Rare Amazon Property Hits The Market And Is Snapped Up
Amazon is spreading new facilities big and small throughout the Chicago metro area, and with the coronavirus pandemic boosting e-commerce to historic levels, investors are hungry for Amazon-branded properties. Los Angeles-based Westwood Financial just sold its single-tenant Amazon Hub Locker+ retail condominium at 1001 West Webster Ave. in Lincoln Park to a Mexico City-based private investor.
It is rare that such Amazon properties come up for sale, so investors are eager when it does happen, according to Hanley Investment Group Executive Vice President Kevin Fryman. Along with colleagues Bill Asher and Jeff Lefko, he represented Westwood, while the buyer was represented by John Oks of Banco Santander International in Miami.
“Properties that are considered an essential business with long-term leases located in dense, affluent neighborhoods are commanding top dollar in today’s market,” Fryman said. “We expect this trend of ‘flight to quality’ single-tenant investing to continue.”
Amazon Hub Locker+ outlets offer a staffed pickup and return location for Amazon packages. This nearly 3K SF property is on the ground floor of a four-story, six-unit residential condominium building built in 2010. The ground-floor condo was purchased for $2M in 2018, according to Cook County property records. The latest sale has not yet been recorded.
Amazon began opening Lockers nine years ago and now has locations in more than 900 cities and towns, typically inside convenience stores, local groceries, apartment buildings and Whole Foods Market. Amazon officials say they plan to keep growing their Locker program, and with e-commerce continuing to expand, it seems likely they will find customers.
During the height of the coronavirus pandemic from April to June, consumers spent more than $200B online with U.S. retailers, up 44.4% from almost $139B for the same quarter the prior year, according to the U.S. Commerce Department.