Saxum & BGO Announce the Recapitalization of a National Cold Storage Portfolio
December 14, 2023 – Saxum Real Estate is pleased to announce the completed recapitalization of a 6-property, ~1.5 million square foot, Class A cold storage portfolio (the “Portfolio”) with its equity capital partner, BGO, through three separate transactions. Each of the newly built, state-of-the-art cold storage assets feature 50’ clear heights, ample dock space and dock doors to expedite distribution and container handling services, and convertible rooms at each facility with temperature capabilities between -10 to 38 degrees F. The assets are located in major distribution hubs with significant unfulfilled cold storage demand including Phoenix (AZ), Atlanta (GA), Reno (NV), Hazleton (PA), and Dallas-Fort Worth (TX). A 7th facility in Atlanta is expected to close shortly which will bring the total portfolio to nearly 1.7 million square feet.
“In this volatile economic climate, cold storage continues to demonstrate its recession-proof qualities as an asset class. This Portfolio features thoughtfully designed, state-of-the-art cold storage assets that will have a profound impact on the food and beverage supply chain in the U.S. going forward,” said Sean Gilbert, Saxum Real Estate, Principal. “BGOs expertise in the sector combined with their dedicated Cold Chain investing platform was materially beneficial and aided in our selection of them as a partner, especially. Their team was exceptional, and we are proud to partner with them.”
The Portfolio occupancy is anchored by a leading cold storage operator, Arcadia Cold Storage & Logistics, which has leased approximately 81% of the 1.7 million square foot portfolio. Established in 2021, Arcadia Cold specializes in providing unsurpassed third-party handling, storage, distribution, and value-added services to the food industry through its modern cold storage warehouse development expertise and proven operational "know-how".
“BGO’s Cold Chain Logistics sector focus and expertise was well matched with this unique opportunity to recapitalize Saxum’s newly constructed portfolio of cold storage projects. We are excited to close this transaction and grow our relationship with Saxum and Arcadia. They have been leaders in cold storage development and operations and are true experts in the space. The scale and collective cold chain experience of this group, and BGO’s depth of financing relationships, combined to drive this unique opportunity to closing,” said Kevin Rivest, Managing Partner, BGO.
The transaction aligns one of most active cold storage developers in the country, Saxum Real Estate, with one of the largest Cold Chain Logistics real estate investors in the world, BGO. Saxum’s robust cold storage pipeline includes an active project in Jacksonville and planned 2024 projects in Charleston, Chicago, Northwest Indiana, and Houston.
Permanent debt financing was provided for the Atlanta, Dallas-Fort Worth, and Hazleton assets by PGIM Real Estate.
About Saxum: Saxum Real Estate is a national vertically integrated real estate investment and development firm. Saxum’s portfolio includes a variety of asset classes with capitalizations surpassing $2.5 billion with over 2.0MM SF of cold storage, 1.4MM SF of industrial, 1,400 multifamily rental units, 4,000 student housing beds, and over 1MM SF of other assets. Its development pipeline totals well over $1 billion in capitalization across cold storage, industrial, and multifamily investments ranging from value-add to ground-up development. www.saxumre.com
About BGO: BGO is a leading, global real estate investment management advisor, real estate lender, and a globally recognized provider of real estate services. BGO serves the interests of more than 750 institutional clients with expertise in the asset management of office, industrial, multi-residential, retail and hospitality property across the globe. BGO has offices in 27 cities across thirteen countries with deep, local knowledge, experience, and extensive networks in the regions where we invest in and manage real estate assets on behalf of our clients in primary, secondary and co-investment markets. BGO is a part of SLC Management, the institutional alternatives and traditional asset management business of Sun Life. For more information, please visit www.bgo.com.
Contacts:
Name: Sean Gilbert, Principal | Acquisitions
Mobile: 908.770.0872
Email: sgilbert@saxumre.com
Name: Rahim Ladha, Global Head of Communications, BGO
Email: media@bgo.com
