Refrigerated warehouse buildings: An analysis of freezer and cooler warehouse buildings prospects in the Midwest.

An outline to analyzing refrigerated building real estate sales. This outline is only  for potential prospects in searching for refrigerated industrial buildings. Refrigerated industrial buildings are any industrial property that has more than 15% of the building’s floor space capable of +42° to -10° warehouse storage temperature capabilities. Generally, 75% of all refrigerated buildings  have freezer storage capabilities, and 25% of refrigerated buildings have cooler storage capabilities. I coincidence 75% of all potential prospects would need freezer warehouse storage capabilities and other 25% would need cooler warehouse space.

Transaction history on refrigerated building shows that 7 out of 10 real estate transactions are for the leasing refrigerated space, and 3 are for purchasing refrigerated buildings. The reason for so many lease transactions is that a company needs additional space for some interim period. Additionally,  in all industrial real estate transactions, 80 to 85% of sale or lease transactions are with local companies which are purchasing or leasing local building. The remaining 15 to 20% are regional or national companies that need a presence in that local market, therefore they need to purchase or lease a local building.

 An example if the cooler warehouse building was for sale in any Midwest city, then the prospect base would be 25% of the Midwest cities refrigerated food companies, and then if the building would be only for sale would leave 30% of those prospects which are "Ready, Willing and Able" to purchase a cooler building in that market being a viable candidate for the refrigerated building.

 
Jim Cronin is a refrigerated building real estate broker from St. Louis, Missouri at 314-994-0577 or e-mail J.Cronin@hawkds.com   www.refrigerated-buildings.com

 

 

Sale Transaction- Refrigerated Warehouse Building Sold in St. Louis, Missouri.

A  29,587 square-foot refrigerated warehouse building situated on a 2.87 acre parcel of land was sold on July 20, 2018. The refrigerated building was originally constructed in 1991 and expanded in 2003. The refrigerated warehouse has 22,680 square-foot of freezer warehouse space. There is 5,827 square foot of office space. The warehouse space is completely pallet racked with a total of 1,600 pallet slot positions. The freezer building has 5 truck dock doors. The ceiling heights are 26 and 28 feet high. The building has a Freon refrigeration mechanical system. The freezer warehouse building was originally built by Edy's Ice Cream as a refrigerated distribution center for ice cream. The new owner is operating the facility as a cold storage warehouse facility.

The refrigerated warehouse building is located in St. Louis County, Missouri. The address of the cold storage warehouse is 3820 Ultra Comp Drive, Earth City, Missouri 63045. The Seller was Nestlé Dreyer’s Ice Cream Company. The Purchaser was Parker Page Properties LLC. The Sale Price was $1,700,000 or $57.45 per square foot.

Hawk Distribution Services, LLC represented the purchaser. CBRE, Inc. represented the seller.

Hawk Distribution Services LLC is a refrigerated building real estate broker from St. Louis, Missouri. www.refrigerated-buildings.com

Contact Jim Cronin, Managing Broker at 314-994-0577 or e-mail J.Cronin@hawkds.com

Refrigerated Warehouse Building Sale Transaction in Indiana.

A 140,000 square-foot refrigerated warehouse building situated on a 10 acre parcel of ground was sold on May 16, 2019. The refrigerated building was originally constructed in 1976 and expanded in 1993. The refrigerated warehouse has 90,000 square-foot of refrigerated warehouse space that is 47,000 square-foot of freezer warehouse space, and 43,000 square-foot of cooler warehouse space. There was 34,000 square-foot of food grade and temperature controlled warehouse space in this food distribution facility. The warehouse space is completely pallet racked with a total of 10,862 pallet slot positions. The facility has 19 truck dock doors and 27 to 29 foot ceiling heights. The building has an ammonia refrigeration mechanical system. The refrigerated food facility has active Norfork Southern rail service with 2 rail doors.

The refrigerated building was located in Northeast Indiana. The address of the cold storage warehouse is 7235 Vicksburg Pike, Ft. Wayne, Indiana 46804. The seller was Vicksburg Pike LLC. The purchaser was the Mandich Group LLC. The Sale Price was $6,000,000 or $43.04 per square foot.

Hawk Distribution Services,LLC represented the seller. The purchaser represented themselves.

Hawk Distribution Services LLC is a refrigerated building real estate broker from St. Louis, Missouri. www.hawkds.com

Contact Jim Cronin, Managing Broker at 314-994-0577 or e-mail J.Cronin@hawkds.com

A 75,000 square-foot refrigerated building sold in the Missouri.

Refrigerated Distribution Center in Montgomery City, Missouri sold in 2015.

The former Iowa Beef Packers refrigerated warehouse and distribution building located in Montgomery City, Missouri was closed in 2010. The building was a 75,000 square-foot refrigerated warehouse facility with cooler storage temperatures. The refrigeration system was an ammonia mechanical system. The building has 25 truck dock doors.  The building was constructed by Arco Construction of St. Louis, Missouri. The cooler warehouse facility was built as a distribution center by Iowa Beef Packers in approximately 2000. Iowa Beef Packers close the facility in 2010 The refrigerated building was vacant until 2015. The facility then was purchased by Uncle Rays Potato Chips and converted to a food processing facility in the manufacture of food products. The facility primarily receives raw potatoes and produces food products at the facility in Montgomery City, Missouri.

