Vertical Cold Storage Opens Kansas City Facility

Vertical Cold Storage, sponsored by Platform Ventures, has opened its 311,000-square-foot multi-modal distribution facility in Kansas City, Mo. The center, which features 47,000 pallet positions, includes blast freezing technology and multiple rooms that can be converted from +35 degrees F to -20 degrees F.

Vertical Cold Storage broke ground on the facility in November 2023. At the time, it was the firm’s eighth such property. Innovative materials and systems were used in the building design and construction to reduce energy consumption. Primus Builders served as lead contractor.

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The facility is at 14820 Cleveland Ave., adjacent to the CPKC intermodal terminal in South Kansas City and within 30 miles of the BNSF, Union Pacific and Norfolk Southern terminals, giving it reach to and from anywhere in North America.

“Kansas City is a strategic hub … ideal for efficient distribution,” Mark Smid, CFO for Vertical Cold Storage, told Commercial Property Executive. “Its strong food and beverage production base and proximity to two-thirds of the U.S. population within a two-day drive made it the perfect choice for expanding our footprint.”

Vertical Cold Storage also has distribution centers in and around Chicago, Dallas, Indianapolis and Miami, among others. In July, the firm acquired its 10th cold storage facility, a warehouse in Dotham, Ala.

Appetite for cold storage

The vacancy rate for cold storage has significantly outperformed the overall broader industrial market since the inception of record keeping, according to Ed Halaburt, managing director at JLL Capital Markets.

He told CPE “This is likely due to a more constrained development pipeline within cold storage and the inelastic demand for food despite economic conditions.”

And the subsector is poised for growth, attracting investors, developers and financiers alike. “C-PACE financing, available in Missouri and on a near-national level, has become an increasingly popular construction and bridge financing tool across markets and asset classes, including cold storage, due to its flexible and cost-effective terms,” Francisco Crespo, director of originations with Nuveen Green Capital, told CPE.

“Nuveen Green Capital recently provided C-PACE financing for Class A cold storage projects, one in Philadelphia and another in Jacksonville, Fla.,” Crespo added. “By utilizing C-PACE, the sponsor was able to fill a gap in the project’s capital stack and obtain more leverage.”