5420 St. Charles Highway, Berkeley, In poor health. Picture courtesy of Provender Companions
Provender Companions has recapitalized a 1 million-square-foot chilly storage portfolio in a $158 million take care of StepStone Actual Property, the true property arm of worldwide personal markets funding agency StepStone Group.
The six belongings are positioned within the high-growth markets of Oakland, Calif.; Las Vegas, Nev.; Berkeley, In poor health.; Bolingbrook, In poor health.; and Birmingham, Ala. Provender, a Newport Seashore, Calif.,-based food-related industrial buildings (FRIB) investor, acquired the properties over the past three years with an unidentified world funding administration agency that lately offered its pursuits to SRE on a secondary foundation, in accordance with Neil Johnson, Provender founder & CEO.
Along with buying the previous companions’ curiosity, SRE will contribute extra capital to Provender’s funding program to assist the agency construct its platform because it acquires and develops extra best-in-class chilly storage and different sorts of food-related belongings throughout the U.S., John Lengthy, Jr., Provender COO, mentioned in a ready assertion.
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Johnson mentioned in ready remarks Provender has elevated the portfolio’s occupancy price to 100% by leasing belongings to high-quality corporations important to the nation’s meals provide chain. Tenants embody native and regional wholesale meals logistics corporations, meals service suppliers and frozen meals packagers with a remaining common lease time period of roughly six years.
860 81st St., Oakland, Calif. Picture courtesy of Provender Companions
John Waters, accomplice & head of investments at SRE, mentioned in a ready assertion well-located and supply-chain important chilly storage and food-related industrial is among the agency’s high-conviction funding themes. He mentioned SRE is worked up to accomplice with a best-in-class supervisor like Provender to assist it obtain its funding goal.
Up to now 5 years, Provender has acquired almost 6 million sq. toes of refrigerated actual property belongings valued at almost $750 million, offered $600 million of property and leased greater than 5.5 million sq. toes to purchasers together with Nash Finch Co., Sprouts, Greenback Common, Whats up Recent and Kraft Heinz.
Michael Leggett, Sher Hafeez and Josh Lieberman of JLL suggested Provender on the formation of the three way partnership. JLL’s Capital Markets Debt Advisory Workforce of Brian Torp and Peter Thompson sourced the debt financing for the transaction.
Portfolio particulars
The most important property within the portfolio is 400 Industrial Drive in Birmingham, which is 486,353 sq. toes.
Two properties totaling 161,033 sq. toes are positioned in Oakland – 860 81st St., 123,560 sq. toes, and 940 81st St., 37,473 sq. toes.
The opposite belongings are:
- 5420 St. Charles Highway in Berkeley, 132,926 sq. toes;
- 525 Crossroads Parkway, Bolingbrook, 81,405 sq. toes;
- 1201 E. Searles Ave., Las Vegas, 104,399 sq. toes.
Provender offers
In December 2020, Provender fashioned a three way partnership with Cerberus Capital Administration targeted on constructing a multibillion-dollar portfolio of U.S. chilly storage services. The joint ventured additionally included plans to increase a strategic program that allows farms to pivot between bulk and particular person packaging.
Almost a yr in the past, Provender acquired two properties in Londonderry, N.H., totaling roughly 316,000 sq. toes. The Class A properties at 6 Rockingham Highway and 219 Rockingham Highway had been totally leased when acquired from KPR Facilities in an off-market transaction valued at $67 million. The belongings are close to Interstate 93 and 45 miles north of Boston’s central enterprise district.
Extra lately in October, Provender purchased a four-property meals manufacturing and distribution portfolio in 4 states totaling 483,000-square-feet from SpartanNash for $29.9 million. The temperature-controlled buildings had been positioned in Indianapolis; Minot, N.D.; Newcomerstown, Ohio; and Lakeland, Fla.
