Goldman Sachs, Morgan Stanley provide $1bn warehouse financing

Goldman Sachs and Morgan Stanley have reportedly provided $1 billion of mortgage financing against a portfolio of 42 refrigerated warehouses that Lineage Logistics owns across the nation.

Goldman Sachs and Morgan Stanley have reportedly provided $1 billion of mortgage financing against a portfolio of 42 refrigerated warehouses that Lineage Logistics owns across the nation.

The two-year debt replaces a $655 million loan on the 10 million sq ft portfolio that was securitized through CSMC Trust 2014-ICE  and scheduled to mature in April.

Lineage.Exterior.Sign_.small_The portfolio includes temperature-controlled warehouses across 16 states, with the largest concentrations in Texas, Illinois, and Georgia, with over 400 customers.

In a report from June of last year affirming CSMC Trust 2014-ICE’s ratings, Fitch Ratings noted that portfolio “demonstrated resilient cash flows and occupancy levels throughout various economic cycles.”

Among its current initiatives, the California-based company plans to boost its footprint across the Pacific Northwest to over 93 million cb ft of temperature-controlled warehousing space with the expansion of its Tacoma, Washington cold storage distribution facility. Opening of the expansion is planned for sometime later this year.

Back in 2014,  the company also assumed at least 30 properties through its purchase of Millard Refrigerated Services of Omaha, Nebraska.

Owned and managed by the investment firm Bay Grove Capital, the company boasts the world’s second largest refrigerated warehouse network of over 600 million cb ft, according to data from the International Association of Refrigerated Warehouses.

Commercial Real Estate Direct first reported on the financing. Goldman Sachs, Morgan Stanley and Lineage Logistics did not respond to requests for additional comment in time for publication.

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