Amazon-Leased Property in Indiana Trades for $82M

October 13, 2019

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The 615,750-square-foot industrial building is net leased to the e-commerce giant for 15 years.

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An industrial property in Greenwood, Ind., that is net leased to Amazon has been acquired by Monmouth Real Estate Investment Corp., a New Jersey-based REIT, for $81.5 million. The 615,750-square-foot building opened last month as a fulfillment center and is leased to the e-commerce leader for 15 years.

Located at 1151 S. Graham Road in the Indianapolis suburb of Greenwood, the industrial facility is situated on approximately 78.6 acres off County Road 200 E., about a half-mile from Interstate 65. The packaging center hired more than 1,000 full-time employees for the new fulfillment center, which was previously slated to become a FedEx distribution hub before the company scrapped its plans in March 2018, according to the Associated Press.

Monmouth Real Estate President & CEO Michael Landy said in a statement that the industrial market in the Indianapolis metro area is one of the best in the country. Landy’s company has previously acquired industrial properties in the area, including a facility for ULTA Cosmetics and a FedEx Ground distribution center. The REIT, which owns roughly 23 million square feet of assets, specializes in acquiring net-leased industrial properties with a single, investment-grade tenant.

Amazon’s nationwide moves

Amazon has been beefing up its footprint in cities across the country lately, expanding leases at its locations in Chicago and Austin, Texas, and leasing an entire office building in Northern Virginia.

Last year, when cities were still pulling out all the stops to entice Amazon into building an HQ2 in their metros, the e-retailer named Indianapolis as one of the 20 finalists in its nationwide search. After initially announcing New York City and Crystal City, Va., as the new HQ2 locations, the company abruptly pulled out of its NYC plans, opting to stick with a campus in the D.C. metro area that will create 50,000 jobs and a smaller campus in Nashville, Tenn., that will employ 5,000 people.