Permanent Loan - Acquisition
- 6,600,000 cf Frozen Food Warehouse
- Chicago, IL
Axiom Capital Corporation announces the closing of a $23,100,000 permanent loan for the acquisition of a cold storage warehouse in Chicago, IL. The 10 year, non-recourse loan was closed at a fixed rate and demonstrated a 70% Loan to Value and a 1.55x Debt Service Coverage amortized over 30 years.
The subject property is a 6.6 million cubic foot storage warehouse that was constructed in 2003 by Preferred Freezer Services. Preferred Freezer opened in 1989, and has since grown to hold more than 214 million cubic feet of warehouse space in the US & 260 million cubic feet globally, ranking the company as the 3rd largest North American cold storage company and the 4th largest in the world. Currently, the company operates ~40 facilities world-wide with more than 1,300 employees and close to $200 million in annual sales.
The warehouse is HACCP certified facility equipped with -10 to -20 degree storage space, 16 loading docks with wrapped temperate control, 60 foot clearance height, an R-22 Freon refrigeration system, 100% diesel backup generator that is capable of running the entire facility for weeks at a time, quality assurance laboratories for sampling and 24 hour security.
The warehouse is situated on a six+ acres site in the “Central Chicago” neighborhood which is considered to be one of Chicago’s strongest industrial area in 2014 with only 4.5% vacancy. The site is a strategic location less than a mile to I-55, slightly over a mile from I-90, two miles to I-290, & less than 3 miles from Lake Michigan. The property is directly adjacent to millions of SF of complimentary industrial space in one Chicago’s busiest industrial corridors, the Chicago Canal, this allows it to be a shipping link between the Mississippi River & the Great Lakes region.