FORT WORTH—The COVID-19 crisis has pushed the US food supply system to its limit. However, cold storage is the critical behind-the-scenes component holding it together, according to Alex Langerman, COO of Cold Summit Development.

In March 2020, the Department of Homeland Security classified cold storage facilities and those employees as essential infrastructure, to allow those facilities to remain open and operating through the peak of pandemic. Ultimately, the frontline workers in this sector prevented widespread food shortages across the country.

A recent South Fort Worth transaction exemplifies the demand for cold-storage facilities. CIM Group acquired Junction 20/35, an industrial property of approximately 1.128 million square feet consisting of cold and dry storage, and an adjacent 14.42-acre parcel located at 7550 Oak Grove Rd.

The multi-purpose facility has been renovated several times, most recently in 2018, and provides freezer and cooler space. Built in 1989, the purpose-built facility has added clear heights and column spacing, loading bays, a truck court, car and trailer parking, and rail accessibility.

Junction 20/35 is located within strong transportation networks including Interstate 20 and Interstate 35, which provides access to other areas of Texas and the greater Southern United States as well as to three airports, DFW International, Alliance and Love Field. The property is also close to rail transportation and two major intermodal facilities, BNSF Intermodal Facility and Alliance Global Logistics Hub.

"Junction 20/35 is well located for a variety of logistic operations including a distribution point for the last mile of delivery in a densely populated district as well as regional hub for businesses moving products along the neighboring highways and railways or through nearby airports," Terry Wachsner, principal of real estate services of CIM Group, tells GlobeSt.com. "In addition to its convenient location, Junction 20/35's dry and cold storage is ideal in providing a solution to meet the increased demands for prompt and efficient food distribution."

Cold storage is the infrastructure and real estate subsector consisting of large refrigerated warehouses. These warehouses store the nation's fresh/frozen produce and protein while it moves from farmer to processor, wholesaler to distributor and direct to consumer.

Though cold storage is far from top of mind for most people, it is a vital component of the food supply chain. Indeed, the experience of COVID-19 has changed the outlook for cold storage as an asset class, according to Cold Summit's Langerman. While it had been gaining momentum among investors, the COVID crisis has propelled cold storage to the forefront, with future demand augmented by three key trends emerging from the pandemic: increasing inventory levels, shifting global food flows and automation, says Cold Summit Development.

Instant Insights /

1.1M SF Cold Storage Facility Serves as Last Mile Distribution Point

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