Saxum Real Estate’s newly recapitalized, 1.5 million-square-foot cold storage portfolio includes properties in Atlanta. — Courtesy: Saxum
By Joshua Burd
Saxum Real Estate has recapitalized a six-property, 1.5 million-square-foot portfolio of cold storage buildings under a newly completed partnership with a national investment firm.
The developer, which is based in Summit, said BGO is providing the infusion of equity for the collection of newly developed buildings in Phoenix, Atlanta and Dallas-Fort Worth regions, as well as Reno, Nevada, and Hazelton, Pennsylvania. A deal for a seventh facility in Atlanta that will bring the portfolio to nearly 1.7 million square feet is expected to close shortly.
PGIM Real Estate provided permanent debt financing for the Atlanta, Dallas-Fort Worth and Hazelton assets. Additional terms were not disclosed.
“In this volatile economic climate, cold storage continues to demonstrate its recession-proof qualities as an asset class,” said Sean Gilbert, a principal with Saxum. “This portfolio features thoughtfully designed, state-of-the-art cold storage assets that will have a profound impact on the food and beverage supply chain in the U.S. going forward.
“BGO’s expertise in the sector combined with their dedicated cold chain investing platform was materially beneficial and aided in our selection of them as a partner, especially. Their team was exceptional, and we are proud to partner with them.”
In a news release, Saxum said each building has 50-foot clear ceiling heights and ample dock space and dock doors to expedite distribution and container handling services, as well as convertible rooms at each facility with temperature capabilities between negative 10 and 38 degrees Fahrenheit.
Arcadia Cold Storage & Logistics, a cold storage operator established in 2021, leases some 81 percent of the 1.7 million-square-foot portfolio, the news release said.
“BGO’s cold chain logistics sector focus and expertise was well matched with this unique opportunity to recapitalize Saxum’s newly constructed portfolio of cold storage projects,” said Kevin Rivest, managing partner and U.S. head of cold chain logistics at BGO. “We are excited to close this transaction and grow our relationship with Saxum and Arcadia. They have been leaders in cold storage development and operations and are true experts in the space. The scale and collective cold chain experience of this group, and BGO’s depth of financing relationships, combined to drive this unique opportunity to closing.”
Saxum added that the recapitalization marries its highly active development platform with one of the largest cold chain logistics real estate investors in the world. Its pipeline also includes a project in Jacksonville and planned 2024 projects in Charleston, Chicago, northwest Indiana and Houston.
“As one of the largest cold chain logistics real estate investors globally, this partnership and transaction aligns well with BGO’s global cold chain business and mission statement to expand and modernize the cold chain to meet the current and future demands of food and pharmaceutical companies in North America, Europe and Asia,” said Jonathan Epstein, global head of cold chain logistics at BGO.
