LM Real Estate Partners Acquires Fully-Leased Atlanta-Area Cold Storage Facility for $27.5M

Why It Matters

The acquisition expands LM’s temperature‑controlled logistics portfolio in a high‑growth region while giving Hungryroot a dedicated hub to scale its AI‑driven grocery service. It highlights rising capital interest in cold‑storage assets fueled by e‑commerce and food‑tech demand.

Key Takeaways

• LM Real Estate Partners bought 99,750‑sq ft cold storage for $27.5 M
• Facility fully leased to AI‑grocery platform Hungryroot as Southeast hub
• Hungryroot invested $6.3 M in refrigeration and handling equipment
• Colliers arranged financing and represented seller Jones Development

Pulse Analysis

Cold‑storage real estate has become a premium segment of industrial investing as online grocery sales and meal‑kit subscriptions surge. Tenants now demand highly automated, temperature‑controlled environments that can handle rapid turnover, prompting developers to build purpose‑fit facilities rather than retrofit existing warehouses. This shift is especially pronounced in the Southeast, where climate‑sensitive products require reliable refrigeration and logistics networks are expanding to serve a growing consumer base.

The LM Real Estate Partners transaction illustrates that trend. By purchasing a 99,750‑square‑foot, fully‑leased facility for $27.5 million, LM secures a stable cash‑flow asset anchored by Hungryroot, an AI‑driven grocery platform that has already poured $6.3 million into advanced handling systems and slab reinforcement. The lease structure provides LM with predictable income, while Hungryroot gains a mission‑critical distribution node that supports its algorithmic inventory management and same‑day delivery promises across the Southeast. Colliers’ involvement on both the sale and financing sides underscores the sophistication of capital markets surrounding temperature‑controlled logistics.

Looking ahead, the deal signals broader confidence among investors and lenders in the cold‑storage niche. As food‑tech firms like Hungryroot scale, they will continue to seek dedicated, technology‑enabled hubs, driving further construction and acquisition activity. For industrial REITs and private equity firms, targeting fully‑leased, high‑spec facilities offers a hedge against market volatility and aligns with ESG goals by reducing food waste through efficient cold‑chain management. The LM acquisition thus serves as a bellwether for continued capital inflow into climate‑controlled logistics infrastructure.

Deal Summary

LM Real Estate Partners bought a newly built 99,750‑sq‑ft cold storage facility in Hiram, GA from Jones Development for $27.5 million. The property is fully leased to Hungryroot, an AI‑powered grocery and meal‑delivery platform that has invested $6.3 million in the site. Colliers Capital Markets Advisors represented the seller and arranged financing for the buyer.