Four Springs TEN31 Xchange buys Georgia Amazon sortation center via $58.9M DST

Four Springs TEN31 Xchange has acquired an Amazon sortation center in Appling, Ga. The 278,670-square-foot building backs FSX Industrial 36 DST, an offering the firm opened to accredited investors. The all-cash deal is priced at $58.93 million, IREI reported.

Amazon knows the building as AGS5. It is a class A cross-dock sortation center completed in 2021. The building sits on 46.38 acres in White Oak Business Park along Interstate 20. The lease runs to Amazon.com Services and carries a corporate guarantee from Amazon.com; the net lease is long-term and includes annual rent escalations.

For the sponsor, buying the building and raising the money are one move. FSXchange buys the asset, holds it in a Delaware statutory trust, and sells beneficial interests to accredited investors. That structure, the standard vehicle for 1031 exchanges, lets several buyers own fractions of a property too large for any one of them. The firm's prior industrial DST, FSX Industrial 35, launched in July. More DST offerings are planned through 2026.

AGS5 sits immediately adjacent to AGS1, Amazon's 2.7 million-square-foot multi-story fulfillment center. Together they anchor a logistics zone serving eastern Georgia and western South Carolina. In that setup, a cross-dock sortation center is the sorting point between the regional fulfillment hub and a network of last-mile delivery routes.

The deal concentrates risk in one tenant, and Amazon's corporate guarantee is the compensation. The guarantee shields the rent from local market swings, but the building's worth rests on that lease and Amazon's continued use of the asset. Investors are betting on one tenant's logistics network. The rent may be guaranteed; the building's value will still rise and fall with Amazon's decision to keep AGS5 in its network.