Neil Johnson, founder and CEO of Provender Partners, recently shared his insights on the cold storage building challenges and the solutions Provender is providing to solve inefficiencies in the supply chain.
Author: Andrea Lopez
Provender Partners Announces Sale of Maryland Distribution Center
Premier Refrigerated Real Estate Investor in the U.S. Sells Distribution Center After Securing 7-Year Lease With Fortune 500 Company
Provender Partners today announced the sale of a freestanding food distribution center for $62 million to Scout Capital Partners.
Provender Partners purchased the 363,872 SF tri-temperature food distribution facility located at 8024 Telegraph Road, Severn, Maryland in December 2017. After investing several million in improvements and renovations, Provender secured a seven-year lease with Nash Finch Company in October 2020.
Bruce Strasburg, David Dannenfelser and Craig Childs of Jones Lang LaSalle and Chris Cummings of Colliers International represented Provender Partners and Scout Capital Partners.
“The ability to acquire, enhance, lease and sell a facility of this size and significance in the Baltimore Washington Corridor is yet another example of surging demand for strategically located, quality cold storage facilities,” says Neil A. Johnson, Founder & CEO of Provender Partners. “As the industry pivots in response to ever-evolving market conditions, ‘last mile’ distribution to densely populated areas will play an increasingly important role in serving consumers across the United States.”
This is the latest in a series of recent transactions that have continued Provender’s position as an industry leader of cold storage solutions. Last year, Provender expanded its portfolio with the acquisition of two processing facilities in Illinois and one frozen and refrigerated distribution facility in Oakland, California while selling more than $215 million in assets and leasing over 790,000 SF of refrigerated real estate across the United States. In late 2020, Provender Partners announced a joint venture with Cerberus Capital Management, L.P., a global leader in alternate investing that has deployed approximately $29 billion of equity across the globe.
Provender Partners and Cerberus Announce Joint Venture
Partnership Builds on Provender Partners’ Position as Premier Refrigerated Real Estate Investor in the U.S.
Provender Partners, the premier refrigerated real estate investor in the U.S., today announced a joint venture with an affiliate of Cerberus Capital Management, L.P. (“Cerberus”), a global leader in alternative investing. The partnership will focus on building a multibillion-dollar portfolio of cold storage and processing facilities in the United States, while bringing vital supply chain solutions to market.
Furthering Provender Partners’ position as the leading investor of refrigerated real estate in the United States, the joint venture will provide for a broad range of acquisition opportunities in all U.S. markets. Since its founding in 2014, Provender Partners has acquired nearly $500 million of refrigerated real estate totaling five million square feet. Cerberus Real Estate has a long track record investing across asset classes, property types, and geographies, and has deployed approximately $29 billion of equity in more than 575 transactions around the world. The joint venture will build upon Provender Partners’ industry-leading platform and Cerberus’ global investment and asset management expertise.
“We’re excited to partner with Cerberus and leverage their expertise and financial horsepower to further drive our market-leading position,” said Neil A. Johnson, Founder and CEO of Provender Partners. “Beyond expanding our portfolio, the partnership will broaden our ability to help farmers and distributors as global conditions continue to impact the food supply chain. As processors and warehousers seek efficiency and geographic diversity, we look forward to delivering innovative, quality food supply chain solutions.”
Tom Wagner, Head of North American Real Estate at Cerberus, commented, “The cold storage industrial segment plays an integral role in the U.S. food supply chain and we see strong opportunities to build on the market dynamics. Together with Provender Partners, we will be able to acquire and enhance cold storage facilities across the United States to build a national portfolio of high-quality assets and meet the critical needs of food-related tenants.”
The investment also enables Provender Partners to bring proprietary solutions to market. Its Strategic Break Bulk Freezer Facilities (“BBFF”) program, for example, creates an expansive network of refrigerated buildings designed to respond to market conditions, helping to offset future disruptions. The first-of-its-kind-program enables farmers and food processors to pivot between bulk and individual packaging, thereby eliminating waste, saving billions of dollars, and providing farmers alternative solutions for their product during times of uncertainty.
