JV Teams Up for $76M Houston Cold Storage Facility

The team of BG Capital and FreezPak Logistics has been funded $75.9 million  to finance the construction of a new cold storage facility outside Houston, TX, to be leased by FreezPak Logistics. PGIM Real Estate has provided $25.9 million in construction mezzanine financing on behalf of its structured debt lending strategy, and Bank OZK provided $50 million in senior construction financing for a total debt package of $75.9 million for the project. The total estimated capital investment from the newly formed partnership is estimated to be just over $100 million. 

The approximately 282,000-square-foot building is located within TGS Cedar Port, one of the largest master-planned rail and barge industrial parks in the U.S. The industrial park houses several Fortune 500 companies, including Walmart, Home Depot, and Sam’s Club. The plans for development feature state-of-the-art building specifications, cooling equipment, power, hydrogen fuel cell charging stations, and machinery.