Saxum Real Estate tops $1B in total capitalizations in 2023

Saxum Real Estate on Tuesday said the Summit-based firm closed out 2023 as its most successful year to date, exceeding $1.05 billion total deal capitalizations across its platform.

The investments span the country and include nine projects, totaling 18 buildings that encompass more than 3.7 million square feet of cold storage, industrial and multifamily assets.

Saxum, the most active developer of cold storage industrial assets in the U.S., continued the aggressive expansion of its cold storage platform by capitalizing over $600 million in cold storage investments in 2023.

The firm continued its growth in the Southeast, capitalizing the development of a 262,000-square-foot cold storage facility in Charleston, South Carolina. In addition, the firm is close to completing its 333,725-square-foot facility in Jacksonville, Florida. Both projects feature state-of-the-art design standards and are strategically located in port-centric locations with access to major highway systems for regional distribution.

Additionally, within its cold storage vertical, Saxum, along with its capital partner BGO, completed recapitalization of five projects, including seven buildings that total approximately 1.7 million square feet of Class A cold storage space, developed by Saxum, through four separate transactions.

Each of the newly built, state-of-the-art cold storage assets features 50-foot clear heights, ample dock space and dock doors to expedite distribution and container handling services, and convertible rooms at each facility with temperature capabilities between -10 to 38 degrees Fahrenheit.

The assets are located in major distribution hubs with significant unfulfilled cold storage demand: Phoenix, Atlanta, Reno, Nevada, Hazleton, Pennsylvania, and Dallas-Fort Worth. Permanent debt financing for the Atlanta, Dallas-Fort Worth and Hazleton assets was provided by PGIM Real Estate and by QuadReal for the Phoenix and Reno locations.

Within its industrial vertical, Saxum, in partnership with Morgan Stanley, closed a seven-building, 1.2 million-square-foot light industrial portfolio in East Hanover, marking the largest industrial real estate transaction in the Garden State for 2023 at $217.5 million. Fully occupied by 13 tenants, the portfolio includes a 21-foot average clear height and 945 parking spaces. This portfolio aligns with Saxum’s industrial strategy, which is focused on the development and acquisition of institutional-quality industrial properties in supply-constrained core and growth markets primarily along the East Coast and Texas.

As part of Saxum’s multifamily platform, Saxum fully capitalized its 466-unit, Class A multifamily development in the heart of Northern Liberties, Philadelphia, a four-minute walk to the Spring Garden subway station. The construction financing was provided by Corebridge Financial, who also provided the $77.5 million construction loan for the first phase of the project earlier in the year and recently completed the $55.7 million phase two construction loan. The project will feature luxury market rate apartments, with one of the most well-amenitized buildings in the city. Features for residents within the complex include well curated restaurant and retail space, on premises resident coworking, café, outdoor pool, state of the art fitness/wellness center, club rooms, courtyard and rooftop decks, outdoor kitchen space overlooking the Delaware River, pet care facilities, as well as onsite parking.

“Saxum continues to push the boundaries of many sectors in our industry and, while the last 18 months have proven to be the most challenging real estate investing environments since the (global financial crisis of 2007-09), Saxum continues to excel and chart a path forward regardless of the economic cycle,” Anthony Rinaldi, Saxum founder and managing principal, said. “I am incredibly proud of the extraordinary tenacity and grit the entire Saxum team has shown during this time, resulting in our most successful year to date. The commitment and dedication from our partners and team has made all of our successes possible and we look forward to continuing our mission together in 2024.”

Over the course of these transactions, JLL served as an adviser to Saxum, working in various capacities, including equity and debt as well as investment sales. The JLL advisory team that worked with Saxum in the various transactions included Marc Duval, Jose Cruz, Michael Klein, Tom Didio, Ryan Ade, Jordan Avanzato, Nick Stefans, Jason Lundy and Austin Pierce.

“Saxum’s ability to source opportunities, develop, reposition real estate and operate to institutional standards speaks to their deep knowledge and execution expertise,” Duval, managing director at JLL, said. “We are continually impressed by the exceptional results and trajectory of Saxum. The recent capital commitments are a testament to their dedicated and hard-working team.”