, Highway 130, Highway 71 and Interstate 35.

Godoi and Four Springs Capital Trust CEO William Dioguardi negotiated the transaction.

June 2, 2021 Realty News Report Copyright 2021

Photo: Courtest Mohr Capital

For more about Texas development, check out the book Houston 2020: America’s Boom Town – An Extreme Close Up  by Ralph Bivins. Available on Amazon 

File: Austin. Amazon Warehouse Sold to REIT

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