Exclusive: Lineage Logistics Sells Cold Storage Facility for $60M

January 21, 2026

The property came online in 2014.

Exterior shot of the cold storage property at 1349 W. La Brea Ave. in Santa Maria, Calif. — The property features 30,000 pallet positions as well as space for frozen storage and on-site food processing. *Image courtesy of Yardi Matrix*

Lineage Logistics has sold a 226,000-square-foot cold storage facility in Santa Maria, Calif., for $60 million, according to Yardi Matrix. Arctic Cold bought the asset with the help of a $30 million loan from UMB Bank.

With this investment, Arctic Cold expanded its California footprint to nearly 1.3 million square feet.

Lineage developed the facility in 2014. It is unclear when Arctic Cold took space here, but now the company is using it as its second Santa Maria location and its third in the Golden State.

The Class A property occupies approximately 10 acres at 1349 W. La Brea Ave., close to the city’s local airport. California State Route 135 and U.S. Route 101 are both nearby, allowing easy access through Central Coast, the Bay Area and Southern California.

The building includes 132,000 square feet of frozen storage space, 65,000 square feet for on-site food processing and eight blast-freeze cells with a capacity of up to 1 million pounds per day. Other property features include four grade-level doors, 14 dock-high doors, rail access, in-house transportation services and 30,000 pallet positions.

Top operators fuel cold storage’s growth

Online grocery shopping is estimated to grow five times faster than the 1.7 percent rate anticipated for in-store spending by 2029, according to Food Logistics. The online shopping segment will account for 17 percent of all grocery sales and is forecasted to contribute over 50 percent of the grocery market’s dollar volume gains over the next three years, fueling the U.S.’ cold storage growth despite current challenges.

As of the first half of 2025, the cold storage market has hit the highest vacancy rate in the past two decades, mostly driven by new supply that has yet to be absorbed, according to a report by Newmark. The top two largest operators were Lineage and Americold, with nearly 4 billion cubic feet of combined capacity.

In California, the long-time national leader for cold storage inventory, the subsector’s footprint reached 20.5 million square feet, located mostly in the Los Angeles and Inland Empire markets. For context, between 2019 and 2024, Los Angeles developers completed only 934,739 square feet of cold storage space, the largest facility being Arctic Cold’s Oxnard, Calif., property.