Westmount Realty Sells 1 MSF Dallas Cold Storage Asset

Dallas Food Center. Image courtesy of Westmount Realty Capital

Westmount Realty Capital and a DRA Advisors-managed fund have sold Dallas Food Center, a 1.1 million-square-foot cold storage facility near Dallas. Scout Capital Partners was the buyer, according to Yardi Matrix. Wells Fargo provided $71.8 million in bridge financing.

Originally built in 1971 and most recently expanded in 2008, the asset comprises four distribution buildings, two refrigerated warehouses and trailer storage. After acquiring the facility in 2012, Westmount implemented a capital improvement plan, which included converting dry warehouse space into cold storage, upgrading sprinklers and installing a heated floor, later increasing clear heights by some 15 feet. According to the seller, the property is 92 percent occupied and includes tenants such as Kraft Heinz Co.

Located on 61 acres at 2600 McCree Road in Garland, the facility is alongside Interstate 635 midway between downtown Dallas and Plano. The property benefits from rail service from Dallas, Garland and Northeastern Railroad.

Jonathan Bryan and Randy Baird of CBRE represented the seller. In September, Westmount paid nearly $31 million for a 710,000-square-foot warehouse outside Nashville, Tenn.