AMB Acquiring 3.4M-SF Airport Industrial Portfolio for $481M

SAN FRANCISCO-AMB Property Corp. has agreed to acquire 3.4 million sf of industrial space in 37 airfreight buildings located adjacent to seven major US airports for $481 million, including $119 million in assumed debt. The stabilized cash capitalization rate on the transaction is estimated at 7.3%.

The seller is privately held International Airport Centers. The acquisition is being made in several phases. The first phase, comprised of 25 buildings, closed today for approximately $167 million. It includes buildings in New York, Los Angeles, Seattle, Miami, Houston, Boston and Charlotte, NC. Another $130 million closing is expected to close by the end of the year and the remaining $184 million is slated to close by the third quarter of 2004.

Approximately $63 million of the remaining 2003 closings will be purchased by an existing 80/20 AMB co-investment venture. AMB expects to finance the remaining acquisitions with newly issued long-term debt and proceeds from property dispositions.