Provender Partners Acquires Midwest Food Related Industrial Building Portfolio
Acquisition provides strategic opportunity to support distribution system critical to the food supply chain.
Provender Partners, a leading food-related industrial buildings investor, has acquired a 469,673-square-foot tri-temp distribution portfolio that serves as the Midwest food and convenience channel supply chain for Core-Mark, in a $23.975 million transaction.
The portfolio comprises a 435,968-square-foot warehouse and distribution center in Carroll IA, and a strategic network of six support facilities 100 percent leased to Core-Mark, one of the nation’s largest wholesale distributors to the convenience retail industry, and a unit of The Performance Food Group. The warehouse and distribution center is located on a 49-acre site at 1751 U.S. Highway 30 East and features 296,968 square feet of ambient warehouse, 95,118 square feet of cooler/freezer and 30,444 square feet of office space. It is central to the six cross-dock distribution buildings ranging in size from 2,500 to 4,000 square feet in Iowa, South Dakota and Minnesota, allowing for 24-hour delivery across Core-Mark’s 12-state Midwest service area.
“Meeting the various food user demand patterns around the country requires regional and diverse networks made up of a variety of different parts that can take years to assemble,” said Provender CEO and founder Neil Johnson. “This was a rare opportunity to acquire a complete distribution system critical to the food supply chain in the region that was 100 percent leased to a national credit tenant like Core-Mark.”
The transaction follows an active year for Provender Partners which acquired two million square feet of food-related industrial buildings in 2021 increasing its total assets acquired since inception to 6.5 million square feet. It is the second significant Midwest acquisition for Provender in the past three months. In late October the firm acquired a 570,000-square-foot warehouse and distribution facility in Chicago for $30 million. The firm also expanded its geographic footprint making its first investments in Alabama, Iowa, Nevada, New Jersey and Utah.
The portfolio was marketed for sale on behalf of the seller by Dick Powell, vice president of CBRE. Provender was represented by Matt Bear of Bear Real Estate Advisors.