Cold storage developer establishes two Texas facilities
A Dallas-Fort Worth-based industrial cold storage developer and its real estate partner recently established and sold two fully convertible facilities in Texas that combined boast more than 700,000 sq. ft. of temperature-controlled space.
The developer, Cold Creek Solutions, says the facilities in Denton, Texas, and San Antonio will provide the growing state with “much-needed” cold storage along the I-35 corridor, where a lack of inventory and aging infrastructure have left many tenants seeking strategically located options that are larger and more efficient.
Cold Creek and partner Invesco Real Estate broke ground on the Denton facility in summer 2021 and the San Antonio facility early last year.
Terms of the deals were not disclosed.
“We were confident that Texas provided the best environment to develop these two buildings in,” Matt McWilliams, president and managing partner of Cold Creek, said in a news release. “From the moment we broke ground in Denton, we saw an incredible influx of leasing inquiries, ranging from local to national tenants starved for new space in the state.
“We were able to sign a market-leading, long-term lease with a half-building user before we had erected any walls in our first building—which is extremely rare on speculative builds in the cold space.”
The deals prove the cold space is “desperate” for new options, said Cold Creek, which also partnered with general contractor Arco National Construction on both projects.
“We are extremely proud of the fact we were able to deliver two state-of-the-art facilities in this challenging environment with minimal delays and below budget,” McWilliams said. “Cold Creek was very fortunate to have a great partner in our general contractor, Arco, that worked tirelessly with us to help deliver these buildings on time.
“We also would not be in this position today without the help of Invesco Real Estate. They were instrumental in providing guidance as we navigated challenging financial and supply chain markets, and we could not be more thankful for their partnership.”
Cold Creek said it currently is planning more projects in multiple markets across the U.S.
“From the beginning, Cold Creek Solutions prioritized speed-to-market,” said Brian Westre, principal for Arco. “They were one of the first to commit to spending capital on making the spaces fully convertible to allow someone to ‘adjust the thermostat’ and move right in. As a design-builder with extensive cold storage experience, Arco was able to help Cold Creek navigate design decisions, material escalations, and supply chain disruptions to deliver the facilities on schedule without sacrificing the best-in-class quality they were looking for.”
