It’s not unusual for a firm to acquire a building occupied by Amazon, Marc Wulfraat, president of MWPVL International Inc., told the Business Record. MWPVL is a global supply chain and logistics consulting firm, based in Montreal, Canada, that follows Amazon.

“After … Amazon signs a long-term lease of 20 to 25 years, then quite often another firm acquires the building from the developer at a marked-up amount,” Wulfraat wrote in an email. “In these cases, the developer makes a tidy profit within a one-year time span. …

“Investors are willing to pay this premium because they perceive Amazon to be a safe bet – in other words Amazon won’t be going away any time soon,” Wulfraat wrote.

Hubbell Realty Co. completed construction of the 110,000-square-foot Grimes facility (pictured above) in fall 2019. In November 2019, Amazon announced it was opening a delivery station in Grimes. On Oct. 27, DSM Industrial Property LP paid $9.5 million to Hubbell Realty for the property and 1.8 acres of undeveloped ground at 1201 S.E. Mercantile Circle, north of the warehouse facility, real estate records show. The transaction was recorded on Nov. 13.

The building had been marketed for sale, a Hubbell spokeswoman said.

Hubbell took out a $7.5 million mortgage on the property at 1301 S.E. Gateway Drive in December 2018, according to Polk County recorder records. The mortgage is with Iowa Trust & Savings Bank, records show.

Before the pandemic, Amazon was a highly sought-after tenant, wrote Justin Lossner, a managing director of JLL’s Des Moines office. “COVID-19 has poured gasoline on the fire that has been fueling their growth.”

Polk County real estate records indicate DSM Industrial Property LP is affiliated with Briar Capital Acquisitions LLC, located in New York City. DSM Industrial obtained a $9.45 million mortgage on the property on Oct. 27, records show. The mortgage was with Peoples Bank.