Hanley Investment Group arranges sale of single-tenant Amazon location in Chicago
Hanley Investment Group Real Estate Advisors has arranged the sale of a single-tenant Amazon Hub Locker+ location situated directly across the street from DePaul University in Chicago. Terms of the deal were not disclosed.
Hanley Investment Group executive vice presidents Kevin Fryman, Bill Asher and Jeff Lefko represented the seller, Westwood Financial of Los Angeles, California. The buyer was a private investor from Mexico, City, Mexico, and was represented by John Oks of Banco Santander International in Miami, Florida.
“This is a high-profile site in a Lincoln Park/Chicago location,” Asher. “Lincoln Park is one of the densest and most affluent neighborhoods in the country. There are 1 million residents within a five-mile radius and a $163,000 average household income within a one-mile radius.”
The 2,800-square-foot, Amazon-occupied property is located on the ground floor of a four-story, six-unit residential condominium building built in 2010 at the signalized intersection of Webster Avenue and Sheffield Avenue, 1001 W. Webster Avenue. Amazon Hub Locker+ offers a secure, staffed pickup and return location for Amazon packages.
“Properties that are considered an essential business with long-term leases located in dense, affluent neighborhoods are commanding top dollar in today’s market,” said Fryman. “We expect this trend of ‘flight to quality’ single-tenant investing to continue.”
Amazon started to grow its locker plan strategy in 2011 and now has locker locations in over 900 cities and towns including convenience stores, local groceries, apartment buildings and Whole Foods Market. Amazon is said to be planning significant growth of its locker program in the future.
So far during the COVID-19 pandemic, consumers spent more than $200 billion online with U.S. retailers, up 44.4 percent from $138.96 billion for the same quarter the prior year, according to retail figures recently published by the Commerce Department. That means more than $1 in every $5 spent came from orders placed on the web during the April-June period. Amazon-owned sales alone accounted for nearly a quarter of all U.S. ecommerce in Q2 and is responsible for just over a quarter of ecommerce growth from April through June.
In August, Amazon announced that it will invest more than $1.4 billion in new offices in Detroit, Dallas, Denver, New York, Phoenix and San Diego. The move is expected to create 3,500 jobs in total. The e-commerce giant is also reportedly in talks with mall owner Simon Property Group to turn anchor stores into distribution hubs.