Amazon | Below Market Rent
7200 Chavenelle Road, Dubuque, IA 52002
Price: $11,210,000
Status: Hidden
Cap Rate: 5.00%
Year Built: 2007 (Ren. 2022)
NOI: $560,511
Lot Size: 13.91 acres
Price Per Foot: $92
Lease Type: Double-Net (NN)
Remaining Term: 4+ Years
GLA: 132225 sqft
Property Intro
Lee & Associates and CBRE are pleased to exclusively offer for sale the fee simple interest (land & building) in an Amazon Distribution Facility located in Dubuque, IA (the “Property”). Built in 2007 and occupied by Amazon in 2022, the property consists of approximately 120,800-square-foot building that sits on an approximately 13.91 acre parcel. The building features (3) drive-in doors, (11) dock doors and expansive parking at this facility.
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 $457 billion in 2021.
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 $457 billion in 2021.
investment highlights
INVESTMENT GRADE TENANT
- Amazon.com (S&P AA) is the largest e-commerce platform with 5% of all U.S. retail spending and 50% market share of
the U.S. e-commerce market. - Tenant Revenue in 2021:
o $469.8 Billion in Revenue
o $33.4 Billion in Net Income
SIGNIFICANT TENANT INVESTMENT AND BELOW MARKET RENT
- Amazon completed significant capital improvements to the building and site in 2021/2022.
- Amazon’s total cost of improvements estimated to be around $16 Million.
- Improvements include replacement of all HVAC units, new office areas throughout and replacing and expanding the
parking lot. - Amazon is currently paying $4.56 psf, while market rents for similar logistics space are leasing at $5.76 psf (per Costar).
CRITICAL ECOMMERCE LAST MILE FACILITY – STRATEGICALLY LOCATED
- Strategically located in Dubuque to facilitate deliveries to Amazon Prime Customers in Northeast Iowa. Amazon
expects to process approximately 25,000 packages per day from this facility. - This Dubuque Facility is the only delivery station in Iowa for 85 miles; the next closest delivery station is in Iowa City, IA.
PASSIVE NN LEASE STRUCTURE WITH 4+ YEARS REMAINING PLUS OPTIONS
- Minimal landlord responsibilities, limited to roof and structural repair, replacement, and maintenance.
- Approximately 4+ years of lease term remaining, lease commenced in August 2021.
- The lease contains 1.75% annual rental increases throughout the initial term and the 2- 5-year options.
listing agents
