AMB Property Expands

AMB Property Expands

Copyright 2004, Traffic World, Inc.

Buoyed by the recovery in manufacturing, AMB Property, the San Francisco-based aviation real estate developer, acquired eight properties in the second quarter. The facilities - in Amsterdam, New York, New Jersey, Miami and Texas - collectively total 2.7 million square feet and are valued at $301.5 million.

The acquisitions underscore the strength of the economic recovery. AMB notes that the Industrial Production Index is now in its 11th consecutive month of expansion. "The combination of increased levels of business spending and the historically low inventory-to-sales ratio appear to be translating into increased demand for industrial real estate," said Hamid R. Moghadam, chairman and CEO.

In Amsterdam, AMB finished development of a 183,900 square foot logistics center costing $23.4 million. The building, adjacent to Schiphol Airport, is leased to a global computer chip manufacturer. With this addition to its portfolio, AMB now has buildings in Europe''s four largest cargo markets.

Also during the second quarter, AMB completed the 37-building purchase of the IAC portfolio at seven U.S. airports. That includes facilities at New York''s JFK Airport and Houston''s George Bush Intercontinental Airport. The $182.3 million purchase of five buildings during the second quarter finished that deal.

The JFK center includes four buildings next to the airport that total 527,000 square feet. Tenants include BAX Global, Exel Global Logistics, Hankyu International Transport, Kintetsu World Express and Nippon Express USA.

In other transactions:

-- In Houston, AMB now owns the new 410,000-square-foot distribution center that was built for Panalpina.

-- In New Jersey, AMB bought three complexes in the state''s northern reaches. With the acquisitions, AMB now owns 1 million more square feet of facility space in the region.

-- In Austin, Texas, AMB bought part of the TechRidge Corporate Center for $15.6 million. The 209,000-foot facility there is leased to companies including Ryder and APL.

-- In Miami, AMB bought the Cobia Distribution Center for $9 million. The property has access to the ports of Miami and Everglades and to Miami International Airport.