BGFP International secures $72 million to construct new cold storage facility in Jacksonville, FL

BGFP International, a strategic partnership between BG Capital, Saoud Development, and FreezPak Logistics, has secured $72 million in funding from Valley National Bank, the Israel Discount Bank of New York (IDB), and Nuveen Green Capital to develop a 275,000-square-foot cold storage facility in Jacksonville, Florida. Construction is underway and expected to be completed in November 2024.

The debt execution was originated by Tyler Huffman and Joseph Byrne of BG Capital, which consists of Valley National Bank and IDB contributing as the senior lenders and Nuveen Green Capital providing Commercial Property-Assessed Clean Energy financing (CPACE).

“Building constructive relationships with a mix of traditional and alternative-based lenders has been a focal point of BGFP International’s ability to arrange and close more complex capital stacks in turbulent debt environments,” said Tyler Huffman, Vice President of BG Capital. “We are extremely grateful to our partners at Valley National Bank and Nuveen Green Capital for their swift execution on this transaction.”

The facility, to be leased exclusively by FreezPak Logistics, spans over 20 acres, and will offer 53,000 new pallet positions with 212,000 square feet of freezer space and a 41,000-square-foot cooler dock, giving users access to blast freezing, cross-docking, transportation, repacking, overseas container plug-ins, and USDA inspections. The facility will also include 34 loading docks, 132 trailer parking stalls, 90 container plug-ins, and 67’ clear-height ceilings.

“I'm thrilled about our expansion into the Port of Jacksonville market. This new facility represents a significant milestone in our growth strategy to be in every major port in the US, allowing us to better serve our customers with enhanced logistics capabilities and streamlined operations. The Port of Jacksonville is a strategic location that aligns with our commitment to providing top-notch service and efficiency in the cold storage industry,” said David Saoud, Co-Founder and CEO of FreezPak Logistics and Saoud Development.

The Jacksonville facility will be BGFP International’s third built-to-suit location within their national expansion program, with a 172,000-square-foot cold storage facility in Philadelphia, Pennsylvania, and a 543,000-square-foot cold storage facility in Houston, Texas, to be built in two separate construction phases. BGFP International is committed to continue increasing cold storage facility availability nationwide in their efforts to further build a new supply chain infrastructure for the future.

“This project execution is a testament to the development team we have built here at BGFP International, combining the wealth of operational experience FreezPak brings with over 20 plus years of business in the cold storage third-party logistics space, with the seasoned development expertise of a nationally recognized commercial real estate developer in BG Capital,” said Joseph Byrne, Managing Partner of BGFP International.