Chicago-based real estate investment firm Bridge Development Partners LLC has purchased a 307,000-square-foot, two-building, cold storage facility at the corner of 26th Street and Western Avenue in Chicago.
This is Bridge’s third investment with Akard Street Partners, an investment partnership operated by Dallas-based Hunt Realty Investments Inc., since the forming of their joint venture in 2012.
The first of the two properties, 2635 S. Western Ave., was converted to freezer-cooler space in 2004. The second, 2658 S. Leavitt St., is a 52,000-square-foot, state-of-the-art building completed in 2008. The facility is strategically situated in an infill location that is dominated by food users whose clients operate in the central business district of Chicago. The location provides tenants access to the main distribution routes of the Midwest as well as proximity to downtown Chicago.
“This acquisition allows us to purchase an ideally located, state-of-the-art cold storage warehouse/distribution facility with strong in-place cash flow at a price well below replacement cost,” said Tony Pricco, a principal for Bridge. “Our favorable cost basis together with solid market fundamentals for this product type indicate continually strong tenant demand for this asset. It’s an ideal addition to our portfolio because of its current cash flow and long-term growth potential.”
Bridge’s experience in cold storage facility investment dates back to 2005 with its first acquisition in the Chicago area.