Amazon Plans to Close a Baltimore Warehouse Belonging to Starwood REIT

September 1, 2022 | James Sprow | Blue Vault

A news story in BISNOW reported on August 31 that Amazon plans to layoff employees at two facilities in the Baltimore area. One delivery station in Essex, where 163 people work, will be subject to the layoffs to take effect on October 25.

Starwood REIT, a continuously offered NAV REIT with over $26 billion in total assets as of June 30, 2022, lists the property in their commercial real estate holdings as one building of four in their Marshfield Industrial Portfolio, a portfolio acquired in October 2020 for $161 million.

The BISNOW article treats the building, one of four in the “Marshfield Portfolio,” as if it is the total portfolio, which sold in $161 million. The property at 8411 Kelso Drive is a 272,500 SF asset, but the four-building portfolio that sold for $161 million in 2020 comprises a total of over 1.3 million SF. 

As of December 31, 2021, the last financial report by Starwood REIT that lists all their 389 properties as of that date, showed the four buildings in the Marshfield Portfolio in Baltimore as 100% occupied. The terms of the Amazon lease at the warehouse they are closing are not reported. Amazon may be committed to making lease payments at least until a new tenant is found. Losing one tenant currently occupying about 20% of the portfolio shouldn’t significantly impact Starwood REIT, especially if a new tenant is found quickly.

Sources:  SEC, BISNOW