IDS Real Estate Lands $124M Loan for Cold Storage Facility

14950 Meridian Parkway. Image courtesy of JLL Capital Markets

IDS Real Estate Group has secured $124 million in post-close acquisition financing for its cold storage facility. Lent from Northwestern Mutual, the 10-year fixed-rate loan will go toward 14950 Meridian Parkway in Riverside, Calif.  JLL Capital Markets arranged the deal working on behalf of the borrower.

The property was purchased by an affiliate of IDS Real Estate Group for $225 million in February, according to The Registry.

United Natural Foods Inc. is the sole tenant for the asset. 14950 Meridian Parkway is the company’s main facility for cold storage in Southern California.

The cold storage facility is 1.2 million square feet. Renovated and expanded in 2020, the asset was originally completed in 2007. It features 39 percent cold storage and 61 percent dry storage space with 42-foot clear heights, 185 dock doors and some 700 parking spaces. Temperatures range from -10 degrees Fahrenheit to over 60 degrees Fahrenheit.

Situated with access to Interstate 215, the facility provides proximity to California thoroughfares serving Los Angeles, San Diego, the Inland Empire and western U.S. The lot is 59.4 acres, located in the Moreno Valley/Perris industrial submarket.

According to CommercialEdge data, the area has a traffic count of some 150,000 cars per day.

Representing the borrower was Paul Brindley, JLL Capital Market’s Head of Debt Advisory – Asia Pacific, along with Senior Director Matt Stewart and Director Alethia Halamandaris.

In high demand

The Inland Empire has one of the tightest industrial vacancies nationwide, with an all time low of 0.2 percent in the second quarter of this year according to a CBRE report.

Southern California had more than 621 million square feet of industrial space under construction as of March. Demand for industrial space in the area has been on the rise throughout 2022.