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Amazon-Leased Industrial Portfolio Lands $1.2B Refinancing

An Amazon fulfillment center

Preylock, which has one of the highest concentrations of Amazon-leased space among industrial landlords, secured a billion-dollar refinancing package for a distribution center portfolio that spans 10 states. 

Los Angeles-based Preylock arranged $1.2B in refinancing for its 12-building portfolio fully leased to AmazonCoStar reported. The financing comes after the e-commerce platform demonstrated a strong second quarter in its latest earnings report.

Goldman Sachs will originate a $1.04B loan that rolls into a new commercial mortgage-backed securities loan, which is expected to close this month. The loan is backed by 12M SF built for Amazon over the past two years. 

The refinancing will also back a $581M CMBS loan a partnership between Preylock and Bahrain-based GFH Financial Group secured for eight of the buildings in the portfolio spanning 6M SF in Indiana, Pennsylvania, Ohio, Louisiana, North Dakota, New Mexico, Arkansas and Alabama, GlobeSt reported

Along with loan proceeds, $25M in equity contributed by Preylock and $150M in mezzanine debt from Goldman Sachs will help refinance the existing debt, CoStar reported.

Amazon performed surprisingly well in the second quarter given a slowdown in e-commerce following the pandemic spike. Overall revenue grew by 11% to $134B, The Wall Street Journal reported. Following its earnings report, Amazon's shares bumped up by 10% in after-hours trading.

In 2021, Preylock and GFH acquired a 14-building, 11M SF portfolio for $2B. It consisted of the 12 buildings that were refinanced and two other buildings, all fully leased by Amazon.