About Provender Partners
Provender Partners is the premier Food Related Industrial Buildings (FRIB) investor in the U.S. and the only investor 100% dedicated to FRIB. With real estate holdings throughout the United States, Provender Partners combines cutting-edge research and analysis with years of experience to ensure the best possible value for its clients in every facet of the FRIB business. In the past five years, Provender Partners has acquired nearly $500 million of refrigerated real estate totaling 5M SF; sold $493 million of property; and leased more than 4.7M SF to clients that include Nash Finch Company (NASDAQ: SPTN), Sprouts, (NASDAQ: SFM), Dollar General (NYSE: DG), Hello Fresh and Kraft Heinz (NASDAQ: KHC).
About Cerberus
Founded in 1992, Cerberus is a global leader in alternative investing with over $48 billion in assets across complementary credit, private equity, and real estate strategies. We invest across the capital structure where our integrated investment platforms and proprietary operating capabilities create an edge to improve performance and drive long-term value. Our tenured teams have experience working collaboratively across asset classes, sectors, and geographies to seek strong risk-adjusted returns for our investors. For more information about our people and platforms, visit us at www.cerberus.com.
Check out our coverage in the following publications:
Provender Partners Leases Maryland Food Distribution Center to Nash Finch Company
Premier Refrigerated Real Estate Investor in the U.S. Secures 7-Year Lease with Fortune 500 Company
Provender Partners today announced it has secured a 7-year lease with Nash Finch Company, a Fortune 500 company involved in food distribution primarily to independent supermarkets.
Nash Finch Company has leased the entire 363,872 SF freestanding food distribution center located at 8024 Telegraph Road, Severn, Maryland. Ideally positioned near the Baltimore Washington Corridor, the tri-temperature food campus offers freezer, cooler and ambient temperature warehouse space.
The total lease consideration is $25.760 million.
David Dannenfelser of Jones Lang LaSalle and Chris Cummings of Colliers International handled both sides of the transaction.
“The Mid Atlantic Food Center provides access to more than 9 million people living in the Baltimore Washington Corridor,” says Neil A. Johnson, Founder & CEO of Provender Partners. “A 7-year lease with a company of this size provides further evidence of the need to provide ‘last mile’ distribution to densely populated areas of the United States. As our country experiences unprecedented food supply challenges, unique solutions are required to prevent further disruptions to both consumers as well as our farmers and food industry workers.”
The transaction marks Provender’s third large-scale lease in 2020, its most active year since the company was founded in 2014. In the past eight months, Provender Partners has sold more than $150 million in assets; acquired two processing facilities totaling 214,000 SF in Illinois and another 161,000 SF of refrigerated real estate in Oakland. Additionally, Provender has leased a 267,000 SF building to Dollar General; two buildings totaling 161,000 SF to United Cold Storage; and now a 363,872 SF building to Nash Finch Company.
Provender Partners Acquires Two Cold Storage Facilities in San Francisco Area
Acquisitions Expand the Portfolio of Premier Real Estate Investor / Operator of Food Related Industrial Buildings in the U.S.
Provender Partners today announced it has acquired two facilities in the San Francisco area totaling more than 160,000 SF of space on more than 8 acres of land. The transaction adds to its acquired portfolio of more than 5M SF of refrigerated real estate throughout the United States.
Provender Partners purchased two properties, 860 and 940, both on 81st Avenue in Oakland, California. Both facilities include freezer, cooler and dry storage and are ideally positioned near the Port of Oakland and Oakland International Airport. The buildings were acquired for approximately $26 million.
While in escrow, Provender Partners secured a new 7-year lease to United Cold Storage, a San Francisco-based company offering frozen, refrigerated and dry storage space to small businesses and national corporations since 1966.
Art Rasmussen and David Norrie of CBRE handled both sides of the transaction as well as the United Cold Storage lease.
“We are pleased to announce the acquisition of these assets into our portfolio,” said Neil A. Johnson, Founder & CEO of Provender Partners and former Bay Area real estate investor. “The fact that Provender Partners was able to lease the building while still in escrow is indicative of the lack of available refrigerated space in the Bay Area and beyond.”
