Eckart Supply Company Inc.: 45,000 SF Industrial Acquisition in Lebanon, IN
Client Profile:
Eckart Supply Company, established in 1962 in Corydon, Indiana, is a leading electrical supply wholesaler with a robust presence throughout the Midwest and the South. Their operations span throughout Kentucky, Indiana, and the Atlanta Metro area. Eckart Supply Company’s annual revenue is more than $225MM and growing. Specializing in providing essential electrical products for contractors, Eckart Supply has become an indispensable resource in the construction and electrical industries. Additional information about their services and locations, can be found on their website.
Eckart Supply & Allies Partnership:
The partnership between Eckart Supply Company and Allies Commercial Realty began with Eckart’s need for a new facility in the Central Indiana region. Eckart had a sense of urgency to find the perfect property for their growing business and required a brokerage team that could deliver a positive outcome in a timely manner.
Objective:
Eckart Supply Company sought a versatile space ranging from 40,000 to 100,000 square feet, which could be utilized for warehousing, outdoor storage and provide easy access for their contractors. This new facility was monumental to support their growing operations and enhance service delivery to their customers in the area.
Opportunity and Challenge:
Eckart Supply was poised for expansion in Central Indiana. Allies was challenged to find a suitable property that met all Eckart’s needs, which included a property that allowed for outdoor storage of their electrical supply products, a warehouse large enough to accommodate their continued growth, a location that allowed for easy access due to their need for contractor pickup, and ideally situated in a high-growth market. The company’s broad search spanned several areas, including many submarkets throughout Central Indiana, reflecting their flexibility and commitment to finding the ideal location.
Analysis:
Allies Commercial Real Estate conducted a thorough market survey, presenting Eckart with multiple viable options for both purchase and lease. Despite the high market valuations driven by demand exceeding supply, our efforts focused on identifying cost-effective solutions that aligned with Eckart’s preferences and business needs.
45,000 SF Facility in Lebanon, IN
Our Success Story:
Strategic Acquisition in Lebanon, IN: Our collaboration culminated in securing a newly constructed 45,000 square foot building in Lebanon, which is home to the new LEAP Innovation District, halfway between Indianapolis and Purdue University. LEAP consists of 9,000-acres of ready to be developed land for advanced manufacturing, R&D facilities, and corporate campuses. There is 50+ biotech, pharmaceutical and life sciences companies within 30 miles of Eckart’s new facility. It is also located within 30 miles of the soon to be largest FedEx Hub in the world, along with the #1 ranked airport in the country, Indianapolis International Airport. Allies was also able to introduce Eckart to the construction team on site that was able to construct a sales counter for their contractor pickup area. This acquisition not only catered to Eckart’s specific needs but also positioned them advantageously in a rapidly developing market.
Market-Savvy Negotiation: We successfully navigated the market to secure the facility at 320 South Patterson Street for a 25% reduction from the asking price, a figure well below the going rate for new constructions in the region, which typically ranged between $135 to $150 per square foot.
Efficient Timeline Management: From initial engagement in October to final acquisition by the end of January, we facilitated a swift and efficient transition, enabling Eckart to meet their urgent timeline and commence operations in their new location without delay.
Conclusion:
Our partnership with Eckart Supply Company highlights our commitment to understanding and meeting the unique needs of our clients. By combining industry insight with strategic market analysis, we deliver real estate solutions that support operational goals and drive success. Eckart’s expansion is a testament to our dedicated approach and the positive outcomes we strive to achieve for all our clients.
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