Affinius Obtains $67M for Amazon Facility in Sacramento
This is the owner's second property in the metro.
Affinius Capital has secured a $67.4 million loan for an Amazon-occupied industrial facility in Sacramento, Calif., according to Yardi Research Data.
Cadence Bank originated the loan, backed up by the 855,000-square-foot Amazon fulfillment and warehouse facility.
The 67-acre asset is at 4900 W. Elkhorn Blvd., near Sacramento International Airport and interstates 5 and 80. Downtown Sacramento is 11 miles away.
The property’s features include two grade-level doors, 64 dock-high doors, ESFR sprinklers, solar panels, 2,394 vehicle parking spots and ample trailer parking space.
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Back in 2018, Affinius Capital secured a $59 million loan from DekaBank for the property, one year after it came online. The company has only one other such asset in metro Sacramento, also occupied by Amazon.
Sacramento’s supply growth pressured vacancy
Sacramento’s industrial market vacancy clocked in at 7.7 percent in June, up 60 basis points since the first quarter, according to a Colliers report. This was a nine-year high for the market, largely pressured by the past two years’ strong supply growth and dwindling tenant demand. However, the same report shows that upcoming large leases will help with lowering vacancy.
One of the several large industrial completions in the metro was Amazon’s 629,186-square-foot fulfillment center in Rancho Cordova, Calif. Construction started last fall, with $107 million as total investment and Panattoni Development Inc. as general contractor, according to Sacramento Business Journal.
E-commerce continues to drive industrial demand
Despite tariffs and rising constructions costs, e-commerce is still among the strongest drivers of industrial demand, a recent Yardi Matrix report shows. Online shopping will continue to contribute to demand for warehouse and logistics, as it requires roughly three times more industrial space per sales dollar than traditional retail.
Earlier this year, Amazon unveiled plans for a $15 billion strategic expansion involving industrial sites in cities and rural areas. Targeting last-mile delivery hubs and larger fulfillment centers, the e-commerce giant is considering proposals from multiple capital partners.
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