Progress Capital arranges a $ 18 million loan for the newest Amazon shipping center

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Asset Realty & Construction Group has taken out a takeover loan of € 18 million.

Progress Capital’s Kathy Anderson arranged the financing of the property at 81 International Drive in Budd Lake, NJ. Lakeland Bank provided the financing at a fixed rate of 3.10 percent for 10 years.

KATHY ANDERSON

The new 132,000 s / f facility will bolster Amazon’s delivery capabilities to support the growing volume of customer orders in the Morris County area. Budd Lake Station is one of 14 in New Jersey.

The facility does not serve walk-in customers, but has parcels picked up by carriers and delivered for the “last mile”. The delivery station brings hundreds of full-time and part-time jobs to the community.

Demand for Amazon delivery services from its e-commerce site skyrocketed during the COVID-19 pandemic as consumers sought ways to receive goods without leaving their homes. However, once the package left one of the warehouses, the company had little control over the quality of the last mile of service.

So, in order to eliminate any problems related to customer service, the company invested heavily in developing its own delivery channels to ensure better quality control right on the consumer’s doorstep.

Since the coronavirus outbreak, Amazon has closed deals for 14 delivery stations in northern New Jersey and has two massive projects underway in the Bronx and Queens.

The company is converting a former 1 million s / f paper mill on Grand Avenue in Queens into a 250,000 s / f delivery station with a multi-storey car park. The new facility is a joint venture between RXR Realty and Los Angeles-based LBA Realty.

It has rented 200,000 s / f former Jet.com space on Bronx River Avenue in the Bronx for another delivery station.

The distribution agreements come in addition to a 335,000 s / f lease at Hudson Yards, where Amazon plans to open an office in NYC.

“Amazon Logistics has signed various rental agreements to open 14 delivery locations in New Jersey in 2020. We are excited to continue investing in the tri-state space with new delivery stations that enable efficient delivery to customers and thousands of job opportunities for talented workers, ”said an Amazon spokeswoman.

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