W P Carey acquires cold storage facilities
Mar 12, 2007 9:00 AM
Investment firm W P Carey & Co LLC has completed the acquisition of three cold storage facilities in the Atlanta GA market, which it will lease back to Nordic Cold Storage LLC on a triple net basis. The purchase was made on behalf of W P Carey's affiliated income generating real estate fund, Corporate Property Associates 16-Global Inc.
Nordic is one of the largest public warehouse operators in the southeastern United States and among the top 10 operators in North America. Serving the region for more than 50 years, Nordic provides temperature-controlled handling, storage, freezing, distribution, and transportation services. Through its network of 14 refrigerated warehouses, the company owns and operates about 60 million cubic feet of warehouse capacity, or approximately 20% of the total public refrigerated warehouse cubic footage in the area. It blast freezes more than 800 million pounds of product annually.
In 2006, United States consumers purchased more than $26 billion in frozen foods--up 20% from 1998. In addition, 96% of restaurant owners and 100% of quick-service owners use frozen foods in their operations. Nordic, acquired by Houston TX-based private equity firm Wareing, Athon & Co in 2000, has catered to this trend for more than 50 years.
