Lineage Logistics Buys 1.3 MSF Cold Storage Portfolio

Lineage Logistics facility in Colton, Calif. Image courtesy of Lineage Logistics

Lineage Logistics has beefed up its Eastern and Midwestern U.S. network of cold storage industrial properties with the acquisition of eight warehousing and e-commerce assets totaling 1.3 million square feet across six states. The seller was Burris Logistics, a Milford, Del.,-based temperature-controlled food distribution company.

The financial terms of the deal were not disclosed but Lineage Logistics said it will provide the REIT’s customers with greater access to end-to-end cold storage solutions. The transaction covers all of Burris Logistics’ facilities with approximately 115,000 pallet positions in Lakeland, Fla.; Jacksonville, Fla.; McDonough, Ga.; Edmond, Okla.; New Castle, Del.; Waukesha, Wis.; and Federalsburg, Md. It is the third time Lineage has acquired properties from Burris. In 2020, Lineage purchased a Lyndhurst, Va., location and in 2021, Lineage bought a Burris property in Haines City, Fla.

Describing the acquisitions as complementary locations, Greg Lehmkuhl, Lineage president & CEO, said in a prepared statement the deal represents the trust built between the two companies and the track record delivered across the firms’ longstanding relationship.

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Burris, a nearly-century old, family-owned business, has developed deep relationships with some of the nation’s leading retailers and foodservice companies. With the closing of the deal with Lineage Logistics, Burris’ remaining portfolio will consist primarily of Honor Foods, its foodservice redistribution company, and Trinity Logistics, its freight solutions provider.

The eight additional locations will enhance Lineage Logistics’ existing e-commerce and direct-to consumer fulfillment business that serves more than 100 customers. The acquired facilities, with strategic locations in the Eastern and Midwestern U.S., are near major highways and transportation hubs. They will serve densely populated markets to help Lineage’s direct-to-consumer fulfillment operation reach all 50 states.

Assets highlighted

Information about the eight properties is still available on the Burris Logistics website. The properties sold to Lineage Logistics are:

• 3946 Federalsburg Highway, Federalsburg, Md.; 137,727 square feet of space including 10 dock doors and four convertible rooms for frozen or refrigerated temperatures;
• 4501 Dignan St., Jacksonville, Fla.; 226,000 square feet of warehousing space; 197,000 square feet of refrigerated space; 20,000 pallet positions; four temperature-controlled rooms and three car rail siding;
• 2505 Knights Station Road, Lakeland, Fla.; 111,417 square feet of warehousing space; 10,500 pallet positions; six temperature-controlled rooms and 17 dock doors;
• 1101 County Line Road, Lakeland, Fla.; 117,247 square feet of warehousing space; 90,700 square feet of refrigerated space; 17,000 pallet positions; four temperature-controlled rooms; 10 dock doors and two car rail siding;
• 350 King Mill Road, McDonough, Ga.; 250,000 square feet of space; 28,000 pallet positions; four rooms with variable temperature capability; -20 F for ice cream; 70 F for ambient/dry storage; 28 dock doors and 50 acres of expandable property;
• 1000 Centerpoint Blvd., New Castle, Del.; 135,000 square feet of space; three convertible rooms ranging from -20 F to 50 F; 14,450 square feet of refrigerated dock space; 24 dock doors and two deep racking for flexibility;
• 14343 N. Kelley Ave., Oklahoma City, Okla.; 58,000 square feet of space expandable up to 200,000 square feet; four temperature-controlled rooms convertible from freezers to coolers; 28,000 square feet of temperature-controlled space; 2,714 pallet positions and nine dock doors;
• 900 Gale St., Waukesha, Wis.; 160,000 square feet of space; 18 dock doors; refrigerated loading docks; Freon refrigeration system; 44,500 square feet of freezer space (-10 to -20 F); 49,500 square feet of cooler space (28 F to 50 F); 67,000 square feet of dry storage space and 10,000 pallets.

To address the pandemic-induced rise in demand for cold storage facilities back in 2020, Lineage Logistics has raised $1.6 billion in equity to boost its portfolio of temperature-controlled facilities. The company’s global footprint currently includes 400 facilities totaling more than 2.5 billion cubic feet of capacity.