Amazon To Close Its First Last-Mile Delivery Center In The Bronx
Amazon's nationwide pullback in its distribution network has hit New York City.
An entity called IKE Logistics LLC filed a notice with the New York State Department of Labor last week, disclosing it plans to lay off 155 workers in a closure of the warehouse at 1300 Viele Ave. The reason for the closure, according to the filing, is the “termination of IKE Logistics LLC’s Delivery Services Partner Program Agreement with Amazon Logistics.”
The closure is scheduled for Dec. 15, typically the time of year when Amazon is in hiring mode, increasing its capacity for delivery. IKE Logistics has operated out of the 116K SF warehouse in the Hunts Point neighborhood of the Bronx since Amazon opened the facility in 2019.
The company, which received a $1.17M Paycheck Protection Program loan in 2020, didn't immediately respond to Bisnow’s request for comment. The property was Amazon’s first last-mile distribution center in the Bronx.
An affiliate of private investor Heidi Holterbosch acquired the property shortly before the deal with Amazon became public, according to property records. The property has previously been owned by MRP Realty and AEW Capital Management, which paid $25.6M for it in 2017, The Real Deal reported.
The pair reportedly spent approximately $6M renovating the property before selling it to Holterbosch’s shell company, Hunts Point WH LLC.
Amazon spokesperson Maria Boschetti told Bisnow in a statement that the decision to close the facility came from the delivery service provider failing to meet the company’s standards.
“We maintain high standards for [our] partners and regularly audit to ensure they provide a safe work environment for their teams, meet our supplier code of conduct, and are in compliance with applicable laws,” said Boschetti, adding that the company provides additional support when its delivery contractors are not reaching expectations.
“Unfortunately, there are some rare cases when a DSP fails to improve — even with that support — and we have to terminate our relationship with them for the good of our customers and other partners."
Amazon didn't respond to questions about whether it is seeking an alternative location or contractor in the Bronx, but it has opened three other facilities in the borough since 2020.
The company leased 81K SF at 511 Barry St., also in Hunts Point, and a 205K SF warehouse at 1055 Bronx River Ave., as well as purchasing the 366K SF warehouse at 1500 Bassett Ave. in Morris Park, Commercial Observer reported.
The company has recently shuttered warehouses in other U.S. cities, including closing two Maryland facilities last month and laying off 353 employees. These closures also come on the heels of reports that Amazon could close or sublease as much as 30M SF of warehouse space across the country.