A joint venture between Banner Property Group and an institutional investor has purchased 2292 W. Sand Lake Road, a 150,000-square-foot cold storage warehouse in Orlando, Fla. The partners acquired the asset from Quirch Foods, a subsidiary of Palladium Equity Partners, in a transaction that also involved a short-term leaseback.
CommercialEdge data shows that the buyers paid $26.1 million for the Class B property, financing the purchase with a $22.8 million loan from Synovus Bank. JLL represented the seller and procured the floating-rate acquisition financing for the buyer.
JLL also advised Quirch Foods in another similar transaction. In September, the firm sold two cold storage facilities located in Miami and in metro New Orleans.
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Completed in 1972 on 8.9 acres, 2292 W. Sand Lake Road previously traded in 2014 for $7.1 million, according to CommercialEdge information. The multi-tenant facility is an entirely refrigerated food grade warehouse with 105- to 125-foot truck courts, rail doors and insulated ceilings.
Served by a CSX-operated railroad, the asset is roughly 8 miles from downtown Orlando and 10 miles from Orlando International Airport. Additionally, the property is located between the Florida Turnpike and US Highway 441, providing easy access to much of Central and South Florida.
The JLL Capital Markets Investment Sales and Advisory Team representing the seller was led by Managing Director Luis Castillo, Directors Max La Cava and Cody Brais as well as Analyst Taylor Osborne. The Debt Advisory team that secured the loan for the buyer consisted of Managing Director Melissa Rose, Director Michael DiCosimo, Vice President Christopher Gathman and Analyst Nicole Barba.
Cold storage comes in hot
Rising alongside e-commerce-related space and bolstered by the prevalence of online shopping for groceries, cold storage space has seen a significant upswing in investment and development activity, becoming one of the most lucrative subsectors of industrial real estate.
According to a CBRE report, cold storage development rose over tenfold to 3.3 million square feet nationwide at the end of this year’s second quarter, up from just 300,000 square feet in 2019. Many of the largest markets in the US are in the South and Midwest , with the Sunshine State having a 10.1 million-square-foot cold storage inventory, the report shows.