Author: Eric Walz
Electric truck maker Rivian is already making plans for its expansion, though the corporate has solely delivered round 1,000 electrical pickups thus far. Most not too long ago Rivian made headlines when its introduced that its second U.S. manufacturing facility will likely be constructed in Georgia. Now the corporate is leasing a huge distribution middle in South Louisville, KY.
Rivian signed a seven yr lease on the ability after it was bought by actual property agency JLL Income Property Trust for $39.5 million then leased to the electrical automobile maker. JLL Income Property Trust is an institutionally managed every day Real Estate Investment Trust (REIT) that has over $5.9 billion in portfolio belongings.
The seven yr Rivian lease consists of annual hire will increase of two.75 %.
The lease deal was first reported by native information outlet Courier Journal.
Construction on the South Louisville facility was accomplished in Aug 2021. The property consists of cross docking, 36-foot clear heights and vitality environment friendly LED lighting. The location is a quick drive from main distribution hubs together with UPS Worldport 5.2 million sq. toes airport hub, UPS Centennial Hub, which is likely one of the largest UPS sorting services in the U.S. and Louisville International Airport.
The web site can be about 100 miles away from Amazon’s new $1.5 billion Air Hub in Cincinnati. The e-commerce big can be a backer of Rivian and can use the corporate’s electrical supply autos in its supply fleet. Amazon ordered 100,000 supply vans from Rivian.
In December, Rivian announced that Amazon Web Services Inc. will be its preferred cloud provider to ship related companies, facilitate over-the-air software program updates, and handle fleets of related autos.
“South Louisville Distribution Center is a superb match inside our geographically diversified industrial portfolio given its location close to irreplaceable transportation infrastructure, state-of-the-artwork development and the constructive dynamics of Louisville’s industrial market,” mentioned Allan Swaringen, JLL Income Property Trust President and CEO in a assertion.
Last month, Rivian announced it will build its second factory in Georgia in a deal that native officers hope will make the state a chief in the following era of the automotive business.
The manufacturing facility web site in Georgia consists of an space encompassing 1,978 acres marketed because the “East Atlanta Megasite.” It’s one of many largest accessible industrial websites in Georgia, in line with state officers. It’s additionally in proximity to rail traces, which can be utilized by Rivian to ship supplies to and from the manufacturing facility.
Its not clear what Rivian intends to do with the distribution web site in South Louisville, however its proximity to main highways means it would grow to be a automobile staging space earlier than delivery autos to prospects in the japanese components of the U.S., or used for different logistics operations.
In November, Rivian launched its extremely anticipated IPO and raised $14 billion, making it the largest IPO in the U.S. since 2014. The firm’s inventory trades on the NASDAQ below the inventory image “RIVN”.
Rivian’s market cap is at the moment $77.8 billion, making the corporate virtually as worthwhile as U.S. automakers General Motors and Ford.
Rivian’s first automobile is the R1T electrical pickup truck, which can compete with Ford’s greatest-promoting F-150, together with the electrical Lightning model that can hit the market later this yr.
Rivian can be backed by Ford Motor Co.
Rivian’s totally-electrical R1T pickup and R1S SUV.
In an amended SEC submitting on Nov 5, 2021 forward of its IPO, Rivian said it had had approximately 55,400 R1T pickups and R1S SUVs pre-orders in the U.S. and Canada as of Oct 31, 2021. Each buyer paid a totally refundable deposit of $1,000 to order their Rivian automobile.
The autos are being produced at Rivian’s EV factory in Normal, Illinois, which is at the moment geared up to provide a complete of 150,000 autos yearly, distributed between the R1T platform for Rivian pickup and SUV, in addition to the RCV platform, which will likely be used to provide electrical supply autos (EDVs) for Amazon.
The present annual capability for Rivian’s two EV platforms is roughly 65,000 and 85,000 autos, in line with the corporate, so Rivian might want to broaden its manufacturing footprint to fulfill demand.