Permanent Loan - Acquisition
- 8,900,000 cf Cold Storage Facility
- Chicago, IL
Axiom Capital Corporation announces the closing of a $38,000,000 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 1.46x Debt Service Coverage amortized over 30 years.
The subject property is an 8.9 million cubic foot cold storage warehouse that was constructed in 2009 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, 17 loading docks with wrapped temperate control, 60 foot clearance height, an R-22 Freon refrigeration system, 100% diesel backup generator, quality assurance laboratories for sampling and 24 hour security. It is situated on a 9+ acre parcel in Chicago’s “Midway” neighborhood, considered to be one of Chicago’s strongest industrial areas in 2014 with only 6.82% vacancy. The site has a strategic location less than a mile from I-55, five miles to I-90/I-94 and I-290 & seven miles from Lake Michigan. The property is directly adjacent to millions of SF of industrial space in one of Chicago’s busiest industrial corridors. The Chicago Canal allows it to be one of the shipping links between the Mississippi River and the Great Lakes region.