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.