By BRIAN BOHNERT
FOR THE COURIER
FOSTORIA — A $10 million real estate transaction involving a Fostoria warehouse was a surprise to city officials when it was announced Friday.
Industrial Property Brokers and Colliers International announced the completed sale of the 588,000-square-foot property.
The industrial property, at 130 W. Jones Road, was sold by Herb Krumsick of Wichita, Kansas, to an undisclosed buyer nearly three weeks ago. The name of the buyer has not yet appeared on county auditor’s records.
Tim Echemann, president of Industrial Property Brokers, and Norm Khoury, brokerage senior vice president with Colliers International, represented the seller in the transaction.
“There aren’t many buildings of that size available in today’s marketplace,” Echemann said Friday. “It’s quite an unusual product. The availability to pick up that much warehousing space, that’s the big plus for us as far as why that deal took place.”
Echemann said the building is likely going to be used for warehousing. As of now, current tenants Ohio Logistics and Keller Packaging will stay put.
“I don’t know that there are any plans to use the space for manufacturing, but I don’t know that I can say that there aren’t, either,” he said. “What I can say is this building is completely designed for warehousing. The sprinkler system, for example, is heavily pumped up. It has an (Early Suppression Fast Response) system, meaning it has its own pump to put out a lot of water in a short period of time.”
In addition to the high-powered sprinklers, the building also features 83 dock doors, two overhead doors, insulated steel walls, and a maximum ceiling height of 32 feet, the Fostoria Economic Development Corp. website states. It was built in 1984.
Krumsick, along with his other principal partners, Dan Carney, the founder of Pizza Hut, and Ken Wagnon, owner of Capital Enterprises, purchased the former home of Quality Farm & Fleet for $4 million in 2004 when it was vacant.
The investors quickly rehabbed the building. They painted it, laid new asphalt in the parking lots, replaced damaged sheet insulation, fixed and installed lighting, and completed other general maintenance.
About six months after Krumsick and his partners purchased the facility, the entire building was leased to Ohio Logistics and H.J. Heinz. However, following the economic downturn that occurred a few years later, there was space available in the building.
As of today, the property is 95 percent occupied.
“This has been a good investment for us,” Krumsick said. “We are very pleased that we were able to turn it around and fully lease the facility, and eventually sell it.”
Krumsick and his partners also owned a 448,000-square-foot warehouse at 110 E. Jones St., selling it last year to an investment group based out of Boston.
Fostoria Economic Development Corp. President Renee Smith said Friday she was unaware that the most recent sale had taken place and the property is still listed as “for sale” on the development agency’s website.
Mayor Eric Keckler said nothing regarding the transaction came through his office.
Echemann, who began working on the deal four months ago, said this is the first large property sale the community has seen in a long time and is a positive sign for more transactions going forward.
“I think it says a lot of the confidence in the Fostoria community for manufacturing and warehousing purposes,” he said. “When you have somebody putting $10 million into Fostoria, that makes quite a statement.”
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