BGO JV Sells Kansas City Cold Storage Facility
The building came online last year.
A joint venture between BGO and Yukon Real Estate Partners has sold New Century Cold Storage, a 291,000-square-foot cold storage facility in New Century, Kan. A MetLife Investment Management client acquired the rail-served property.
The purpose-built facility came online last year with the aid of a $44.6 million construction loan, provided by Simmons Bank, Yardi Matrix information shows. The warehouse was build-to-suit for CJ Logistics America, with most of the space dedicated to Flora Food Group.
Located at 27302 W. 159th St., the building is adjacent to the global food company’s plant and within Johnson County Airport Commission’s New Century AirCenter industrial park. The facility has access to Interstate 35, while downtown Kansas City, Mo., is 28 miles away. The site has direct connection to the BNSF Railway.
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The warehouse is solar-ready and features Alta EXPERT refrigeration systems. Additionally, the building has 31 dock-high loading doors and 48-foot clear heights.
Kansas City’s industrial sales activity totaled $252 million year-to-date as of May, the lowest among the top U.S. markets, according to a recent Yardi Matrix report. Assets in the metro traded for an average of $79 per square foot, below the $139 U.S. figure. Only the Twin Cities ($71 per square foot) registered lower prices.
The cold storage market continues to gain momentum as changing consumer habits, online grocery demand and the growth of temperature-sensitive pharmaceuticals continue to increase the need for specialized space. At the same time, much of the existing inventory is aging, creating opportunities for new development, expansions and dry-to-cold conversions, particularly near major transportation corridors and population centers.
BGO’s recent industrial expansion
As of March, BGO had roughly $100 billion in assets under management, following Sun Life’s acquisition of Bell Partners and its combination with BGO. Earlier this year, the firm launched a U.S. value-add industrial strategy with the acquisition of two Atlanta-area properties totaling 1 million square feet. BGO plans to capitalize on recent market dislocation and shifting supply-demand fundamentals by acquiring and repositioning assets in high-growth logistics markets.
Last month, BGO and Harbor Capital acquired Buildings 2 and 3 at Heritage West Industrial Park in Katy, Texas. The two facilities total 299,520 square feet and were fully leased at the time of sale.
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