CBRE’s Debt and Structured Financing Team Secures $8.6 Million for Purchase of Cold Storage Facility in California’s Inland Empire

23 Jul 2020

Corona-Cold-Storage

Los Angeles – CBRE announced that its Debt and Structured Financing team secured $8.6 million in financing on behalf of Orange County-based firm Condor Cold Storage for its purchase of a cold storage facility in Corona, Calif.

CBRE’s Shaun Moothart, Bruce Francis, Robert Ybarra, Dana Summers, Doug Birrell and Jim Korinek facilitated the loan on behalf of the borrower, a joint venture between Condor Cold Storage and AEW Capital Management. Condor Cold Storage is a division of real estate investment firm Brookhollow, focused exclusively on the acquisition and development of cold storage and food related properties.

This is the firm’s second purchase of a cold storage facility, after the acquisition of a 285,000 square-foot property in Phoenix earlier this month.

Located at 300 El Sobrante Road and 1701 N. Delilah Street, the property is comprised of two buildings totaling 98,949 square-feet. The asset is 100 percent occupied by Latitude 36 Foods, the leading supplier of salad condiments to the fresh-cut produce industry. The property features 24’ clear heights and a combination of office, food packaging, cooler distribution, and dry storage facilities. The property is strategically located adjacent to the I-15 and SR 91 interchange, providing immediate access to Orange, Riverside and Los Angeles Counties.

“We received the assignment at the beginning of the pandemic when markets were all but shut down,” said Moothart. “Numerous lenders were out of the market. However, the need for cold storage has become increasingly more important and relevant to the market given supply constraints faced across the country. These factors along with best in class sponsorship made this asset particularly desirable for lenders, resulting in very competitive pricing and terms for the borrower.”

An estimated additional 75 million to 100 million square feet of freezer/cooler space will be needed in the U.S. to meet demand for delivery directly to homes and for buying online and picking up in store, according to CBRE’s Food on Demand Series: Cold Storage Logistics Unpacked report. The COVID-19 pandemic is accelerating this trend.

About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2021 revenue). The company has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.