Cold Storage Developer Expands in Denver with $19M Acquisition
A single-story cold storage and food distribution facility located at 4475 East 50th Ave in Denver, has sold for $19,093,400 to Karis Cold, a private equity-backed, specialized cold storage developer and investor. Since the onset of COVID, the demand for food-related industrial properties has peaked and continues to be highly sought after by investors and users.
Karis Cold has earmarked a large amount of capital to renovate and modernize the facility in order to immediately accommodate any food-grade tenant. The exterior of the building will undergo a transformation with new paint, roof improvement and site updates. The interior will also be re-painted and the building systems will be updated including refrigeration system enhancements, electrical system upgrades, fire/life safety upgrades, new insulated metal panel installation and other interior amenity upgrades.
Vice President Turner Wisehart, Senior Vice President Chris Cummings and Associate Cater Cosgrove with Colliers’ Food Advisory Services team collaborated with the firm’s Denver-based industrial experts, Principal Cody Sheesley and Vice President Tyler Ryon, on the transaction. The Food Advisory Services team led negotiations on behalf of Karis Cold. Sheesley and Ryon represented the seller, Country Life Insurance Co.
The building was leased at the time of the sale to Americold Logistics, one of the largest cold third-party logistics companies in the world. Americold vacated the building in December to move to a new, larger facility built specifically for them by the new owners, Karis Cold. Ownership has enlisted Colliers to secure a new tenant.
“We are grateful for the opportunity to work with Karis Cold on the acquisition of this asset and are excited to bring it to market for lease,” said Turner Wisehart. “The extreme lack in existing cold storage supply coupled with high demand from food users across the U.S. created the ideal situation for the seller and new owner.”
The building is well located in the heart of Denver near other food-grade facilities and other supply chain logistics warehouses. The building’s 170,071 total square feet offer 96,973 square feet of freezer space, 17,428 square feet of cooler space, 25,552 square feet dedicated to docking and staging, 11,000 square feet of office space and 21,000 square feet for maintenance and miscellaneous use. The building features 28 dock-high doors with levelers, four rail doors and one drive-in door, 13,280 pallet positions and 32 parking stalls. The building’s ammonia refrigeration systems have been expertly maintained by the current tenant. Cooler and freezer systems within the building can accommodate temperatures from -40 to 35 degrees Fahrenheit.
“Karis is excited to expand our cold storage presence in the Denver market with this high-quality asset,” said Ken Verne, senior director, Karis Cold. “Access to population is vital to the success of cold storage and food distribution. We believe in both the infill location of this facility to serve Denver, but also the critical role Denver plays as a gateway to the Mountain States and Western United States.”
Photo courtesy of Colliers