Thursday, July 2, 2020

Amazon facilities in Kenosha sold for $176 million

Amazon's fulfillment center in Kenosha.

Amazon’s massive fulfillment center and neighboring distribution center in Kenosha have been acquired by a New York-based investment firm for $176 million, according to state records posted Wednesday.
Records indicate an affiliate of Kohlberg Kravis Roberts & Co. L.P. purchased the two buildings. The 1.1 million-square-foot fulfillment center, located at 3501 120th Ave., was sold for $119.2 million, and the neighboring 500,000-square-foot distribution facility at 11211 Burlington Road went for $56.8 million.
The seller is an affiliate of San Francisco-based Prologis.
The two properties have a combined assessed value of $134.8 million, according to Kenosha County records.
In a news release issued Wednesday, KKR announced it has acquired two industrial properties totaling 2.5 million square feet for roughly $260 million. The Kenosha facilities were not specifically mentioned, though the release notes one acquisition was in the Chicago market and the other in the Charlotte market. It further states the properties were fulfillment centers and 100% leased “to a high quality, investment grade tenancy on a long term basis.” The two properties were acquired through separate transactions with different sellers.
“We are excited to increase our footprint in these major distribution markets with the addition of two high-quality, stable assets,” Roger Morales, KKR partner and head of commercial real estate acquisitions in the Americas, said in the release. “We believe that the current environment will lead to continued acceleration of e-commerce penetration which drives demand for large modern distribution centers like the ones we are acquiring. Logistics real estate represents a growth opportunity as more and more U.S. consumers migrate to shopping online.”
A KKR spokesperson declined further comment.
Amazon’s presence in southeastern Wisconsin is widespread and growing. It is operating in or will soon operate in facilities located in Kenosha, YorkvilleSturtevantOak Creek and Wauwatosa.

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