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Commercial Property

Interstate Cold Storage on I-95

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bed 4
bath 2
area 1774 Sqft
year 2024
$2,269,900 Purchase Price i This is your custom tooltip message!
$1,995 Rent / Mo i THE INFORMATION WILL POP UP HERE ON HOVER
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9.5% Anticipated Yield i This is your custom tooltip message!
High Investment Risk i This is your custom tooltip message!
9.3 / 10 Expert Rating i This is your custom tooltip message!
4.8 / 5.0 Review i This is your custom tooltip message!
$1000

Minimum quantity for "Interstate Cold Storage on I-95" is 10.

About Seller
Customer 1 Customer 2 Customer 3
New customers come to your store increased by +78%
Founded: 1961, family-owned
Markets: NJ, NY, PA for 60+ years
Growth: 1,000+ employees, 60+ locations
Services: Electrical, solar, contractors, utilities, and more
Total Revenue
$10,850.10
Visit Store
Offering Details

Vendor transferred his property’s deed to a new LLC and is selling a portion of the LLC on the AskLego Marketplace. 

The property is the only asset owned by the LLC. 

The FOS (Fractional Ownership Share) represent direct ownership in the LLC that owns the property. Vendor will maintain atleast 10% ownership in the LLC indefinitely. 

View proof of Vendor ownership prior to the title transfer and proof of the title transfer. View the LLC Documents here

Common Questions
How Arrived works +

Arrived acquires rental properties into an LLC and sells shares in that LLC to the general public. Arrived then manages the day to day operations including finding tenants and completing repairs. Investors receive cash dividends from rental income each quarter and capture any property value appreciation.

What returns can I expect +

Investing in Arrived rental properties can deliver returns to investors in two different ways:

  • Expected dividends: From the rental income on each property; currently paid out to investors monthly.
  • Appreciation: From the change in property value that will be realized at the end of the investment hold period.
What to expect if my property is still seeking a tenant +

We are currently focused on marketing the rental homes to prospective tenants and will email you when a new lease has been signed. Arrived's strategy for seeking tenants is focused on signing 2 year leases, achieving market rent, and thoroughly vetting applicants. Though it may take a bit more time to lease out the homes, we believe these standards provide our investors the best way to maximize returns over the long term.

Diversification +

With real estate, it can be beneficial to invest in multiple properties and markets to achieve portfolio diversification. Diversifying your portfolio can be a good way to reduce exposure to risk from an individual property, tenant, or market forces.

Investing horizon & liquidity +

Currently investors will need to plan to hold their shares for the full investment period until the property is sold and investors are paid their proportional proceeds from the sale. We anticipate establishing a mechanism to facilitate secondary trading in accordance with the rules and regulations of the U.S. Securities & Exchange Commission (SEC) as an option for liquidity during the investment period, however there can be no guarantee when that will be available. Please submit your email if you would like to be notified of future developments.

Arrived strives to give investors the opportunity to build wealth through real estate. Historically, real estate returns have been maximized when treated as a long-term investment over multiple years. Arrived property offerings typically have a 5 year minimum investment period before a property would be sold.

Disclaimer +

There is currently no public trading market for our Interests, and an active market may not develop or be sustained. There is no guarantee that appropriate regulatory approval to permit such secondary trading will ever be obtained. If an active public trading market for our securities does not develop or is not sustained, it may be difficult or impossible for you to resell your shares at any price before the end of the investment period. Even if a public market does develop, the market price could decline below the amount you paid for your shares, and there may be fees involved. Please refer to our offering circular for more details regarding potential distributions.

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Interstate Cold Storage on I-95
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Overview

Interstate Cold Storage Warehouse, a leading name in temperature-controlled storage solutions, is expanding its operations to capitalize on the growing demand for cold chain logistics. This new state-of-the-art facility is strategically located on the bustling I-95 corridor, ensuring seamless connectivity to key distribution centers and markets. The investment opportunity allows participants to own fractional shares of the warehouse, combining asset-backed security with equity-like returns.

Benefits of Investment

  1. Steady Rental Income: Investors can earn passive income from rental agreements with reputable clients in industries like food, pharmaceuticals, and retail.
  2. Capital Appreciation: The facility’s location and the industry’s growth trajectory offer potential for long-term asset appreciation.
  3. Tax Advantages: Potential depreciation benefits and other tax-saving opportunities are available to fractional owners.
  4. Diversified Portfolio: This investment adds a low-risk, high-growth asset class to your portfolio.
  5. Resilient Industry: Cold storage is a critical component of the supply chain, ensuring high demand irrespective of economic cycles.

Industry Outlook

  1. Market Growth:
    • The global cold storage market size was valued at $138 billion in 2022 and is projected to grow at a CAGR of 10.7>#/strong### from 2023 to 2030.
    • The U.S. is a key market, driven by the rise in e-commerce grocery and pharmaceuticals.
  2. Demand Drivers:
    • Increase in online food delivery and e-grocery services.
    • Expansion of the pharmaceutical cold chain, especially with biologics and vaccines.
    • Regulatory requirements for temperature-sensitive goods storage.
  3. Regional Advantage:
    • I-95 is a vital economic corridor with proximity to ports, urban centers, and distribution hubs, ensuring strong demand for cold storage.

SWOT Analysis

Strengths:

  • Strategic location on I-95 ensuring high logistics demand.
  • Established brand reputation in cold storage.
  • Advanced technology integration for energy-efficient operations.

Weaknesses:

  • High upfront capital expenditure for facility construction.
  • Dependence on tenant contracts for revenue stability.

Opportunities:

  • Expansion into untapped markets along other key U.S. highways.
  • Rising demand for environmentally friendly and sustainable cold storage solutions.

Threats:

  • Competitive pressure from established cold storage operators.
  • Regulatory changes impacting operational costs.

Risk Assessment

  1. Market Risk: Demand fluctuations are minimal in the cold storage industry due to its critical role in supply chains.
  2. Operational Risk: The reliance on technological systems could pose risks of downtime, but Interstate Cold Storage has a strong track record in maintenance and reliability.
  3. Financial Risk:
    • Interest rate fluctuations may impact financing costs.
    • Fractional ownership may dilute returns if operational inefficiencies arise.
  4. Regulatory Risk: Compliance with local zoning laws and environmental regulations is mandatory but manageable.

Conclusion

Investing in the new Interstate Cold Storage Warehouse on I-95 offers an excellent opportunity to participate in a high-demand, recession-resistant industry with promising growth potential. Backed by a trusted brand, this fractional ownership allows investors to reap the benefits of steady rental income and long-term asset appreciation, supported by industry fundamentals and a strategic location.

For more information, visit Interstate Cold Storage's website.

Investment Strategy Hypothetical Returns

Single Family Residential

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Investing with Arrived can generate returns in 2 ways:
  1. Annual cash flow from the rental income on each property. The property intends to pay out excess cash to investors monthly.
  2. Annual appreciation returns from any changes in property value. Any appreciation returns net of disposition costs will be paid out upon the sale of the property.
Anticipated Annual Cash Flow


Annual Rent
$26,340
Operating, Financing, Legal & Management Expenses
$9,584



Cash Flow / Dividend
$16,756



Raise Amount
$398,950

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