By Jon Peterson
Victory Station LLC has inked a deal with Amazon to take all of the 250,000 square foot Victory Station industrial property in the county of Sonoma located at 22810 Eight Street East. This transaction will represent Amazon’s first lease that it has signed for a property located in Sonoma County.
Amazon is planning to use the space as a delivery station and also as an e-commerce and a last mile warehouse. The expectation is that the company will be able to occupy the location in the fall of this year and be ready for the 2020 holiday season. According to sources familiar with the location and the asset, Amazon is planning to invest roughly $15 million of its own capital on the space to get it ready.
The lease that Amazon has signed is for approximately 10 years. While terms of the lease were not disclosed, when the space was available in 2019, the asking rent was posted at $10.20 per square foot per year.
The ownership of Victory Station was represented in the lease by Cushman & Wakefield. The listing agents that worked on the deal included Brooks Pedder, an executive managing director in the company’s Walnut Creek office, and Steven Leonard, managing director in the Larkspur office. Amazon worked on the lease through JLL.
The property is a brand new facility that was completed in 2019. It represents one of a very limited number of new industrial development projects that have been approved in Sonoma County in the past several years. Victory Station LLC has Jose McNeill as its managing member. The equity capital for this project was supplied by Washington Capital Management and its partners. The 19 acres for the property was purchased in 2018 for $3.7 million, according to industry sources.