Conversions of refrigerated warehouse buildings into food processing buildings.

Conversions of refrigerated distribution buildings into food processing facilities.

Refrigerated warehouse buildings are now becoming of greater interest to processors of refrigerated food products and food ingredients.  Historically refrigerated buildings with freezer or cooler warehouse space were only of interest to distributors of food products and food ingredients that require only freezer or cooler warehouse storage temperatures. Today the refrigerated food processor has become interested in these refrigerated distribution facilities because of the existing freezer or cooler warehouse space located that are inside of these are refrigerated buildings. The reason for this interest is the cost and a building of a new refrigerated food processing facility.

The cost of a new food processing facility will cost from $140.00 to $175.00 per square foot to build. This includes a search for a site to construct the new building, and then the acquisition of the land site, which is followed by the lengthy application process to the various local municipal agencies for the permits necessary to build a new building.  Also the construction of the new food processing facility includes a substantial amount of architectural drawings which involve significant amount of time and expense to complete. Then the construction time of the new refrigerated food processing facility may take up to a year, and is often affected by weather conditions and construction issues that occur during the winter months.  The whole process can take up to 2 years.

However, the purchase of a refrigerated warehouse building with existing freezer or cooler space allows the food processor to convert the dry/ambient warehouse area into a food processing space and then began making food. The freezer or cooler warehouse areas already exist, and in most instances they are already pallet racked. The refrigeration system, whether it is ammonia or Freon mechanicals, is already in place.  The conversion of the dry/ambient warehouse floor space into refrigerated food processing areas requires the installation of whatever flooring surfaces/floor drains are required.  There is the installation of insulated wall and ceiling panels, as well as extending the refrigeration system into the production area. If additional employee welfare area is required, it is an extension of the existing office space which already has heating/air-conditioning, water and sewer systems.  The purchase of the refrigerated building usually takes about 60 days, and the conversion would be another 90 days.  The whole thing should take no more than 6 months.  The purchase price of a used refrigerated building will range anywhere between $35 per square foot to $65 per square foot with the conversion of dry/ambient warehouse space into a refrigerated processing area costs somewhere between $75 and $100 per square foot.

When one looks at the time, effort and cost associated with new construction of a refrigerated processing building versus the time, effort and costs associated with converting an existing refrigerated warehouse facility becomes a compelling argument to purchase a used refrigerated warehouse facility.

Hawk Distribution Services, LLC www.hawkds.com  is in the refrigerated real estate brokerage business of selling used refrigerated buildings, both processing or distribution facilities for sale or lease in the Midwest.  Hawk Distribution Services, LLC has offices in St. Louis, Missouri as well as Kansas City, Missouri.  Contact in the St. Louis County, Missouri office is Jim Cronin at 314-994-0577 or email of j.cronin@hawkds.com  or the Kansas City, Missouri office is Phil Pisciotta at 816-510-2060 or email of p.pisciotta@hawkds.com