Refrigerated Warehouse Company and Refrigerated Warehouse Buildings.

Often times there is confusion between what a refrigerated warehousing company and refrigerated warehouse building. For those not familiar with terminology of this niche of industrial real estate, it can often be frustrating because the two are completely different. A refrigerated warehouse building is an industrial warehouse facility that is capable of freezer and cooler warehouse storage temperatures. The product that is being stored requires that it be maintained in a frozen or a refrigerated temperature. Most of frozen and refrigerated products are either refrigerated food or food ingredients to be used in refrigerated foods. Freezer temperatures in refrigerated warehousing buildings are normally -10°F up to a +10°F. Cooler temperatures in a refrigerated building are usually +34° up to +45°. Ice cream storage and ice cream novelties require -15°F to -20°F. warehouse storage temperatures. A refrigerated warehouse building either been purchased or leased by a refrigerated food processor, or a refrigerated food distributor for the warehouse storage of their product. This is a privately or publicly owned company that is holding their refrigerated food products in a building that they own or lease. Simply stated; A private company in their own refrigerated building, selling refrigerated foods that they own to their customers. A refrigerated warehouse company is a business entity. A refrigerated warehouse company is in the business of storing and handling refrigerated food products that are owned by other companies. Refrigerated Warehouse Company is a type of business that is located in a refrigerated warehouse building and is storing frozen or refrigerated foods for other companies. Sometimes these warehouse companies are referred to as public refrigerated warehouse companies. Simply stated; A public refrigerated warehouse company is in the business of storing other companies refrigerated foods on a temporary or long-term basis. Refrigerated warehouse buildings are sold or are leased on a square foot basis. Refrigerated warehouse companies are sold on a multiple of their earnings from operations (Earnings Before Interest Taxes Depreciation Amortization- EBITDA). Typically a refrigerated warehouse company is sold at a higher price than refrigerated warehouse buildings. Therefore it is important to verify whether it was of business sale or a refrigerated real estate transaction when analyzing the value of any refrigerated warehouse building. Hawk Distribution Services LLC has 28 years of experience of leasing and selling refrigerated buildings. Hawk Distribution Services LLC also has experience in selling public refrigerated warehousing companies. Contact Jim Cronin at J.Cronin@hawkds.com or 314-994-0577.