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Progress Capital arranges $18M loan for latest Amazon fulfillment center

Asset Realty & Construction Group has secured an $18 million acquisition loan for the purchase of a former Sam’s Club warehouse it is redeveloping as an Amazon fulfillment center.

Kathy Anderson of Progress Capital arranged the financing for the property located at 81 International Drive in Budd Lake, NJ. Lakeland Bank provided the funding at a 3.10 percent fixed rate for 10 years.

KATHY ANDERSON

The new 132,000 s/f facility will power Amazon’s delivery capabilities to support the growing volume of customer orders in the Morris County area.  The Budd Lake station is one of 14 to open in New Jersey. 

The facility does not service walk-in customers but rather will have carriers pick up packages and deliver them for the “last mile”.  The delivery station brings hundreds of full-time and part-time jobs to the community. 

The demand for Amazon delivery services from its e-commerce site has skyrocketed during the COVID-19 pandemic as consumers sought ways to get goods without leaving their homes.  However, once the package left one of the warehouses, the company had little control over the quality of the last mile of service. 

Therefore, in order to eliminate any and all issues relating to customer service, the company invested heavily in developing its own delivery channels as a way to ensure better quality control right to consumers’ doorsteps.

Since the outbreak of the coronavirus, Amazon has closed deals for 14 delivery stations in northern New Jersey and has two massive projects underway in the Bronx and Queens.

The company is converting a 1M s/f former papermill on Grand Avenue in Queens into a 250,000 s/f delivery station with a multi-level parking structure. The new facility is a joint venture between RXR Realty and Los Angeles-based LBA Realty.

It is has leased a 200,000 s/f former Jet.com space on Bronx River Avenue in the Bronx for another delivery station.

The distribution deals come on top of a 335,000 s/f lease at Hudson Yards where Amazon plans to open an NYC office hub.

“Amazon Logistics has signed various leases in an effort to open 14 delivery stations in New Jersey in 2020.  We are excited to continue to invest in the tri-state area with new delivery stations that will provide efficient delivery for customers, and create thousands of job opportunities for the talented workforce,” said an Amazon spokeswoman.

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