Amazon Warehouse Portfolio to Land $1.1B Refi
By Greg Cornfield August 9, 2023 4:50 pm
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The king of e-commerce delivers again.
Los Angeles-based Preylock Real Estate Holdings is set to land a $1.1 billion loan package to refinance a portfolio of Amazon (AMZN) warehouses in 10 states, The Real Deal reported, citing Kroll Bond Rating Agency and an unnamed source.
The behemoth commercial mortgage-backed securities (CMBS) deal is supported by 12 warehouses with 8.9 million square feet that are fully leased to Amazon for an average term of about 14 years.
Goldman Sachs (GS) will provide $1 billion in non-recourse financing with a fixed interest rate of 5.38 percent. Preylock is also working to close a $150 million mezzanine loan with another unnamed lender.
Last summer, Goldman Sachs provided a $581 million floating-rate, interest-only loan on eight of the Amazon properties, per TRD.
Underscoring the value in a premier tenant like Amazon, industrial investment sales have calmed throughout the country, reaching $21.2 billion in the first half of the year. That’s a significant decline from the $55 billion recorded during the same period in 2022, according to data from CommercialEdge.
Gregory Cornfield can be reached at gcornfield@commercialobserver.com.
