Lenders close $52M deal for new California cold storage
New cold storage is coming to Madera, California.
Affiliates of X-Caliber Capital recently closed a combined $52 million transaction for the construction of Origo Cold Storage, a state-of-the-art 254,000-sq.-ft. temperature-controlled facility expected to commence operations in April 2023.
X-Caliber Rural Capital provided $35 million through the U.S. Department of Agriculture’s Food Supply Chain Program, and CastleGreen Finance provided $17 million in Commercial Property Assessed Clean Energy (C-PACE) financing through the California Statewide Communities Development Authority PACE Program, the commercial real estate lender reported.
“We are pleased to provide long-term financing for a much-needed facility to the robust almond growing industry,” said Jordan Blanchard, X-Caliber Rural Capital co-founder and executive manager. “The combination of this USDA Food Supply Chain Loan plus C-PACE financing provides a competitive lending solution that supports energy efficiency, the creation of permanent jobs, and overall economic growth in the Madera community.”
The project is expected to create up to 10 new full-time jobs, X-Caliber said.
Origo is designed to save the borrower a total of $3.7 million over the lifetime of the improvements through reducing electricity usage by 138,909 kilowatt-hours per year, saving 11,462 gallons of water annually, and reducing CO2 emissions by 98 metric tons per year.
Almonds are harvested within a three-month period and require storage until they are used by processors. The new facility’s financing supports a unique pairing of competitive loan terms, cost savings, and environmental sustainability, the companies said.
“CastleGreen is pleased to participate in this project that allows C-PACE to double down on community benefits by helping promote environmental and food supply chain advantages,” said Sal Tarsia, managing partner at CastleGreen Finance. “The state-of-the-art facility will incorporate features that significantly reduce greenhouse gas emissions, decrease water and energy consumption, and passes along substantial cost savings to the borrower.”
The C-PACE funds will be used for various energy efficiency and resiliency improvements to be installed on site. USDA loans offer innovative solutions to eligible borrowers in rural areas with competitive terms through five dedicated flagship programs that support infrastructure improvements, business expansion, community facilities, public safety, renewable energy, and more, with the goal of increasing private investment in rural America. A rural area is defined as primarily serving rural areas with populations of 50,000 residents or less based on the last census and not contiguous with an adjacent populated area.
Through the Food Supply Chain Guaranteed Loan Program, USDA has partnered with lenders to guarantee loans of up to $40 million to help eligible entities expand meat and poultry processing capacity and finance other food supply chain infrastructure. Lenders may provide the loans to eligible cooperatives, corporations, for profits, nonprofits, Tribal communities, public bodies and people in rural and urban areas.
