Amazon Continues to Expand Land Holdings and Plans for Expansion, Buys Vacant Santa Clara Property for $51.8MM

By Meghan Hall

Amazon is continuing to plan well-ahead of its needs, closing on its second land deal in recent weeks. This week, Amazon Web Services, a subsidiary, purchased seven acres in Santa Clara for $51.8 million. According to The Mercury News, who first reported the acquisition, the firm paid all-cash in the deal.

The property is located at 2315 Mission College Blvd. Public records indicate that the seller is an entity associated with IPI Partners. IPI turned a quick profit on the property; the firm only purchased the land in June of 2021. At the time, it paid $47.107 million.

The asset is just adjacent to another property owned by IPI, located at 2305 Mission College Blvd. The property is developed with a 358,000 square foot office and research and development building. IPI originally purchased the property in January of 2020 for $101.4 million and subsequently leased it to AWS for 15 years. Amazon also has the option to buy the property in the future.

At the end of December, Amazon also purchased land in Gilroy for $31.2 million. The acreage is located at 1445 Pacheco Pass Highway and is known as Rancho San Ysidro. An executive listing summary obtained by The Registry shows that the land totals 60 acres. It was originally on the market for $26.136 million, or about $435,600 per acre.

In September of 2021, the firm purchased undeveloped land in Pleasanton, Calif., for $75 million; Amazon plans to construct between 201,000 square feet to 520,000 square feet at the site. The project could operate either as a sorting station or delivery station.

On a broader note, Amazon has announced plans to 125,000 employees throughout the United States as it expands its logistics footprint, according to a fall statement from the company. The company also plans to hire 40,000 corporate and tech-oriented jobs. Over the course of the year, Amazon opened 250 new fulfillment centers, sortation hubs, regions air hubs and delivery stations. In September of 2021, it opened 100 new buildings alone and has hired more than 450,000 since the beginning of the pandemic.

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