Refrigerated building- Analysis of St. Louis, Missouri building sale and building lease transactions.

An outline that applies in analyzing refrigerated building real estate sales.

This outline pertains only to potential prospect or customer base that are in need of refrigerated warehouse buildings. Refrigerated 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, of all refrigerated buildings 75% have freezer storage capabilities, and 25% of refrigerated buildings have cooler storage capabilities. Therefore the 75% of all prospects would need freezer warehouse storage capabilities and other 25% would need cooler warehouse space the prospect needs additional capacity. Transaction history on refrigerated building shows that 7 out of 10 real estate transactions are for leasing refrigerated space, and 3 are sale transactions. Probably the reason for so many lease transactions is that a company needs additional space for some interim period. 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 St. Louis then the prospect base would be 25% of the St. Louis refrigerated market, 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 the St. Louis market being a viable candidate for the St. Louis 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.hawkds.com

Sale of a Bakery Building in St. Louis County, Missouri.

Sale of a Bakery Building in St. Louis County, Missouri. A food production building used for commercial making operations was sold on July 2, 2013. The 42,075 ft.² industrial building had a food production area and refrigerated warehouse space with cooler temperatures. There also was a freezer warehouse storage area. The food production facility had 2,720 ft.² of office space with an employee welfare area to accommodate employees in the commercial production of bread and pastry products. The building was located at 9769 Reavis Park , St. Louis County, Missouri 63123.The refrigerated food production facility was constructed in 1970 and situated on 2.59 acres. The freezer warehouse space addition was added in approximately 1990. The facility was listed by a real estate brokerage company in early 2012. The food production facility property was purchased by the Affton school district in July, 2012. The listed rate at the time the sale was $995,000 .The school district's intention in purchasing the refrigerated building was to use it as an annex to support the nearby high school. High School no longer had any more space to expand onto their existing building. It is not usual for the sale of refrigerated or food production buildings with freezer warehouse space or cooler to be sold to a user that does not require refrigeration capacities. The non refrigerated purchaser simply needed an industrial building located near their primary business operation for additional production capacity or additional warehouse space. Jim Cronin is a refrigerated building real estate broker from St. Louis at 314-994-0577 or e-mail J.Cronin@hawkds.com Jim was not involved in this real estate transaction.