Cole Makes Largest Industrial Deal in Tampa Bay

Cole Office & Industrial REIT (CCIT II), Inc., a Phoenix-based public, non-listed REIT formed in 2013, has purchased a 1.1-million-square-foot fulfillment center in Florida for $103.6 million, marking the largest industrial property sale in Tampa Bay history in terms of both size and value, according to Cushman & Wakefield data. The massive fulfillment center at 3350 Laurel Ridge Avenue in Ruskin, Florida was sold by San Antonio-based USAA Real Estate Co., which bought the land in 2013 from Minneapolis-based Ryan Companies U.S. Inc. for $14.63 million to develop the warehouse. Terms of the sale were not disclosed.

"The property's state-of-the-art features, outstanding location and limited competition made this an exceptional investment opportunity," said Mike Davis of Cushman & Wakefield, which represented the seller, USAA Real Estate Co. "We believe that it truly is the highest-quality industrial building in Central Florida." in 2013, county commissioners voted to waive half of Amazon’s property tax bill for the first seven years, or about $6.4 million in total, Tampa Bay Times reported.

USAA Real Estate Co., which works with Amazon in developing its distribution centers, signed a long-term lease with the internet giant for the warehouse that's responsible for picking, packing and shipping items for most orders to Florida, and created 2,500 new jobs in Ruskin. Since the Ruskin Amazon facility opened on Sept. 17, 2014, it has more than doubled its workforce, from 1,000 full-time employees to more than 2,500, said Chris Monnot, the general manager. A renovation of the center, which is the size equivalent of more than 28 football fields, was completed in October 2015. That project added new levels of work space, more conveyors and workstations, and made it larger in terms of cubic square footage than Amazon's other Florida facility in Lakeland.

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Hillwood and Clarion JV to Develop Amazon Fulfillment Center

Hillwood and Clarion Partners announced this week that it will partner in a joint venture to develop a 950,000 square foot facility as part of the AllianceCalifornia project that will serve as a fulfillment center for Amazon once completed later this year. The development in San Bernardino, California will be located on Central Avenue, east of Tippecanoe Avenue. Hillwood will serve as the developer for the project, while the JV will serve as the landlord for the facility, leasing space to Golden State FC LLC once the building is complete. Golden State will then operate the fulfillment center for Amazon. Meanwhile, USAA Real Estate Co. will develop a fulfillment center of about 1 million square feet in Patterson, a city along Interstate 5 in the Modesto metro area according to a CoStar report.

"We've been planning to develop this property for some time, and we're thrilled that Amazon will be moving in after the facility is completed," said John Magness, Senior Vice President, Hillwood and leader of Hillwood's Inland Empire office. "We appreciate all the support from the community, and we look forward to Amazon starting operations in San Bernardino."

"We are excited to be a part of this project and we look forward to a long and successful relationship with Amazon and the community," said Stacey Magee, Senior Vice President/Regional Manager for Clarion Partners.

"We appreciate Hillwood and Clarion's ongoing work and thank Governor Brown and state and local officials for their support, which will allow us to create more than 1,000 full time jobs with benefits in San Bernardino when the facility begins shipping to customers," said Dave Clark, Amazon vice president, global customer fulfillment.

For more news and information visit Blumberg Capital Partners.

One and Two Potomac Yard Sold for Nearly $250M

US Government Building Fund, LLC, a fund sponsored by USAA Real Estate Company, has purchase One and Two Potomac Yard in Crystal City, Virginia for almost $250 million according to a National Real Estate Investor article. The seller, Potomac Yard Holding Company, LLC, is owned by JP Morgan Strategic Properties Fund. "We are home to the federal government and have a strong regional economy, which is experiencing real job growth. Every investor should own here,” stated Bill Prutting Jr., senior vice president in CBRE’s capital markets institutional group, which arranged the sale, in an Oct. 1 press release announcing the sale of Potomac Yard.

The 621,774-square-foot, two-building office complex is located just miles from Washington, DC and is currently 90% leased to Federal Government agencies including the U.S. Army Corps of Engineers and the U.S. Agency for International Development, along with private sector tenant Thales, an international aerospace, defense and security contractor. One and Two Potomac began construction in 2004, completed in 2006, and was the first project to achieve LEED New Construction Gold recognition in the state of Virginia and remains the only LEED Gold certified and Energy Star rated property in Crystal City today.

For more news and information visit Blumberg Capital Partners.