coldport-philadelphia-llc-spv-investment-memorandum

Market Dynamics: The Philadelphia Perishable Gateway

Philadelphia (PhilaPort) is not a standard logistics market; it is the dominant artery for temperature-controlled imports into the Eastern Seaboard.

Unprecedented TEU Volume

In 2025, PhilaPort handled over 740,000 TEUs (Twenty-foot Equivalent Units), with refrigerated cargo accounting for a disproportionately high 58% of that volume. Specifically, Philadelphia is the #1 port in the United States for:

• Chilean and Peruvian winter fruit imports
• Australian and New Zealand beef and dairy
• European pharmaceutical cold-chain imports

Despite this massive influx of temperature-sensitive cargo, the average age of existing cold storage facilities in the Greater Philadelphia region exceeds 42 years. These legacy facilities suffer from inadequate clear heights (often below 24 feet), outdated ammonia refrigeration systems, and crippling energy inefficiencies.

The "Middle-Mile" Vulnerability

Currently, imported perishable goods arrive at PhilaPort and must be immediately trucked 30 to 80 miles inland to reach the nearest available cold storage warehouse (often in Central Pennsylvania or Southern New Jersey). This mandatory transit creates the Middle-Mile Vulnerability:

1. Drayage Costs: Inland trucking adds $600 - $900 per container.
2. Temperature Excursions: Every hour a container spends on the highway increases the risk of product spoilage.
3. Turnaround Delays: Port congestion and truck driver shortages delay product to market by 24-48 hours.

The Coldport Solution: Our facility is situated on-terminal. Containers are offloaded from the vessel and moved directly into our temperature-controlled envelope within minutes, completely eliminating the inland drayage cost and mitigating temperature risk.

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Asset & Infrastructure Specifications

Coldport Philadelphia LLC is developing a state-of-the-art, multi-temperature facility designed specifically for high-velocity cross-docking and blast freezing.

Metric	Specification
Total Square Footage	215,000 SF
Clear Height	50' (High-Bay Automation Ready)
Pallet Positions	32,500
Refrigeration System	Advanced CO2 (Natural Refrigerant)
Temperature Zones	Convertible (-10°F to +55°F)
Dock Doors	45 (fully sealed, temperature-controlled docks)
Land Lease Term	35 Years (with 2x 10-year extensions)

ESG & Sustainability Engineering

Coldport is committed to a Net Zero 2035 target. The Philadelphia asset integrates:

• Solar Thermal Envelope: 1.2MW rooftop solar array offsetting 40% of peak load.
• Natural Refrigerants: Utilizing transcritical CO2 instead of toxic ammonia, eliminating regulatory risk and reducing insurance premiums.
• Regenerative Power Capture: Battery storage systems to execute peak-shaving during high-cost grid hours.

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Financial Projections & Capital Stack

The Philadelphia SPV utilizes a highly tax-efficient structure, leveraging municipal bond financing for the debt component, drastically lowering our blended cost of capital.

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): 16.5% - 18.2%
• Equity Multiple: 2.1x - 2.4x
• Average Cash-on-Cash: 8.5% (Stabilized Year 2)
• Breakeven Occupancy: 42%

Capital Structure

• Total Project Cost: $42,500,000
• Senior Debt (Municipal Bond): 60% ($25,500,000) at 5.25% fixed.
• Sponsor Equity: 5% ($2,125,000)
• LP Equity (The SPV): 35% ($14,875,000)

[!TIP] Why Municipal Bonds? Because our facility sits on port authority land, we qualify for tax-exempt infrastructure bonds. This gives Coldport a structural 200-300 bps debt cost advantage over standard private developers.

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Investment Timeline

Phase	Target Date	Milestone
Capital Call	Q3 2026	Initial SPV funding and debt closing.
Groundbreaking	Q4 2026	Site prep and foundation pouring.
Dry-In	Q2 2027	Roof and thermal envelope sealed.
Commissioning	Q4 2027	Refrigeration activation and tenant move-in.
Stabilization	Q2 2028	90%+ occupancy achieved. First cash distributions to LPs.

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Request Full Memorandum

To request the comprehensive Private Placement Memorandum (PPM), detailed financial projections, the full environmental impact report, and the operational thesis, please contact our Investor Relations team directly through the Secure Portal.

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