A friend in the real estate business notes reports in the Daily Record on legal filings related to the development of the massive Amazon distribution center at the Little Rock Port.
Documents on file in Pulaski County show that Amazon sold the 80 acres it obtained at the port to a subsidiary of the Fortress Investment Group of New York for $3.2 million, precisely what it had paid the port for the land.
Fortress put a $1.68 billion (yes, billion) mortgage on the property, through Goldman Sachs financing. Amazon lease payments are pledged to the mortgage. The amount of the payments under the 20-year lease wasn’t included in documents on file, but the lease starts Sept. 13, 2021, or earlier if the building is completed. That gives some idea of when jobs may begin.
A $1.6 billion facility, if given that full appraised value by the assessor, would eventually produce $19 million in annual property taxes, about two-thirds of it for the Pulaski County School District, in which the facility sits.
A reader raises a question I can’t answer, whether the mortgage covers more Amazon projects. Goldman Sachs recently announced a $2 billion security deal covering 11 Amazon facilities, according to the American Banker. The documents I have –the land sale deed, the lease linked above, the mortgage and also the lease assignment — refer only to property in Little Rock. The facility will contain 3 million square feet of space (four levels of an 850,000-square-foot footprint) and will be outfitted to accommodate extensive use of robots to move packages.