Construction Financing Secured for Cold Storage Development in Brighton
CBRE has secured a $35.4 million loan to fund the ground-up construction of a 247,000-square-foot Class A cold storage development in Brighton. The industrial refrigerated development is part built-to-suit and part speculative build. Illinois-based Karis Cold developed the facility and has pre-leased 167,300 square feet. The facility is located at 189 Bromley Business Parkway.
“This is an investment grade asset as currently leased, but we know that not all users can commit to occupy years in advance of completion,” said Jake Finley, managing director and founder, Karis Cold. “We want excess space to offer the Denver cold storage market that is customizable and available in substantially less time than a build-to-suit. We plan to build similar cold storage facilities in this market and other strategically selected markets throughout the U.S.”
The remaining 79,700 square feet of space available for lease includes 58,000 square feet of customizable freezer/cooler space with 40’ clear heights, and 17,000 square feet of cold dock space with 32’ clear heights.
According to a report from CBRE, the cold storage industry is forecasted to benefit from rising consumer demand for food products and a subsequent increase in demand for industry storage services. This will generate demand for high-end organic, enhanced and all-natural varieties of food, spurring the growth of refrigerated storage operators that offer specialized storage and handling capabilities.
Cliff Joyner with CBRE Capital Markets’ Debt & Structured Finance team in Nashville arranged construction financing on behalf of Karis Cold.
Rendering courtesy of CBRE