BGFP International, which is a strategic partnership between BG Capital, Saoud Development and FreezPak Logistics, announced June 4 it has secured $72 million in funding from Valley National Bank, the Israel Discount Bank of New York and Nuveen Green Capital to develop a 275,000-square-foot cold storage facility in Jacksonville.
Construction is underway and expected to be completed in November 2024.
The city issued a permit Jan. 16 for FreezPak Logistics to build a 274,692-square-foot cold-storage facility in North Jacksonville at a project cost of $48.88 million.
The project, part of the cold-storage movement in Jacksonville, comprises 212,000 square feet of freezer space, a 43,680-square-foot loading dock, a 9,728-square-foot office and utility and mechanical space, according to the permit.
Industrial Building Group of Marshfield, Massachusetts, is the contractor for the project, which is in development at 8730 Somers Road about a half-mile east of the Jacksonville Zoo and Gardens.
The contractor’s website, industrialbuildinggroup.com, said development began in August 2023. The city issued the site-clearing permit Aug. 17, 2023.
The debt execution was originated by Tyler Huffman and Joseph Byrne of BG Capital, comprising Valley National Bank and IDB contributing as the senior lenders and Nuveen Green Capital providing Commercial Property-Assessed Clean Energy financing.
“Building constructive relationships with a mix of traditional and alternative-based lenders has been a focal point of BGFP International’s ability to arrange and close more complex capital stacks in turbulent debt environments,” said Huffman, vice president of BG Capital, in the release.
FreezPak Logistics will be the exclusive tenant. The facility spans more than 20 acres and will feature 53,000 pallet positions with 212,000 square feet of freezer space and a 41,000-square-foot cooler dock. It provides blast freezing, cross-docking, transportation, repacking, overseas container plug-ins and USDA inspections.
The facility will include 34 loading docks, 132 trailer parking stalls, 90 container plug-ins and 67-foot clear-height ceilings.
“This new facility represents a significant milestone in our growth strategy to be in every major port in the US, allowing us to better serve our customers with enhanced logistics capabilities and streamlined operations. The Port of Jacksonville is a strategic location that aligns with our commitment to providing top-notch service and efficiency in the cold storage industry,” said David Saoud, co-founder and CEO of FreezPak Logistics and Saoud Development, in the release.
The Jacksonville facility will be BGFP International’s third built-to-suit location within their national expansion program, with a 172,000-square-foot cold storage facility in Philadelphia and a 543,000-square-foot cold storage facility in Houston to be built in separate construction phases.
BG Capital is a Pennsylvania-based commercial real estate investment and development firm specializing in mixed-use, multifamily, medical office and industrial assets nationwide. Partners Joseph Byrne and Daniel Govberg established it in 2012.
FreezPak, founded in 2001, is a family-owned business with headquarters in Carteret, New Jersey, providing customized distribution services.
Established by the founders of FreezPak Logistics, Saoud Development serves as both the property owner and joint-venture developer of cold-storage facilities for FreezPak.
The release said the Saoud brothers leading the venture have been instrumental in designing sites strategically positioned within key port markets across the United States with expertise in securing funding for the facilities with advanced technology, automation and high-speed distribution.