National HVAC distributor R.E. Michel Company paid $3.5 million on Jan. 31 for a new warehouse in northwest Orlando to expand its local operation, buying the property from a chief competitor that also moved for expansion.
Located at 2450 Silver Star Road along what is known as "Contractors Row," the 4.25-acre parcel features a 58,000-square-foot warehouse that dates to 1970, with 14- to 24-foot clear heights and dock-high rear load access.
The seller was Silver Star Warehouse LLC, an investment affiliate of Charles J. Frazee, CEO of local hospitality renovations company Frazee Inc.
HVAC industry competitor Goodman Air Conditioning & Heating formerly occupied the building until last year, when it moved as well for expansion into an 88,000-square-foot warehouse at 4401 Shader Road.
The sale price was negotiated down from an original listing of $3.75 million in recognition of deferred maintenance, said Cory Kroeger of Kroeger Commercial, whorepresented the seller.
"This was a long-term investment for the next decade by R.E. Michel," he told GrowthSpotter. "Both companies were able to expand in their moves."
R.E. Michel has been operating out of a building less than a mile away at 2799 Eunice Ave., roughly half the size of its newly bought warehouse. The older property is now under contract for sale and scheduled to close later this month.