The food facility was located near Interstate 70. The building is located at 1001 Harness Drive, Montgomery City, Missouri 63361. The former refrigerated distribution center is located approximately 75 miles west of the St. Louis, Missouri Metropolitan area.

Jim Cronin is a refrigerated building real estate broker with Hawk Distribution Services LLC  from St. Louis , Missouri . Jim was not involved in this real estate transaction . Contact Jim Cronin at 314-994-0577 or  e-mail J.Cronin@hawkds.com  www.refrigerated-buildings.com  or www.hawkds.com

Inspecting refrigerated buildings for proper freezer warehouse floor installations.

                                   

                                                         Typical freezer warehouse floor

When understanding if a freezer or cooler warehouse building is capable of  freezer or cooler storage temperatures this has to  be considered. The floor under the refrigerated portion of the cold storage building has to be inspected to make sure it is capable of accommodating freezer storage temperatures. Freezer storage temperatures range between a +10°F down to -10°F.

The warehouse floor over the refrigerated portion of the building will either contain an in-floor heating/defrosting system or it will not . If the building was designed exclusively for freezer warehouse storage, it will have a heating system underneath the warehouse floor.  These heating/defrosting systems are of various types, but it is designed to not let the moisture in the ground below the industrial warehouse floor to freeze.  Whatever water freezes, it expands and that expansion of water below the floor will cause the floor to heave upwards and possibly even result in a structurally unstable warehouse building. 

Jim Cronin is a refrigerated building real estate broker with Hawk Distribution Services LLC from St. Louis, Missouri. Jim  Cronin  either sold or leased  114  freezer or cooler buildings  in his career as a real estate  broker.

Contact Jim Cronin at 314-994-0577 or e-mail J.Cronin@hawkds.com 

Website - www.refrigerated-buildings.com  or www.hawkds.com

 
 

Freezer Warehouse Space For Lease- Alternative Pricing Methods.

Exterior of refrigerated dock area of Ohio refrigerated warehouse.

                                            

Freezer warehouse space with 17 foot ceilings

Freezer warehouse space with 37 foot ceilings

Most of the time when freezer warehouse space is leased, the rent rate is determined on a price per square foot per year basis. An example would be a freezer warehouse room that is 10,000 square feet in total size, and the annual rental rate was $15.00 per square foot, then the rental rate amount would be $150,000 per year or $12,500 per month. However, an alternative method is to lease freezer warehouse space by renting a freezer pallet slot on either a yearly or monthly basis. Often times contract labor warehouse services are available when leasing freezer pallet slot positions.

An example would be in Ohio,  there is 1,200 freezer slots available For Lease. The freezer warehouse space that is available is in northwest Ohio. The freezer warehouse space for lease that contains the 1,200 freezer pallet slots is located in Defiance, Ohio. Defiance, Ohio is 35 miles East of Ft. Wayne, Indiana.

 

The freezer warehouse space for rent is capable of freezer storage temperatures of minus 15° storage temperatures. There are 3 freezer rooms, a refrigerated staging area and 2 truck dock doors available for lease. The freezer warehouse space for lease is fully pallet racked, with 1,200 freezer pallet slot positions available for lease. There are 600 freezer pallet slot positions have 65 inch openings, and there are 600 freezer pallet slots have 78 inch to 81 inch slot openings. There is a blast freezer capable of freezing 80,000 pounds in 48 hours. The refrigerated staging area is 70 feet deep and temperature capabilities of 34° to 37°.

Jim Cronin is a  licensed real estate broker  that specializes in  refrigerated warehouse buildings .For further information contact Jim Cronin at  Hawk Distribution Services LLC, Phone 314-994-0577 or email of j.cronin@hawkds.com

Freezer warehouse building recently sold in Metro St. Louis, Missouri.

                             

Sale of a Refrigerated Warehouse Building in Metropolitan St. Louis, Missouri.

There was the sale of a refrigerated warehouse building in the greater Metropolitan St. Louis, Missouri area. The building sale transaction closed on June 24, 2016. The cooler and freezer warehouse building is located in the Illinois portion of the Metropolitan St. Louis, Missouri area. The refrigerated warehouse building is at 5042 Route 162, Pontoon Beach, Illinois 62040.

The refrigerated warehouse building was a total of 18,324 square feet of refrigerated warehouse and office space. The total refrigerated warehouse area is 15,300 square feet or 83% of the building. The office area is 3,024 square feet or 16% of the building. The refrigerated warehouse space was capable of freezer warehouse storage temperatures. This freezer warehouse building has 33 foot high ceilings and 5 truck dock doors. The construction date was 2001. The building was in good overall condition. The freezer warehouse space and refrigerated dock has Freon refrigeration mechanical systems to provide refrigerated storage temperatures.

The time on market was 8 months. The Sale Price was $1,200,000 or $65.49 per square foot. The seller was Asset Management Development. The purchaser was Cargill Meat Solutions Corporation.

Jim Cronin is a refrigerated building real estate broker with Hawk Distribution Services LLC from St. Louis, Missouri. Jim was not involved in this real estate transaction.

Contact Jim Cronin at 314-994-0577 or e-mail J.Cronin@hawkds.com  www.refrigerated-buildings.com  or www.hawkds.com