BGO Supplies $74M Construction Loan for Florida Cold Storage Facility
By Andrew Coen January 24, 2024 11:59 am
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Related Fund Management has sealed $74 million of construction financing to build a cold-storage facility in central Florida, Commercial Observer can first report.
BGO provided the loan on Related’s planned 368,000-square-foot property in Auburndale, Fla., to be operated by RealCold, a national cold-storage provider backed by Related.
Newmark (NMRK) arranged the transaction with a team led by Jordan Roeschlaub and Dustin Stolly alongside Nick Scribani.
Located at 5900 Mount Olive Road, the cold-storage facility will be situated 42 miles southwest of Orlando along Interstate 4. A groundbreaking for the RealCold Auburndale project was held Jan. 18.
RealCold plans to open 10 cold-storage facilities by the end of 2025, the Wall Street Journal reported in October. The Related affiliate spent around $150 million on its first two cold-storage warehouses in Lakeland, Fla., and Lockhart, Texas, according to the WSJ.
Keith Goldsmith, CEO of RealCold, said the relationship with Related has instrumental in helping the company grow.
“Other than the fact that they have big chops on being able to secure financing if that’s necessary, they also happen to be really, really good at developing buildings, especially complex ones,” Goldsmith told CO. “We’re really leveraging the Related Fund Management teams’ expertise in that area.”
Officials at Related and BGO did not immediately return requests for comment.
Andrew Coen can be reached at acoen@commercialobserver.com
