coldport-atlanta-llc-spv-investment-memorandum

Market Dynamics: The Southeastern Bottleneck

The Georgia logistics market operates as a dual-node system: Savannah imports the volume, and Atlanta distributes it to the rest of the Southeast and Midwest.

Savannah's Refrigerated Dominance

The Port of Savannah is a dominant force in the refrigerated supply chain, often handling the highest volume of refrigerated containers (reefers) on the U.S. East and Gulf Coasts.

• Unmatched Capacity: The Georgia Ports Authority (GPA) has aggressively expanded on-terminal capacity, recently upgrading infrastructure to power over 3,800+ refrigerated containers simultaneously.
• The "Fresh-Port" Strategy: Shippers are increasingly utilizing Savannah as a specialized "fresh-port" alternative to congested Northern hubs to rapidly route produce to the booming populations in Florida, Georgia, and the Carolinas.

The Inland Void

Despite Savannah's massive import capacity, the broader Atlanta/Georgia industrial market is currently undergoing a "recalibration." While general industrial vacancy rates in Atlanta ticked up to roughly 8.5%–8.7% in late 2025 due to a surge in speculative dry-warehouse construction, cold storage operates under entirely different dynamics.

The cold storage market in the Southeast requires massive upfront capital expenditure (CapEx) and highly specialized operational expertise. Consequently, there is a severe shortage of modern, multi-temperature, automated facilities required by top-tier grocery chains. Existing legacy facilities cannot accommodate modern high-bay racking systems or the throughput velocity required by e-commerce grocery fulfillment.

Coldport Atlanta LLC is stepping into this void, bridging the gap between Savannah's 3,800+ reefers and the dinner tables of the Southeast.

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Asset & Infrastructure Specifications

The Coldport Atlanta facility is designed for maximum throughput, utilizing advanced robotics to process high volumes of palletized cargo rapidly.

Metric	Specification
Total Square Footage	310,000 SF
Clear Height	55' (High-Bay Automation Ready)
Pallet Positions	45,000
Refrigeration System	Advanced Transcritical CO2
Automation	Fully integrated ASRS (Automated Storage & Retrieval System)
Dock Doors	65 (fully sealed, temperature-controlled docks)

ESG & Efficiency Engineering

In the high-heat, high-humidity environment of the American South, refrigeration efficiency dictates profitability.

• ASRS Density: By utilizing automated cranes rather than human-driven forklifts, we reduce aisle widths by 50% and maximize the cubic volume of the frozen envelope. This density drastically reduces the energy required per pallet.
• Rooftop Solar Array: A 2.5MW solar installation will offset peak afternoon cooling loads, effectively executing a daily "peak-shave" that avoids utility demand charges.

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Financial Projections & Capital Stack

The Atlanta SPV leverages the lower land costs of the inland corridor while commanding premium rents due to the specialized nature of the facility.

Projected Returns (Base Case)

Projections are based on a 5-year hold period with a terminal exit to an institutional core-plus fund or REIT.

• Target IRR (Net): 18.0% - 20.2%
• Equity Multiple: 2.4x - 2.8x
• Average Cash-on-Cash: 9.5% (Stabilized Year 2)
• Breakeven Occupancy: 38%

Capital Structure

• Total Project Cost: $65,000,000
• Senior Debt: 65% ($42,250,000) at 5.75% fixed.
• Sponsor Equity: 5% ($3,250,000)
• LP Equity (The SPV): 30% ($19,500,000)

[!TIP] Why the lower breakeven? Our heavy investment in ASRS robotics significantly increases upfront CapEx but drastically slashes ongoing OpEx (labor and energy). This lowers our break-even occupancy threshold to just 38%, creating a highly resilient downside-protection buffer for our LPs.

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Investment Timeline

Phase	Target Date	Milestone
Capital Call	Q1 2027	Initial SPV funding and debt closing.
Groundbreaking	Q2 2027	Site prep and foundation pouring.
Dry-In	Q4 2027	Roof and thermal envelope sealed.
Commissioning	Q2 2028	Refrigeration activation, ASRS calibration, and tenant move-in.
Stabilization	Q4 2028	90%+ occupancy achieved. First cash distributions to LPs.

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