CHICAGO—The real estate investment firm Bridge Development Partners, LLC has just purchased a 307,000-square-foot, two-building, cold storage facility at the corner of 26th St. and Western Ave. in Chicago. This is Bridge's third investment with Akard Street Partners, an investment partnership operated by Dallas-based Hunt Realty Investments, Inc., since the forming of their joint venture in 2012.
The first of the two properties, 2635 S. Western Ave., was converted to freezer-cooler space in 2004. The second, 2658 S. Leavitt St., is a 52,000-square-foot BTS building completed in 2008. The facility sits in an infill location populated by food users whose clients operate in the CBD. Both buildings are leased to direct users and third-party logistics firms.
“This acquisition allows us to purchase an ideally-located, state-of-the-art cold storage warehouse-distribution facility with strong in-place cash flow at a price well below replacement cost,” says Tony Pricco, a principal for Bridge. “It's an ideal addition to our portfolio because of its current cash flow and long-term growth potential.”
Mesa West Capital provided the joint venture with $26.3 million in first mortgage debt to facilitate the acquisition. The financing was arranged by Steve Roth of CBRE Capital Markets.
“This was an excellent opportunity for us to make a loan to a strong and experienced local sponsor on cash-flowing, high quality real estate in a supply constrained market,” says Mesa West Principal Ronnie Gul. “26th & Western is a solid asset in an infill location with durable demand and very little supply, and will certainly benefit from Bridge Development's experience in creating value with industrial product, particularly cold storage, in the Chicago area.”
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