In 2020, Provender Partners sold more than $150 million in assets; leased a 267,000 SF building to Dollar General and two buildings totaling 162,000 SF to United Cold Storage; acquired 220,000 SF of processing facilities in Illinois; and has now added another 162,200 SF of refrigerated real estate in Oakland to its portfolio.
Provender Partners Announces Sale of Two Grocery Distribution Centers
After More Than $6 Million in Recent Improvements, Provender Partners Sells Two Freezer/Cooler Facilities Totaling More Than 500,000 SF of Space
Provender Partners today announced it has sold two facilities totaling more than 500,000 SF of space in St. Louis, Missouri and San Antonio, Texas.
Both purchased in 2019, Provender Partners invested more than $6 million in extensive improvements and renovations to the distribution centers before securing 10-year leases from Dollar General in both locations. With freezer, cooler and dry storage, the Properties are part of Dollar General’s new DG Fresh initiative to bring logistics capabilities in-house, seeking further control over its operations as it expands into the fresh and frozen food categories.
The distribution centers were purchased for nearly $64 million. Guy Ponticello and Robert Gibson of CBRE and Scott Delphey of Food Properties Group represented Provender Partners.
“As demand for infill cold storage facilities grows, assets like these will become more valuable in light of limited supply and high build costs,” said Neil A. Johnson, Founder & CEO of Provender Partners. “Both of the Properties feature strong surrounding demographic profiles, coupled with tenancy from an investment grade rated corporation, they offer a unique and compelling investment.”
The sale is the latest in recent Provender Partner transactions. This year, the company sold a $90 million+ asset in Fort Worth, Texas; leased a 267,000 SF building to Dollar General; and added two processing facilities — 220,000 SF in Illinois and 161,000 SF in Oakland — to its portfolio.
Acquisition Announcement: Provender Partners Acquires Two Chicago – Area Processing Facilities
Two Acquisitions Expand Provender Partners Portfolio and Help With Shifts in Food Supply Chain Dynamics
Provender Partners today announced it has acquired two facilities in the Chicago area totaling more than 220,000 square feet of space and land at properties in the Chicago-area market, adding to its portfolio of more than 5M SF of refrigerated real estate throughout the United States.
Provender Partners has acquired a food processing facility located in the O’Hare submarket at 5420 St. Charles Road in Berkeley, Illinois. The 141,000 SF facility is currently 100% leased to Preferred Meals, Inc., a leading provider of fresh- and frozen-prepared snacks and meals to schools for more than 45 years.
In the second transaction, Provender Partners successfully acquired a meat processing facility at 525 West Crossroads Parkway in Bolingbrook, Illinois. The 80,000+ SF processing facility includes production, cooking, smoking and freezer space. This location is ideally positioned within the “Silicon Valley of Food & Beverage” near companies such as Mars, Wrigley, ConAgra and others. It is currently available for lease.
“We are pleased to announce the acquisition of these assets into our portfolio,” said Neil A. Johnson, Founder & CEO of Provender Partners. “Our proprietary database of available buildings shows close to zero supply of protein processing facilities currently on the market. The acquisition of a vacant protein processing plant in Illinois will be a perfect fit for protein processors seeking additional facilities and a labor pool to support it.”
In the last six weeks, Provender Partners has sold a $90M+ asset in Texas; leased a 267,000 SF building to Dollar General; and acquired an additional 220,000 SF of processing facilities in Illinois.
Provender Partners is the premier Food Related Industrial Buildings investor in the U.S. and the only investor 100% dedicated to FRIB. With real estate holdings throughout the United States, Provender Partners combines cutting-edge research and analysis with years of experience to ensure the best possible value for its clients in every facet of the FRIB business. In the past five years, Provender Partners has acquired nearly $500 million of refrigerated real estate totaling 5M SF; sold $430 million of property; and leased more than 4M SF to clients that include Sprouts, Hello Fresh and Kraft Heinz.