Saxum, BGO Recapitalize 1.5 MSF Cold Storage Portfolio

One of Saxum’s cold storage facilities in Atlanta. Image courtesy of Saxum Real Estate

Saxum Real Estate, together with equity capital partner BGO, has completed the recapitalization of an approximately 1.5 million-square-foot cold storage portfolio.

The collection comprises six recently built properties located in major U.S. distribution hubs such as Phoenix, Atlanta and Dallas-Fort Worth but also in Hazleton, Penn., and Reno, Nev. A seventh facility, situated in Atlanta, is expected to close shortly, bringing the portfolio to nearly 1.7 million square feet.

The recapitalization process involved three separate transactions. In one of the deals, PGIM Real Estate provided permanent debt financing for the Atlanta, Hazleton, Penn., and Dallas-Fort Worth assets.

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Arcadia Cold Storage & Logistics, a leading cold storage operator, occupies nearly 81 percent of the 1.7 million-square-foot portfolio. Each property features 50-foot clear heights, container handling services, ample dock space and convertible rooms with temperature between -10 and 38 degrees F.

Cold storage continues to show its recession-proof qualities despite the current economic uncertainties, said Saxum Principal Sean Gilbert in prepared remarks. The company has more than 2 million square feet of cold storage space and its development pipeline includes over $1 billion in capitalization across cold storage, industrial and multifamily investments.

Other moves on the cold storage front

In October, Lineage Logistics expanded its Eastern and Midwestern U.S. footprint with the acquisition of a 1.3 million-square-foot cold storage portfolio. The portfolio includes eight warehousing and e-commerce assets spread across six states.

In an earlier deal, Vertical Cold Storage purchased MWCold, an operator of two-temperature-controlled warehouses totaling 545,000 square feet in the Indianapolis area. The acquisition was sponsored by Platform Ventures.