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topicnews · October 27, 2024

How much did Amazon pay for the Daytona property? It’s a record

How much did Amazon pay for the Daytona property? It’s a record

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DAYTONA BEACH – Amazon has two distribution centers in Volusia County, with two more expected to open in early 2025. What the general public may not know is that the company typically rents, rather than owns, its facilities.

That changed dramatically this month when the Seattle-based e-commerce giant spent nearly $393.9 million to acquire its yet-to-be-opened, five-story, 2.8 million-square-foot robotics fulfillment store at 2519 Bellevue Ave. in Daytona Beach.

The seller was Dallas, Texas-based developer Hillwood Communities, operating under the name “Daytona 634 Development LLC,” according to a copy of the deed record obtained by the Daytona Beach News-Journal late Friday from Brandon Logan, the principal from the Volusia County Tax Commission.

What have been Volusia’s record sales so far?

It is the largest real estate sale in Volusia County history, surpassing the previous record of $123 million raised by Virginia-based Capital Square 1031 for the 599-unit, 55-and-older manufactured home community The Falls on Clyde Morris Boulevard in Ormond Beach paid in December 2020, according to Volusia County property records.

When did Amazon expand here?

Amazon opened its first distribution center in Volusia County in September 2019 when the company opened its 66,000-square-foot last-mile delivery station at 2400 Mason Ave. in Daytona Beach. This property is owned by Fortress Investment Group of New York, New York.

E-commerce’s second distribution center opened in Deltona in September 2020: the 1.4 million-square-foot Amazon “First Mile” fulfillment center at 2600 N. Normandy Blvd., on the east side of Interstate 4. This property is freehold from Clarion Partners based in Dallas, Texas.

A second completed but not yet opened Amazon facility in Deltona, the 984,960-square-foot pre-first-mile fulfillment center, is located across the street in the I-4 Logistics Park at 2501 N. Normandy Blvd. This Amazon building is owned by San Antonio, Texas-based Affinius Capital, which was formerly known as USAA Real Estate Company, the real estate investment arm of the USAA credit union for U.S. military personnel and their families.

The Daytona Beach robotics fulfillment center was developed by Hillwood on behalf of Amazon, which acquired the property from NASCAR in December 2021 for $13.7 million.

Both the robotics fulfillment center and the pre-mile fulfillment center appear to be completed or near completion.

Amazon typically doesn’t open new distribution locations during the holiday shopping season, meaning the two new distribution locations in Volusia County won’t open until early 2025.

Why are so many facilities needed?

Amazon’s goal in operating so many distribution facilities in Volusia County is to improve its ability to offer same-day and next-day deliveries of customers’ online purchases.

Volusia County is considered a good location for logistics services due to its prime location at the intersection of Interstates 4 and 95, making deliveries easy along Florida’s east coast as well as to customers in Central Florida.

How many people are employed there?

Amazon created several hundred jobs when it opened its last-mile delivery station in Daytona Beach and added at least 1,500 more when it opened its first-mile fulfillment center in Deltona. The company has said it plans to add 1,000 more jobs with the opening of its robotics fulfillment center in Daytona Beach, but has not said how many it expects to employ at the pre-First Mile fulfillment center in Deltona.

News reports about new Amazon pre-First Mile fulfillment centers elsewhere in the country suggest the second facility in Deltona could employ an additional 1,000 people.

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