Birmingham, Ala.– December 9, 2021 – Leading diversified professional services and investment management company Colliers recently facilitated the lease of Provender Partners’ 486,353 square-foot industrial cold storage facility in Birmingham, Alabama. Senior Vice President Chris Cummings, Vice President Turner Wisehart and Associate Cater Cosgrove with the firm’s Food Advisory Services Group led negotiations alongside Director of Industrial Services Tripp Alexander and Senior Associate Joe Azar on behalf of the landlord. The building was leased to AFH Logistics, a low-risk, cost-effective provider of supply chain solutions, for a duration of ten years.
“We are pleased to support our longstanding client, Provender Partners, in the leasing efforts of what is one of the largest cold storage leasing transactions in the Southeast United States in recent years,” said Cummings.
The tenant, AFH Logistics, holds a contract with the U.S. Federal Government to provide food and equipment to areas affected by natural disasters and plans to use this building as a logistics center to carry out this work. The company intends to begin using the space in February 2022.
Provender Partners is an owner and investor of food-related industrial buildings. The company recently made an $8 million investment into this property which resulted in facility renovations and upgrades to the freezer and cooler distribution facility. The Birmingham facility is Provender Partners’ only food distribution center in Alabama and second in their Southeast portfolio. There are currently 22 real estate holdings in Provender Partners’ portfolio nationwide.
An array of industrial users surround AFH’s new facility located at 400 Industrial Avenue. The single-story warehouse zoned for industrial use and was originally built in 1988 and underwent renovations in 1995 and 2021. The building’s 486,353 square-foot footprint is easily divisible among multiple tenants and features a 34-foot clear heights, 95 dock high doors and glycol underfloor heat in the freezer areas. The building encompasses 22.78% of the property’s 49.01 acres which includes roughly 312 employee parking spaces and truck parking.
Cummings added, “The demand we are seeing for cold storage is quite active and underscored by the amount of speculative cold construction planned in the coming years and currently underway, increased investor and capital interest in cold storage, a continuing trend of compressing cap rates and significant rental rate increases on second generation cold space.”