Trinity Street Capital Partners (TSCP), a full service real estate investment bank, announces the origination of a $4MM, 75% loan-to-cost, bridge loan for the acquisition of a state of the art self cold storage facility located in Houston, TX.
NEW YORK, NY, January 26, 2018 /24-7PressRelease/ — Trinity Street Capital Partners (TSCP) (www.trinitystreetcp.com), a full service real estate investment bank, announces the origination of a $4MM bridge loan for the acquisition of a cold storage facility, located in Houston, TX. The bridge loan was for 75% of cost, was a Prime Rate based loan, interest only and had an 18 month term. TSCP, marshalling staff and resources, was able meet the buyer’s three week closing time frame, resulting from certain seller tax matters. The facility will be owner occupied by a frozen food distribution company that services the southeastern United States for various prominent grocery chains.
Houston is the most populous city in Texas and the fourth-most populous city in the United States, with a census-estimated 2016 population of 2.303 million. It is also the largest city in the Southern United States and its economy has a broad industrial base in energy, manufacturing, aeronautics, transportation, health care and oilfield equipment. Houston has the second most Fortune 500 headquarters of any U.S. municipality within its city limits (after New York City) and Port of Houston ranks first in the United States in international waterborne tonnage handled and second in total cargo tonnage handled. Houston is a global city, with strengths in business, international trade, entertainment, culture, media, fashion, science, sports, technology, education, medicine, and research.
Cold storage warehouse investment is booming, as demand for e-commerce and online grocery delivery grows. As grocery chains look to keep up with Amazon Fresh and other online-to-door food delivery services, by establishing a distribution network to transport perishables, cold storage units are critical for this objective. Since the global financial crisis, temperature-controlled warehouse units have benefited from cap rate compression as warehouse values have skyrocketed, CoStar reports. Currently, market caps in the booming segment range between 7.5% and 8.25%, according to Cushman & Wakefield and recently private equity firms have also shown a strong interest in the property type.
Blackstone Group recently entered into an agreement with Cloverleaf Cold Storage, in which Cloverleaf plans to restructure the company’s debt with Blackstone’s assistance, funded by Goldman Sachs, as reported by CoStar. This is Blackstone’s second attempt to enter the temperature-controlled warehouse sector. It had attempted a buyout of Americold Corp., the largest cold storage warehouse owner and operator in the world, in September of 2017, though Americold declined the $3B bid and filed an initial public offering in order to form a new REIT, Americold Realty Trust.
Trinity Street Capital Partners focuses on non-recourse, high leverage senior & subordinate non-recourse commercial mortgages, construction loans and real estate private equity, with investments starting at $5MM on income producing retail, office, industrial, multifamily, manufactured housing communities, self-storage and hospitality properties located throughout the fifty states.
For more information about Trinity Street Capital Partners and the services it provides, go to www.trinitystreetcp.com.
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