Saxum Real Estate is pleased to announce the completed recapitalization of a six-property, 1.5 million-square-foot, Class A cold storage portfolio (the “Portfolio”) with its equity capital partner, BGO, through three separate transactions. Each of the newly built cold storage assets feature 50-foot clear heights, ample dock space and dock doors to expedite distribution and container handling services, and convertible rooms at each facility with temperature capabilities between -10 to 38 F. The assets are located in major distribution hubs with significant unfulfilled cold storage demand including Phoenix (AZ), Atlanta (GA), Reno (NV), Hazleton (PA), and Dallas-Fort Worth (TX). A seventh facility in Atlanta is expected to close shortly which will bring the total portfolio to nearly 1.7 million square feet.
The Portfolio occupancy is anchored by a leading cold storage operator, Arcadia Cold Storage & Logistics, which has leased approximately 81% of the 1.7 million square foot portfolio. Established in 2021, Arcadia Cold specializes in providing unsurpassed third-party handling, storage, distribution, and value-added services to the food industry through its modern cold storage warehouse development expertise and proven operational “know-how.”
The transaction aligns one of most active cold storage developers in the country, Saxum Real Estate, with one of the largest Cold Chain Logistics real estate investors in the world, BGO. Saxum’s robust cold storage pipeline includes an active project in Jacksonville and planned 2024 projects in Charleston, Chicago, Northwest Indiana, and Houston.
Permanent debt financing was provided for the Atlanta, Dallas-Fort Worth, and Hazleton assets by PGIM Real Estate.
