coldport-miami-llc-spv-investment-memorandum

Market Dynamics: The Latin American Gateway

Miami is a unique logistics anomaly. Bounded by the Atlantic Ocean to the east and the Everglades to the west, developable industrial land is virtually non-existent, creating an impenetrable barrier to entry for new competitors.

The PortMiami Engine

In FY2025, PortMiami handled over 1.1 million TEUs (Twenty-foot Equivalent Units), marking over a decade of sustained volume above the million-TEU threshold. Crucially, PortMiami is the dominant entry point for:

• Chilean salmon and Peruvian asparagus
• Colombian and Ecuadorian cut flowers
• Central American winter produce

Simultaneously, MIA leads the nation in international freight, managing billions of dollars in temperature-sensitive biopharmaceuticals destined for Latin America.

The 5.2% Vacancy Squeeze

As of Q1 2026, the overall industrial vacancy rate in Miami hovered tightly between 5.2% and 7.2%. However, for modern cold storage space, the effective vacancy rate is functionally near zero.

A "bifurcation" has occurred in the Miami market:

1. Legacy Assets: Older facilities with low clear heights and inefficient ammonia systems are becoming functionally obsolete.
2. Modern Assets: High-bay, automated, multi-temperature facilities command massive rent premiums because they are the only assets capable of meeting the stringent requirements of modern pharmaceutical and grocery tenants.

Coldport Miami LLC is capitalizing on this exact bifurcation by bringing institutional-grade, modern capacity to an intensely supply-constrained geography.

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Asset & Infrastructure Specifications

The Coldport Miami facility is engineered to mitigate the unique challenges of the South Florida environment, specifically focusing on hurricane resilience and extreme ambient temperatures.

Metric	Specification
Total Square Footage	185,000 SF
Clear Height	50' (High-Bay Automation Ready)
Pallet Positions	28,000
Refrigeration System	Advanced Transcritical CO2
Structural Rating	Category 5 Hurricane Wind-Load Resistance
Dock Doors	35 (fully sealed, temperature-controlled docks)

ESG & Resilience Engineering

In Miami, sustainability and resilience are inextricably linked.

• Island-Mode Microgrid: The facility is equipped with a 2MW natural gas generator system and massive battery storage arrays, allowing the warehouse to maintain -20°F temperatures independently of the local grid for up to 14 days following a severe weather event.
• Solar Thermal Integration: Rooftop solar arrays offset the intense cooling loads required during the South Florida summer, drastically reducing operating expenditures (OpEx).

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Financial Projections & Capital Stack

The Miami SPV is structured to maximize tax efficiencies and capitalize on the intense rent growth forecasted for South Florida industrial assets.

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): 17.1% - 19.5%
• Equity Multiple: 2.3x - 2.6x
• Average Cash-on-Cash: 9.1% (Stabilized Year 2)
• Breakeven Occupancy: 45%

Capital Structure

• Total Project Cost: $48,000,000
• Senior Debt: 55% ($26,400,000) at 5.50% fixed.
• Sponsor Equity: 5% ($2,400,000)
• LP Equity (The SPV): 40% ($19,200,000)

[!TIP] Why Miami Rent Growth? Because you cannot manufacture more land in Miami, rent growth has historically outpaced inflation. We underwrite a conservative 4% annual rent bump, though recent historical averages in the market have exceeded 10%.

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Investment Timeline

Phase	Target Date	Milestone
Capital Call	Q4 2026	Initial SPV funding and debt closing.
Groundbreaking	Q1 2027	Site prep, deep foundation piling.
Dry-In	Q3 2027	Roof and thermal envelope sealed.
Commissioning	Q1 2028	Refrigeration activation and tenant move-in.
Stabilization	Q3 2028	90%+ occupancy achieved. First cash distributions to LPs.

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