May 12, 2025 – In April 2021, CenterSquare entered into a joint venture with Boomerang Interests, which owned a 22.5-acre site located within the heavy-haul corridor of The Port of Houston. The property was to be developed into a 315,111 square foot speculative state-of-the-art cold storage facility. Due to significant interest in the transaction, CenterSquare opened up the investment to select partners seeking co-investment opportunities. In August 2022, prior to completion, the venture entered into a long-term net lease agreement for the entire building with one of the largest cold storage operators in the world, Lineage Logistics. This lease contained an option to purchase the property outright two years from lease commencement. The tenant exercised this option and closed on the purchase in April 2025.
ARCO Design/Build, an industry leader for cold storage projects, was tasked with designing and constructing the property, which features 50’ clear heights, 38 fully automated dock positions, a 200-foot-deep truck court and the capacity to accommodate up to 40,000 pallet positions. The facility also features ALTA EXPERT refrigeration systems, vertical storing hydraulic dock leveler equipment, LED lighting throughout and a Tyco Quell dry fire sprinkler system.
In September 2022, development was completed on time and under budget making the property one of the first direct asset transactions by an institutional investment manager into speculative development of a temperature-controlled logistics facility in the United States.
“This investment demonstrates the advantage of CenterSquare’s public/private platform,” said Victoria Madrid, Vice President of Private Equity Real Estate. “Through strategic information sharing across our public and private businesses, we were able to develop a high conviction investment thesis for the cold storage sector, identify Houston as a strategic cold storage market and then execute that strategy to create meaningful value for investors.”
