Cold Storage
Increased consumer demand for fresh foods along with the growth in online grocery shopping have heightened the demand for cold storage facilities. Cold storage is a unique asset type with a limited number of transactions relative to other traditional warehouses. Despite heightened demand, new development is limited due to the risk associated with speculative development and the high cost of building and operating these facilities compared with other industrial properties.
There has been a rise in the number of cold storage sales in recent years, with an emphasis on large transactions fueled by consolidation within the industry. Several factors are key to the valuation of these types of properties including physical characteristics of the building, operational factors (including revenue and EBITDA), locational proximity to agriculture and/or food processing facilities and transportation hubs and demand from storage customers.
NVC is an industry leader in the valuation of cold storage facilities, completing more than 400 assignments across 30 states with an aggregate value in excess of $14 Billion. Our cold storage and food processing team has extensive experience ranging from older facilities in smaller rural markets to ultra-modern, high clear height facilities with automated retrieval systems. Our industry-specific knowledge is unrivaled, resulting in the award of numerous cold storage portfolio assignments involving some of the largest cold storage warehouse and logistics providers and financial institutions in the U.S.
NVC’s team of experts can assist with all your needs from a real estate perspective including internal or external valuations and consulting and advisory services related to the purchase or disposition of assets. Click here to download our most recent brochure: NVC – Cold Storage Brochure
Recently Completed Cold Storage Facility Assignments:
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Assignment
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Location
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Size
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64 Facility Portfolio
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22 States
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17.7 Million SF
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47 Facility Portfolio
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17 States
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14.8 Million SF
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18 Facility Portfolio
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7 States
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5.2 Million SF
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16 Facility Portfolio
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8 States
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3.9 Million SF
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12 Facility Portfolio
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8 States
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1.9 Million SF
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Mars Chocolate
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Chicago, IL
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1.4 Million SF
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Terminal Freezers
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Oxnard, CA
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586,000 SF
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Amy’s Kitchen
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White City, OR
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328,000 SF
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Sprouts Cold Storage
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Glendale, AZ
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129,000 SF
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Taku Smokeries
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Juneau, AK
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52,400 SF
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