HILCO REAL ESTATE CLOSES TRANSACTION OF $17+ MILLION COLD STORAGE FACILITY SALE IN TEXAS
Northbrook, ILL. – Hilco Real Estate, LLC, (HRE) was chosen as part of a competitive process by Alamo Dynamic, LLC, a private equity-backed food producer, to monetize a turnkey, USDA-certified, cold storage facility located in Lubbock, Texas. The property consisted of 224,000± SF across five buildings set on 16.38 sprawling acres.
The pandemic took its toll on the company, as Dynamic Foods’ main contractual partner, Furr’s Fresh Buffet, filed for bankruptcy in spring of 2021. Without this partnership, the facility was only running at about 20% capacity, which led to the ownership’s decision to sell the facility and all its associated assets.
Due to the property’s tertiary location, the existing specialized buildout of the facility, environmental challenges and a tight deadline, the seller was uncertain of the ultimate recovery a sales process could yield.
HRE immediately implemented a targeted national marketing campaign that, in just under three months, garnered over 80 direct inquiries from sophisticated buyers (many who were end users), nine tours with well-qualified groups and three viable offers. HRE conducted a multi-phased, competitive offer process in which the ultimate price exceeded $17,000,000, far beyond the initial anticipated sale price.
During the due-diligence period, the buyers came across an unknown environmental issue with the potential to delay the closing. Hilco Global institutional knowledge regarding mitigating environmentally challenged properties proved invaluable. The team developed a unique phased closing strategy to accommodate the seller’s need for a quick sale and the buyer’s desire to begin retrofitting the facility on a specific timeline. The phased closing plan also allowed the seller to responsibly address the ongoing remediation prior to transferring the impacted parcel to the new buyer.
Chet Evans, a vice president at Hilco Real Estate, said of the sale, “We are thrilled that the sale will allow the buyer to utilize the highly sought-after cold storage component of the facility, and more importantly, provide jobs to the area, many that were lost when the previous operator closed its doors. Simultaneously, our strategic sale process allowed the seller to maximize the property’s value, limit time and costs typical in conventional sale processes, and thoughtfully address the environmental obstacles that could have otherwise thwarted the sale.”
For more information on how Hilco Real Estate brought our speed-to-value approach to this successful sale, visit the property’s case study page. To view other active industrial listings with Hilco Real Estate, please visit our website.
About Hilco Real Estate: Hilco Real Estate, LLC ("HRE"), a unit of Hilco Global, is headquartered in Northbrook, Illinois. HRE is a national provider of accelerated real estate disposition services for corporations, lenders, servicers, receivers, bankruptcy attorneys, estates, private owners, investment companies as well as local, state, and federal government agencies. Acting as an agent or principal, HRE applies its vast experience to advise and execute strategies, helping both healthy and distressed clients to derive maximum value from their real estate assets. By leveraging multi-faceted sales strategies and techniques, aggressive repositioning and restructuring experience, a vast and motivated network of buyers and sellers, and substantial access to capital, HRE exceeds expectations even in the most complex transactions.
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