Arcadia Cold Eyes Chicago Growth Spurt
Plans call for the construction of two new facilities in the market.
Arcadia Cold Storage & Logistics plans to build two cold storage facilities in metropolitan Chicago and to begin construction on the first one by the end of this year.
In collaboration with its national strategic development partner, Saxum Real Estate, the Atlanta-based Arcadia intends to build a combined 600,000 square feet of space, providing support for more than 80,000 pallet positions of frozen and refrigerated capacity. Arcadia states that this space will be used for its “current client base and to satisfy demand from regional and national food manufacturers, retailers and foodservice providers….”
An Arcadia Cold spokesperson was unable to provide any additional information on either of the projects, including their dollar values or exact locations.
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The company’s website, however, does state that the first facility will be 294,000 square feet and handle 40,000 pallet positions, suggesting that the two buildings will be similar in size.
According to a company statement, the demand for cold storage facilities in the Chicago area is driven by the city’s strategic position as a major transportation hub and its status as a key player in the food distribution industry.
Established in April 2021, Arcadia Cold specializes in providing third-party handling, storage, distribution and value-added services to the food industry.
Heated expansion
Especially considering the cost and complexity of developing cold storage facilities, Arcadia’s expansion since its founding has been aggressive. The company recently announced plans to build a facility in Charleston, S.C., which is in addition to multiple other projects.
• In March of last year, Arcadia preleased a 293,000-square-foot asset in metro Phoenix, then under development by Ti Cold and BentallGreenOak.
• The following month, Arcadia began construction of a 216,297-square-foot facility in Jacksonville, Fla. The 30,254-pallet asset will come online later this year.
• And in December, the company opened a 250,000-square-foot facility in Sparks, Nev. Reportedly the first cold storage facility in metro Reno, Nev., the 37,000-pallet property was designed and built by Ti Cold.
Nationally, at least a net 3.2 million square feet of cold storage space was absorbed in each of the past four years, an amount that exceeded the 2007–19 yearly average by more than 11 percent, according to a brand-new report from Marcus & Millichap.
Further, Arcadia’s three locations just above are consistent with U.S. population shifts, which have seen Arizona, Florida and Nevada grow, at the expense of California and the Northeast, Marcus & Millichap noted.
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