Plans are underway for the development of an $85 million Port Richmond Cold Storage project in Philadelphia. In a bid to build a cold storage distribution network across the U.S, BG Capital and FreezPak Logistics formed a partnership. However, this initial phase of the two-phased project is just part of a broader $1 billion development plan. The developers are targeting port-centric markets, with the aim of easing the strain on the country’s current storage capacity.
FreezPak’s CEO, Mike Saoud, said the speculative cold storage market is currently unable to meet the needs for automation. But this Joint Venture between their companies would ensure that their cold storage services reach clients across the U.S. As stipulated in their agreement terms, BG Capital will build over 200 million cubic feet of cold-storage warehouses. While, on the other hand, FreezPak will lease these new cold chain facilities on a long-term basis.
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Development plans for the Port Richmond Cold Storage project
The Port Richmond Cold Storage facility will be developed on a 7-acre site located at 2201 E. Allegheny Ave. Next month a groundbreaking ceremony will be held to mark the start of construction on this 170K SF facility. The new facility will be the first among the five or six facilities planned for the first phase of development. Construction on Phase I is expected to be completed in the next 3 years. Thereafter, the remaining cold-storage facilities will be completed in the ensuing years.
Besides the Port Richmond Cold Storage facility, plans have also been made for the next two facilities in phase I. These cold storage facilities will be located in Houston and Jacksonville. The Jacksonville Cold Storage is estimated at $116 million and is intended to be a 272K SF warehouse facility. Ideally situated at Somers Road in North Jacksonville, its location offers convenient access to JaxPort Talleyrand and Dames Point marine terminals. FreezPak al applied for a $3M property tax rebate on this development, through the Recapture Enhance Value Grant.
