VICTORVILLE – Mirae Asset Global Investments, a South Korean financial services group, announced June 7, the purchase of a 1.16 million-square-foot industrial portfolio including the Victorville Amazon Last Mile Delivery facility, for $520 million. According to Newmark Research, industrial remains the top-performing property type in U.S. commercial real estate in terms of total returns and rental growth with volume up 50% year-over-year to nearly $34 billion during the first quarter of 2022.
The acquired portfolio totals eight buildings that are fully triple-net-leased to Amazon, located in cities across California and Utah. Assets that recently closed in California’s Inland Empire include a 126,000-square-foot facility in Victorville and a 112,000-square-foot facility in Riverside.
“This portfolio provides immediate scale in the warehouse distribution market, which is seeing record-breaking fundamentals,” said Newmark Co-Head of U.S. Capital Markets Kevin Shannon. “This portfolio was sold off-market, which in the industrial sector is a rare opportunity for the buyer.”
The Victorville “Last Mile Delivery station” opened in 2021 where a Walmart was previously housed. The company’s delivery stations are designed to “power the last mile of Amazon’s order fulfillment process.” According to Amazon, packages are transported to delivery stations from the company’s fulfillment and sortation centers, then loaded into vehicles for delivery to customers.
Major market pricing for well-located distribution and warehouse space has reached $333 per square foot, a record price as bidding has put upward pressure on pricing.
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