Developer Richard Tanenbaum is still stuck on Interstate 35 in north Oklahoma City.
Fresh off a $17 million industrial sale and 15 years after his first big splash, an industrial build-to-suit project for Ohio-based consumer tape maker Manco Inc., now ShurTech Brands, Tanenbaum has seen such success lately that he’s going purely speculative. ShurTech makes the popular Duck Tape.
He said he’ll have a 125,000-square-foot spec warehouse, his first, up by December at his Northgate Industrial Park at I-35 and Hefner Road across from Frontier City.
It’s because of the inventory of Class A space in his portfolio: zero. That and the lack of big Class A industrial spaces in town have him clearing and grading a site and preparing to tilt up concrete walls without a signed tenant.
“The timing is right for spec construction,” Tanenbaum said. “Vacancy is low, rental rates are increasing and there’s a continued demand for large, Class A industrial facilities.”
He saw the demand a year ago after signing another big project with ShurTech: a 280,000-square-foot distribution center a mile south of the first one, at I-35 and Britton Road. He said he had no worries about backfilling the 154,000 square feet ShurTech was going to leave behind at I-35 and Hefner.
If he had any doubts, they were gone by the first of the year.
“When news reached the market that ShurTech would be vacating the facility at Northgate, Crest Foods quickly seized the opportunity to lease the Class A distribution center,” said Brett Price, senior vice president of Newmark Grubb Levy Strange Beffort, which handles leasing and sales for Tanenbaum’s Gardner Tanenbaum Holdings.
ShurTech vacated one day and Crest took occupancy the next in February. Price said Crest vacated two Class B warehouses in Midwest City: 41,000 square feet at 724 S Air Depot Blvd. and 53,000 square feet at 8800 E Main St.
Tanenbaum’s recent big industrial deal was the $17 million sale of the new ShurTech center to Dallas-based Sealy & Co. Price said Sealy & Co., which had made several passes at possible investments here, found just what it was looking for at I-35 and Britton.
ShurTech has the space under a long-term lease of 15 years. The center features 36-foot clear-height ceilings and space to expand by 80,000 square feet. Price said Tanenbaum received multiple offers from out-of-state investors to buy the building.
Tanenbaum said he also plans to meet the demand for industrial build-to-suits with a new industrial park on 80 acres at I-35 and Britton. The spec venture at I-35 and Hefner is already underway.
“With its easy access to I-35 and Kilpatrick Turnpike, the location of Northgate appeals to a variety of distribution and warehouse users,” said Tanenbaum. “The North I-35 corridor is the current sweet spot for large industrial users.”