Amazon: Globally Recognized Tenant – Fortune #2 Company – Revenues Over $280 Billion – The building is leased to Amazon (NASDAQ: AMZN), an American multinational technology company based in Seattle, Washington, which focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence. It is considered one of the Big Four companies in the U.S. information technology industry, along with Google, Apple, and Facebook. The company has been referred to as “one of the most influential economic and cultural forces in the world”, as well as the world’s most valuable brand. The company reported revenues of $280.5 billion in 2019.
Below Market Lease – Strong Corporate Guarantee – Annual Rent Increases – Amazon commenced its 65-month lease in October 2019, which features annual rent increases of 2% through the Primary Term as well as the (2) 5-year renewal options. The triple-net (NNN) lease requires the tenant to reimburse for taxes, insurance, and the maintenance of the building. The landlord has minimal maintenance responsibilities on the asset, providing an investor with a true passive investment grade credit income stream.
Significant Capital Improvements Made by Amazon (Estimated $12M-$15M) – Strong Commitment to the Site – In Spring and Summer 2019, Amazon completed significant capital improvements into the building and site, estimated to be between $12M and $15M. The improvements included an office expansion of 15,000 square feet of new office, a newly constructed 3,500-square-foot training room, new concrete ramps, new LED lights, upgrades to the power, new drive-in bay doors, a new roof (25-year warranty), and new air conditioning units (complete list to be provided by Broker).
Strategic Location for Last Mile Fulfillment – 3 Miles from Municipal Airport – Minutes to Interstates 80 & 380 – The property is located within 400 miles or a 7-hour drive froom ten of the largest population bases in the country. Additionally, as a last-mile fulfillment facility delivering to eastern Iowa, western Illinois, and parts of Wisconsin, this site is ideally located just 8 miles from the on/off ramp to Interstate 80, at the interchange with Interstate 380, providing excellent access to distribution arteries throughout the region.
Large Site Offers Full-Circulation Truck Access – Streamlined Staging/Loading Process – Expansive Parking – The Tenant’s distribution process benefits from the expansive parking, streamlined van staging & loading process, and full-circulation truck access. The large 37.49-acre site on two parcels offers future expansion capability.
Located in Iowa City, IA – Within Iowa City & Cedar Rapids CSA (Pop: 450,000) – Proximity to University of Iowa, One of the Area’s Largest Employers – The Amazon building is located in Iowa City, Iowa, approximately 30 miles south of Cedar Rapids. Iowa City is the fifth-largest city in Iowa with an estimated population of 75,130 (U.S. Census Bureau 2019). It is located at the center of the Iowa City Metropolitan Statistical Area (MSA), which encompasses Johnson and Washington counties and has a population of over 173,000.
Iowa City is home to the University of Iowa, a public research university. It is the second-largest university in the state, employing nearly two thousand people with an enrollment of over thirty-thousand students. This creates a large, educated workforce for surrounding businesses.