About three years ago, MSI retained ComReal to assist in acquiring a warehouse for their new expansion into South Florida. “MSI’s preference was always to purchase a property.” stated Redlich. “However, most of the larger warehouses over 50,000 sq. ft. in South Florida are controlled by the institutions, so the properties are mostly for rent only, not for sale.” In 2009, ComReal had represented MSI in its lease acquisition of about 55,000 sq. ft. at Atlantic Business Center in Pompano Beach, owned by Duke Realty.

MSI’s new distribution warehouse in Deerfield Beach, South Florida

For the past several years, the ComReal team monitored both on and off the market warehouses that might be for available for sale. Redlich and Spear specialize in working with users of industrial properties. “First, we get a good understanding of our client’s needs.” states Spear. “Then we conduct comprehensive site selections looking for properties with the special features desired. In MSI’s case, in order to distribute their larger stone products, they required a ceiling height of at least 22′, column spacing over 40′ and a warehouse depth of 300′ or greater. Property owners and their respective brokers are frequently communicated with. Sometimes, we can identify a property before it even comes on the market.”

Although the subject property was primarily for lease, Redlich and Etner had a good relationship through their SIOR network. SIOR is the most prestigious industrial real estate organization with only less than 3,000 designees worldwide. After several weeks of negotiations, they were able to structure a satisfactory purchase and sale agreement with each of their respective clients. The closing price was $10,400,000 or about $87 per square foot. Although quite a few institutional investors expressed interest in purchasing the property, they did not pursue the warehouse because it is a single user property that would soon be completely vacant. However, MSI being a user for the entire building made it work.

M S International was established in 1975. They are the leading distributor of countertop, flooring, wall tile and landscaping products in North America. MSI today is the largest supplier of natural stone in the United States. Visit their website at www.MSIStone.com. MSI’s global operations include the following:

• Importing over 22,000 containers from 36 countries.
• Maintaining thirteen state-of-the-art distribution centers in Atlanta, Baltimore, Boston, Chicago, Dallas, Houston, New Jersey, Northern California, Phoenix, Southern California, Southern Florida, Seattle, and Toronto.
• Managing 50 million square feet of inventory including over 150,000 slabs.
• Integrating our worldwide network.

The South Florida warehouse space leased was 55,000 square feet and is ideal for warehouse distributors and importers. When compared to CoStar Realty’s 1st quarter industrial report of lease transactions, this deal is the largest industrial warehouse space leased in Broward County so far this year in 2010.

Visit MSI’s new warehouse store location in Pompano Beach, Florida at www.msistone.com/locations/pompanobeach.html or call 954-977-8984. MS International, Inc. is originally from India and their USA office is headquartered in Los Angeles, California. MSI contacted the ComReal warehouse team because of their expertise with importers and distributors with their South Florida warehouses. The Florida distribution center warehouse space was chosen due to its central location in South Florida, dock height loading, showroom space, frontage on Atlantic Boulevard and it already had an overhead crane installed with a fully recessed loading dock. MSI imports stone, granite, marble and other flooring, tile and building supplies materials from all over the world including these countries such as Africa, Angola, Canada, China, Egypt, Germany, India, Israel, Italy, Mexico, Peru, Philippines, Spain, Turkey, and more. They are one of the leading distributors and importers of natural stone in the USA with over 16,000 containers imported annually from over thirty-five countries and operate over fifteen warehouses across the globe.

“I was so impressed with MSI Stone and their website at www.msistone.com that I purchased over 400 sq. ft. of castle travertine tiles imported from Turkey.” states Ed Redlich. “The timing was perfect to get to know my new friends at MS International as I was renovating my own home. I always enjoy doing business with my customers and supporting them any way I can, including becoming a customer of theirs myself.”