Cold Storage Warehouse Coming to Kansas City
CJ Logistics America will lease the facility.
BGO and Yukon Real Estate Partners have broken ground on a 291,000-square-foot cold storage facility outside of Kansas City, Mo.
CJ Logistics America will lease the upcoming property, with most of the space dedicated to global food company Flora Food Group. The warehouse is expected to open in the third quarter of 2025.
The facility is being developed adjacent to Flora Good Group’s plant, which produces brands such as Country Crock, I Can’t Believe It’s Not Butter and Violife.
YREP Director of Development Axel Anderson stated, in prepared remarks, that the buildings will be connected by an above-ground conveyer bridge to allow finished products to be delivered directly into the warehouse for cold storage, which will increase operational efficiencies for both the food company and CJ Logistics America.
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The warehouse will also be solar-ready and will target LEED certification as part of its sustainability commitments, including clean and efficient energy usage. The facility will also feature Alta EXPERT refrigeration systems.
Located in New Century, Kan., some 30 miles from Kansas City, the site will have a direct connection to the BNSF Railway, the largest freight railroad in the U.S., with a rail spur into the warehouse. The new facility will be less than 4 miles away from Interstate 35. Location-wise, approximately 85 percent of the U.S. will be reachable within two days either by highway, rail or air.
CJ Logistics growth
CJ Logistics, which operates 280 bases in 40 countries around the world, has been expanding its footprint across the U.S. and North America.
In June 2023, CJ Logistics America teamed up with Korean Ocean Business Corp., a South Korean government entity, in a public-private partnership to develop three large-scale logistics centers across the U.S, totaling 3.9 million square feet.
The plan called for CJ Logistics to contribute land for the projects and subsequently to operate them, while KOBC would provide the funding. The facilities will be used to handle import and export cargo of global and South Korean companies.
CJ Logistics America also occupies a 1.1 million-square-foot cross-dock facility in Wilmer, Texas, which is part of Logistics Property Co.’s 252-acre campus. The company also leases a 1 million-square-foot distribution facility in Channahon, Ill.
Previous BGO deals
In August, BGO and RL Cold, a division of RealtyLink LLC, broke ground on a 215,766-square-foot speculative cold storage warehouse in Mount Laurel, N.J. The building is slated for completion in the second half of 2025. Located on a 12-acre site, the property is taking shape just off Interstate 295 and about 13 miles from downtown Philadelphia.
Last December, Saxum Real Estate and equity capital partner BGO completed the recapitalization of an approximately 1.5 million-square-foot, six-property cold storage portfolio. The collection is located in major U.S. distribution hubs, including Phoenix, Atlanta and Dallas-Fort Worth as well as Hazleton, Pa., and Reno, Nev.
A seventh facility in Atlanta was also recapitalized at a later date, bringing the portfolio to about 1.7 million square feet. Arcadia Cold Storage & Logistics, a leading cold storage operator, occupies nearly 81 percent of the entire properties.
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