Texas-Based Real Estate Developer Proves Cold Storage Remains a Hot Investment
Cold Creek Solutions, a Dallas-Fort Worth-based developer of industrial cold storage buildings, in partnership with Invesco Real Estate, a global real estate investment manager, recently developed and sold two, new, state-of-the-art fully convertible cold storage facilities totaling more than 700,000 SF in Denton and San Antonio, Texas. The facilities provide the rapidly growing state of Texas with much needed temperature-controlled space along the I-35 corridor as a lack of inventory and aging infrastructure have left many tenants seeking strategically located options that are larger and more efficient. Cold Creek Solutions broke ground on the first facility in Denton in late summer 2021 followed by the San Antonio facility in early 2022 and immediately received a high-level of interest from local and national cold storage users.
"We were confident that Texas provided the best environment to develop these two buildings in. 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," said Matt McWilliams, President and Managing Partner of Cold Creek Solutions. "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."
In addition to proving that the largely underserved cold space was desperate for new options in fast growing markets like Texas, the Cold Creek team also proved it was adept at completing these projects during severe supply chain disruptions that caused many projects to suffer long delays and cost overruns. Cold Creek Solutions partnered with design-build 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. 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," said McWilliams. "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."
"From the beginning, Cold Creek Solutions prioritized speed-to-market. 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," said Brian Westre, and Principal for ARCO National Construction. "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."
Terms of the deals were not disclosed but McWilliams expressed that all parties are very happy with the outcomes. Cold Creek Solutions is currently planning more projects in multiple major markets across the U.S.