Fort Worth-based MAG Capital Partners LLC, continues to accelerate its expansion into the hot – no pun intended – cold storage sector with its acquisition of a facility in Phoenix.
Led by principals Dax T.S. Mitchell and Andrew Gi, MAG Capital Partners announced that it has acquired 2721 W Willetta Street, a fully occupied cold storage warehouse property situated on 1.73 acres of land adjacent to major freeways.
Barnes & Thornburg LLP represented MAG Capital Partners and Matthews Real Estate represented the seller, Lin’s Distribution Corp, in the sale-leaseback transaction.
Built in 1980, 2721 W Willetta Street is a multi-tenant facility is fully occupied by Lin’s, Red Bird Farms Distribution Company and Bon Suisse, Inc., both of which are leaders in high order food fulfillment throughout the states of California, Arizona and Nevada.
Concurrent with the sale, Lin’s signed a long-term leaseback deal to continue to occupy the property.
“There is clearly a national surge in demand for cold storage facilities as online grocers work to meet the historic logistical transformation underway,” said Dax T.S. Mitchell, principal of MAG Capital Partners. “In completing this latest sale leaseback, we continue to grow our network of strategically located facilities in a vertical that cannot meet the demand for the evolution of more direct-to-consumer food delivery services.”
The deal comes as the global logistics sector undergoes dramatic change in the wake of significant shifts to the storage and distribution businesses for both perishable foodstuff as well as pharmaceuticals and medical supplies.
MAG Capital Partners continues to seek out flexible, climate-controlled assets within all U.S. markets, with established tenants, promising economic and demographic trends, and proximity to major population centers.
In recent months, the company has completed sale-leaseback transactions with food supply chain logistics operators in both New York and California. In July 2020, it acquired a baby food manufacturing facility operated by Initiative Foods, the largest private label baby food manufacturer in the United States. Earlier, MAG Capital Partners purchased 155 Balta Drive, Rochester, N.Y., which is fully occupied by a company that manufactures and distributes pie products to major national retailers.