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7/13/20
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A joint venture between Condor Cold Storage and AEW Capital Management has purchased a 285k sf cold storage facility in Phoenix. Although we don’t have the actual deal price, we can tell you that the acquisition was financed with a loan of $22 mil.
Located at 7000 W. Buckeye Rd, the cold storage facility is 100% leased to Café Valley, a producer of high-quality bakery products for in-store bakeries, club stores, foodservice and convenience stores around the world. The property was built in 2010 and features 36-foot clear height. It comprises a combination of office, warehouse, baking, production and state-of-the-art ammonia freezer facilities.
The property offers exceptional access to several major freeways, including Interstate10, Loop 101, Loop 202 and Interstate 17.
CBRE’s Bruce Francis, Robert Ybarra, Shaun Moothart, Dana Summers, Doug Birrell and Jim Korinek facilitated the loan on behalf of the borrower. Condor Cold Storage is a division of real estate investment firm Brookhollow, focused exclusively on the acquisition and development of cold storage and food related properties.
The food industry is undergoing significant disruption from COVID-19, as U.S. consumers increasingly have groceries delivered directly to their homes (D2C) or are buying online and picking up in store (BOPIS), according to CBRE Research. Considering that 95% of food produced in or imported to the U.S. goes through third-party distribution centers before reaching consumers, this shift undoubtedly will impact the cold storage sector. CBRE Research explored the relationship between e-commerce grocery growth and cold storage warehouse capacity in its Food on Demand Series: Cold Storage Logistics Unpacked report, concluding that an additional 75 msf to 100 msf of freezer/cooler space will be needed to meet demand for D2C food delivery and BOPIS. The COVID-19 pandemic is accelerating this trend.
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