Lebanon Valley Cold Storage, at 2750 Hanford Drive in North Lebanon Township, was sold earlier this month for $24.5 million to Miami-based cold storage investment company Scout Cold Logistics.
The property transfer was recorded with the county on Dec. 12. The transfer was submitted with a $1 consideration and the property was taxed on a computed value of $13.9 million. The $24.5 million purchase could include other assets in addition to the actual real estate; still, the state has oversight over any discrepancies in purchase price and could later ask the company to pay additional real estate transfer tax, said county recorder of deeds Dawn Blauch.
Landmark Commercial Realty CEO Jason Grace represented the seller, Blue Ridge Capital LLC, along with colleagues Darren Smith and Mike Rohm.
Blue Ridge Capital had purchased the 22.83-acre parcel in 2016 from the Lebanon Valley Economic Development Corp. for approximately $1.4 million. The climate-controlled facility that stands there today features nearly 98,000-square-feet of floorspace, 12 docks, one drive-in door, and 42-foot clear height ceilings. The facility was designed with the plan of expanding to nearly double its size on the current footprint.
“This transaction marks the largest sales transaction of the year and underscores the sustained demand and growth potential in the cold storage industrial property market,” said Grace in a press release.
Lebanon Valley Cold Storage currently operates as a single-tenant building, with private equity-backed Murry’s – Bake Crafters having recently signed a 10-year triple-net lease for the space, according to the listing. (In a triple-net or NNN lease, the tenant assumes responsibility for costs associated with the building, such as utilities, taxes, insurance, and maintenance.)
Scout, which bought the property through holding company Scout Cold Storage Lebanon Hanford LLC, provides investment, management, and leaseback services focused on the cold storage sector. Its total investments globally in industrial and cold warehouses exceeds 80 million square feet, according to its website.
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