Property that includes a building in which Amazon Inc. is leasing space for its delivery station in Grimes has once again been sold, Polk County real estate transaction records show.

The buyer, Kastner LLC of Los Angeles, paid $17.51 million for the property at 1301 S.E. Gateway Drive in Grimes, records show. Construction of the 109,786-square-foot Class A industrial warehouse space was completed in fall 2019 by Hubbell Realty Co., the project’s developer.

Hubbell sold the property in fall 2020 to DSM Industrial Property LP, an entity affiliated with Briar Capital Acquisitions LLC of New York City. The group bought the property and 1.8 acres of adjacent ground for $9.5 million.

Kastner LLC bought the distribution center property to complete a 1031 exchange, according to a news release. A 1031 exchange is a real estate investment tool that allows investors to exchange one investment property for another in order to defer capital gains or losses.

The buyer "was seeking an investment in the Midwest that provided higher yields compared to California," according to the release from Matthews Real Estate Investment Services, which brokered the all-cash acquisition.

"With the explosive growth of e-commerce and Amazon’s dominance in the market, this was a prime opportunity for [Kastner LLC] to receive a secure, profitable industrial asset in a growing submarket and business-friendly state," Alexander Harrold, first vice president and senior director at Matthews, said in a prepared statement.

Newmark Group represented the seller in the transaction, according to the release.

Several Des Moines-area facilities leased by Amazon have been sold in the past year. In February, property in Bondurant that includes the Amazon AR Sort Fulfillment Center was sold for $326.2 million, the highest sale price ever recorded in Polk County. In November 2021, property on which an Amazon sortation center is located was sold for $75.9 million. That property is also in Bondurant. In July 2021, a warehouse in Ankeny that houses another Amazon delivery station was sold for $22.1 million. That property also had been owned by Hubbell Realty Co.

The Grimes transaction was recorded May 10.

 

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