$75 Million Cold Storage Development Construction

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $75 million cold storage development construction loan typically finances a 250,000 to 400,000 square foot trophy refrigerated warehouse facility. Most $75M cold storage developments fund through specialty industrial debt funds, build-to-suit lender programs, or institutional construction debt.

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What a $75M Cold Storage Development Capital Stack Looks Like

$75M cold storage development stacks combine senior construction debt with institutional equity, often with built-to-suit anchor tenant.

Capital Source Rate / Cost Size / LTV Notes
Specialty industrial debt fund SOFR + 425 to 600 $75M / 65 to 75% LTC Construction; non-recourse
Bank balance sheet SOFR + 325 to 475 $75M / 55 to 65% LTC Sponsor recourse
Build-to-suit institutional Long-term lease structure 100 percent capital Tenant-funded build-to-suit
Institutional equity Equity (target IRR 16 to 25%) $25M to $35M Cold storage / industrial equity

Pricing reflects active CLS CRE quote pipeline as of April 2026. Specific deal pricing depends on sponsor, property, and structure.

Who Closes a $75M Cold Storage Development Deal

Typical $75M cold storage development sponsors are institutional cold storage operators (Lineage Logistics, Americold) or vertically integrated cold-chain food distributors with operating expertise.

A Real $75M Example

On an $82M ground-up 320,000 sq ft Class A refrigerated warehouse with build-to-suit lease to a credit-tenant food distribution operator, the sponsor was an institutional cold storage developer. Construction debt at SOFR + 475 (10 percent all-in), 70 percent LTC ($57.4M), with 15-year triple-net lease at delivery.

Anonymized. All deal references protect borrower and lender identity.

$75M Cold Storage Development FAQ

Cold storage construction runs $200 to $400 per square foot versus $80 to $150 for standard industrial. Trophy Class A cold storage in Sun Belt markets at the upper end.
Yes substantially. Build-to-suit with credit-tenant pre-lease supports tighter pricing and broader lender appetite versus speculative cold storage construction.

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