DALLAS, TX – January 20, 2016 – Holliday Fenoglio Fowler, L.P. (HFF) announced today that it has arranged $110 million in acquisition financing for a 456,412-square-foot, Class A, cold-storage warehouse and distribution facility in Richland, Washington, that is triple net leased to a wholly-owned subsidiary of Preferred Freezer Services.
HFF worked on behalf of the borrower, an affiliate of Lexington Realty Trust, to place the 10-year, fixed-rate loan with MetLife Agricultural Investments.
Completed in 2015, the facility, located at 2800 Polar Way, is the largest refrigerated warehouse in North America and largest automated freezer in the world. The 116-foot-tall facility has a total of 36,340,650 cubic feet of temperature controlled area (excluding office and mechanical/utility area), which consists of 312,755 square feet of freezer capacity that stores product at -10° F and 94,930 square feet of medium temperature mezzanine dock space. Additional building features include an 11,900-square-foot, two-story office; 6,492-square-foot, two-story equipment/utility room; and 30,335 square feet of mezzanine dock space. The facility is a state-of-the-art Automated Storage and Retrieval System (ASRS) building. Construction of this facility features a rack supported structure for the freezer and a steel frame; metal roof deck and load-bearing concrete walls for the medium temperature dock and the office; and perimeter steel and insulated wall panels around the freezer with a mechanically-attached TPO roof.
The building consists of 117,288 pallet positions operated by a Dematic Automation System that controls cranes, conveyors, monorail and specialized software. At the peak, the freezer has a wall height of 115 feet with an interior clear height of 108 feet allowing for approximately 11 stories of vertical product storage. There are 31 manually-operated dock high doors, four automated truck loading dock high doors and one grade-level door. The ASRS components are real property due to the integration and function of the systems in the facility. The property stores and distributes potatoes processed at ConAgra’s nearby Lamb Weston processing plant and is expected to move approximately two billion pounds of frozen products through the facility annually.
The HFF investment sales team representing the seller was led by senior managing director Mark West and managing directors Brandon Chavoya and Coler Yoakam.
About Lexington Realty Trust
Lexington Realty Trust is a real estate investment trust that owns a diversified portfolio of equity and debt interests in single-tenant commercial properties and land. Lexington seeks to expand its portfolio through acquisitions, sale-leaseback transactions, build-to-suit arrangements and other transactions. A majority of these properties and all land interests are subject to net or similar leases, where the tenant bears all or substantially all of the operating costs, including cost increases, for real estate taxes, utilities, insurance and ordinary repairs. Lexington also provides investment advisory and asset management services to investors in the single-tenant area. Lexington’s common shares are traded on the New York Stock Exchange under the symbol “LXP.” Additional information about Lexington is available on-line by contacting Lexington Realty Trust, Investor Relations, at www.lxp.com.
MetLife, Inc. (NYSE: MET), through its subsidiaries and affiliates (MetLife), is one of the largest life insurance companies in the world. Founded in 1868, MetLife is a global provider of life insurance, annuities, employee benefits and asset management. Serving approximately 100 million customers, MetLife has operations in nearly 50 countries and holds leading market positions in the United States, Japan, Latin America, Asia, Europe and the Middle East. For more information, visit www.metlife.com.
MetLife’s Agricultural Investments Department oversees an agricultural portfolio consisting primarily of mortgages for farms, ranches, food production, agribusiness and timberland. MetLife has provided agricultural financing solutions since 1917 and is one of the largest agricultural mortgage lenders in North America. MetLife has agricultural investments offices in Fresno, California; Overland Park, Kansas; Memphis, Tennessee; and a consulting office in Sao Paulo, Brazil.
HFF and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 22 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF.