Philadelphia, PA BG Capital, a Philadelphia-based commercial real estate investment firm, announced a new strategic real estate partnership with New Jersey based cold storage operator FreezPak Logistics to build and own over 200 million cubic feet of customized cold-storage industrial distribution facilities in port centric markets across the United States at over $3 billion in total asset value.
The first project BG Capital plans to build will be in Philadelphia's Port Richmond neighborhood (2201 East Allegheny Ave.) and is slated to break ground Q3 of 2022, at a total project cost of $85 million.
FreezPak is taking a long-term triple-net lease for this building and the rest of the future builds moving forward.
While BG Capital's team is sourcing the financing for all the projects, FreezPak will put up their proportionate share of equity for each project.
“BG Capital is extremely pleased to be the developer partner for the FreezPak national expansion program," said BG Capital's president Joe Byrne. "Both companies were founded upon a blue-collar work ethic and a relentless hunger for growth. The synergy between our two groups is exactly what is required to ensure an endeavor of this magnitude is successful.”
The Philly Port Richmond project will consist of a ground up new construction of 170,117 s/f building with a building height of 75 ft. on a seven-acre parcel, containing 20 loading docks, 30 trailer parking stalls, and 60 additional car parking. The building is designed to install a fully automated ASRS Automated Storage and Retrieval System in a portion of the building.
The building will be leased solely by FreezPak Logistics on a long-term lease which anticipates bringing 60 new permanent jobs to the neighborhood of Port Richmond with countless additional jobs provided throughout the construction timeline of the project.
“FreezPak is thrilled to find a partner like BG Capital that understands our goal of being a fully integrated company," said FreezPak's co-founder/CEO Dave Saoud. "This partnership enhances our one stop shop model by becoming the developer, operator, integrator and logistics provider.”
“The speculative cold storage market does not meet the needs for automation and advanced material handling equipment," said FreezPak's co-founder/CEO Mike Saoud. "This joint venture will accelerate our growth and enable us to offer our clients cold storage around the country.”
Other sites in other cities to include Houston, Jacksonville, and others, will follow with plans to break ground Q1 of 2023.
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