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Hilco Real Estate Announces the Bankruptcy Sale of A USDA-Certified 31,000± SF Cold Storage Facility in Michigan

Mar 23, 2018

 USDA Certified Cold Storage Facility for Sale

Hilco Real Estate LLC announces April 19, 2018 as the Auction Date for the sale of a USDA-certified 31,000 SF cold storage facility set on 34 acres of land in the heart of Michigan’s fruit country.

The property is one of two former fruit processing facilities owned by Grawn, MI-based Cherry Growers Inc., being sold as part of their ongoing bankruptcy case. Originally constructed in the 1960’s, the site features a one-story structure that includes office space, restrooms, loading docks and refrigerated/freezer space.  The property was expanded in the 1980’s in the form of a new loading dock area.  Approximately 75% of the total building is dedicated to freezer/cooler storage, and offers ceiling heights ranging from 18-24’.  Additional onsite structures include a 2,160 SF two-story farmhouse, a 1,680 SF maintenance shop, and a 290 SF masonry-constructed scale house.  The facility also includes a DEQ permit that currently allows for the discharge of 20,000 gallons of waste water per day and 500,000 gallons per year.  

Given the site’s ammonia cooling system, this facility is an ideal operation for an end user with refrigeration/freezer needs.  Set on over 34 fertile acres, the property offers abundant space for future expansion or additional farming.  The additional outbuildings could be configured to offer fruit and wine tasting, shopping and dining options for tourists.  For the opportunistic buyer, this property offers upside potential, whether as a turnkey operation or a distinctive tourist attraction.

Named the number two small town travel destination in the United States, Traverse City features a variety of natural attractions, including freshwater beaches, vineyards, a National Lakeshore, downhill skiing areas, and numerous forests that make it a year-round destination.  Known as “Cherryland” or the “Cherry Capital of The World”, the Traverse City area is the largest producer of tart cherries in the United States.  Each year the city hosts the annual week-long National Cherry Festival in the first full week of July, attracting approximately 500,000 visitors annually. In addition to cherries, Traverse City is a major producer of grapes and apples. Being a center for wine production in the Midwest, there are 125 wineries to choose from, with four certified American Viticulture Areas across the state.

With all that Traverse City has to offer, in 2016 Forbes named it one of the 25 best cities to retire in.  Tourism is a significant economic driver in Traverse City.  In 2012, over 3.3 million tourists visited the area. These trips resulted in over $1.18 billion dollars in direct spend and $1.23 billion in economic activity.  This impact is reflected in a growth rate of 4.5% for Traverse City.  Increasing visitor demands have led to a wave of development as more people than ever have been visiting the area.

Found in Michigan’s Lower Peninsula, Traverse City benefits from its proximity to the water. Sitting at the Grand Traverse Bay, the city is rewarded from its location all year round. Natural attractions like the beach dunes, the national forest, and the lakefront keep people flocking to the area, with the population of Traverse City growing 17% since the year 2000.

The property is well positioned near scenic Bay Shore Drive, and offers easy access to numerous state and local routes, as well as Interstate-75, 50 miles to the east. Additionally, Cherry Capital Airport is situated approximately 12 miles to the southeast of the property. These transportation options, together a strong economy and growing population make Traverse City an ideal climate for businesses to thrive.

Jeff Azuse, Senior Vice President of Hilco Real Estate stated, “The sale of this facility represents an excellent opportunity for an end user or investor to acquire a turnkey, highly-desirable cold storage facility that can distribute across the region. Traverse City’s complementary business setting and strong tourism industry create a welcoming environment for any business to set up shop.”   

The Sealed Bid Auction is scheduled for Thursday, April 19, 2018; however, bids prior to the auction date are encouraged. Bids must be delivered to the offices of Hilco Real Estate on or before 5:00 p.m. (CST) on the day of the deadline, together with the required $20,000 in earnest money, to be considered. On-site inspections will take place March 30 and April 13 at 9:00 a.m. For more information regarding property viewings, please contact Steve Madura directly at smadura@hilcoglobal.com. Interested buyers can submit their bids via mail to the following address: Hilco Real Estate, 5 Revere Drive, Suite 320, Northbrook, IL 60062, or via email to smadura@hilcoglobal.com.

For further information on the property, an explanation of the sale process and Terms of Sale, and to obtain access to the Virtual Deal Room containing all the property due diligence, please visit HilcoRealEstate.com or reach out to (855) 755-2300.

For more information about this or other properties available for sale, please visit HilcoRealEstate.com.

About Hilco Real Estate

Hilco Real Estate (“HRE”), a Hilco Global company (HilcoGlobal.com), is headquartered in Northbrook, Illinois (USA). HRE is a national provider of strategic real estate disposition services. Acting as an agent or principal, HRE uses its experience to advise and execute strategies to assist clients in deriving the maximum value from their real estate assets. By leveraging multi-faceted sales strategies & techniques, aggressive repositioning and restructuring experience, a vast and motivated network of buyers and sellers, and substantial access to capital, HRE exceeds expectations even in the most complex transactions.