Progress Capital Secures an $18M Loan for Amazon Last-Mile Distribution Center
For far too long, the old Sam’s Club warehouse located at 81 International Drive South sat empty since it shut its doors without notice in early 2018. Residents of Mount Olive Township will soon appreciate the improved property and shoppers can look forward to deliveries of everything from apparel to electronics, thanks to Dino Tomassetti Jr of Asset Realty & Construction Group who purchased the property which will soon be a bustling Amazon Last Mile Fulfillment Center.
Financing for the acquisition was arranged by Kathy Anderson of Progress Capital, who worked with Lakeland Bank. Due to the COVID-19 crisis and the number of unique challenges impacting the lending environment, Kathy had to manage a few obstacles before accomplishing a smooth and efficient closing.
Key loan terms include:
- $18,000,000 Acquisition Loan
- 3.10% Fixed for 10 Years
The 132,000 SF facility will power Amazon’s delivery capabilities to support the growing volume of customer orders in the Morris County area. The Budd Lake station is 1 of 14 to open in New Jersey. The facility does not service walk-in customers but rather will have carriers pick up packages and deliver them for the so-called “last mile”. The delivery station brings hundreds of full-time and part-time jobs to the community.
The demand for Amazon delivery services from its e-commerce site has skyrocketed during the COVID-19 pandemic as consumers sought ways to get 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. Therefore, in order to eliminate any and all issues relating to customer service, the company invested heavily in developing its own delivery channels as a way to ensure better quality control right to consumers’ doorsteps.
Progress Capital is a commercial real estate advisory firm with over $40 Billion in closed loans and $150 Million of directly funded bridge loans. With over 30 years of experience, Progress continues to provide value to clients by securing the best financing options available in the market. We get you to the closing table…Plain and Simple.
Asset Realty & Construction Group, Inc. is a fully integrated development company that owns self-storage, multifamily, retail, office and industrial properties throughout the Tri-State area and North Carolina.