Amazon Outdoor Storage Site Secures $20M Refi

Standard Insurance Company provided the loan in eastern L.A. County

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Despite the discouraging year for commercial real estate lending, investors can still look to Amazon (AMZN) to deliver a safe bet. 

The owners of a 7-acre Amazon-leased property with outdoor storage space and a 27,350-square-foot industrial building in Southern California secured $20 million in refinancing. Records show Standard Insurance Company provided the loan to an entity that shares an address with FB Logistics & Storage.

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The site is at 4350 Temple City Boulevard, across the street from one of Amazon’s distribution facilities in El Monte, Calif., in the San Gabriel Valley in eastern Los Angeles County. L.A.-based Bandon Capital Advisors arranged and announced the financing Thursday but did not disclose the name of the borrower, the lender or the tenant, other than to describe it as a Fortune 500 company.

The refinancing highlights the growing popularity of industrial outdoor storage (IOS) assets, particularly in strong industrial markets like L.A., and also underscores the relevance of life companies in the tight lending environment, according to Bryan Kenny, co-founder and president at Bandon Capital.

“Demand for IOS properties is increasing as investors seek assets that are both protected from downside risk and offer the potential for rising value in the current uncertain economic climate,” Kenny said in a statement. “IOS has been commanding considerable attention since the explosion of e-commerce during the pandemic. With logistics companies seeking last-mile delivery solutions, demand is increasing for industrial properties with excess land.”

Los Angeles has the second-largest industrial real estate transaction volume in the nation, behind only the Inland Empire to the east, accounting for $3.55 billion in deals in the first 10 months of the year, according to CommercialEdge’s most recent market report. L.A. County is also the second-most-expensive property for buyers, with assets selling for $314 per square foot. 

Gregory Cornfield can be reached at gcornfield@commercialobserver.com.