SEATTLE-Two separate deals have been signed to develop fulfillment centers for Amazon in California. USAA Real Estate Co. will develop an approximately one-million-square-foot fulfillment center in Patterson just north of Sperry Road, within the West Ridge Business Park. Meanwhile, the joint venture of Hillwood and Clarion Partners began construction earlier this year on a facility in San Bernardino that will become an Amazon fulfillment center upon completion.
“We’re pleased to be making this investment in Patterson and look forward to Amazon moving in when the facility is completed,” says USAA chairman and CEO Pat Duncan in a statement. “We appreciate the support of local and state leaders throughout this project, and USAA is excited about being a part of the community.”
Amazon will not take occupancy of the Patterson property facility until second-quarter 2013. USAA could not be reached by GlobeSt.com before deadline to discuss projected construction costs, when construction will begin or the nature of this submarket.
“We appreciate USAA Real Estate Co.’s hard work, the support from Governor Brown and state and local officials, and we look forward to creating hundreds of full-time jobs with benefits in Patterson when the facility begins shipping to customers in 2013,” says Dave Clark, VP, global customer fulfillment for Amazon.
The San Bernardino property, located on Central Ave. east of Tippecanoe Ave., is part of the AllianceCalifornia project in that city, on which GlobeSt.com has previously reported. Amazon is expected to take occupancy as early as this fall.
“We’ve been planning to develop this property for some time, and we’re thrilled that Amazon will be moving in after the facility is completed,” says John Magness, SVP of Hillwood and leader of the company’s Inland Empire office. “We appreciate all the support from the community, and we look forward to Amazon starting operations in San Bernardino.”
Magness also could not be reached by GlobeSt.com before deadline to discuss construction costs for the property.
“We are excited to be a part of this project, and we look forward to a long and successful relationship with Amazon and the community,” said Stacey Magee, SVP and regional manager for Clarion, in a statement.
USAA will continue to serve as the landlord for the Patterson facility. For the San Bernardino facility, Hillwood will serve as the developer, and the joint venture will serve as the landlord. USAA and the joint venture will lease their respective spaces to Golden State FC LLC once complete, and Golden State will operate the fulfillment centers for Amazon.
Locally, the office market has been heating up recently, due in part to Amazon’s activities. As GlobeSt.com previously reported, in April American Life Inc. completed phase one of its Home Place Center office and retail building here. At the time, Greg Steinhauer, COO of the firm, told GlobeSt.com that “Seattle’s office market is starting to fire on all cylinders again. Big CBD moves by Amazon and Nordstrom have fueled short-term confidence and office absorption is ramping up.”
Overall, Seattle’s CBD has bounced back stronger than most national office markets, thanks to continued job growth and our city’s diversified corporate base, Steinhauer added. “The Stadium District is a dynamic location and we’re confident Home Plate Center’s class A space has all the right qualities at the right time for Seattle.”
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
