March 08 2007
Roofing Company Buys Warehouse for $3.1 Million

Roofing company buys warehouse for $3.1 million

Photo by Jim Carchidi
Julio Cruz, forklift operator with Gulfeagle Supply, arranges supply pallets behind the company?s newest warehouse as branch manager John Sucin and driver Carlos Solomon discuss where to place a new shipment of roofing supplies.

A national roofing company bought a 60,000-square-foot warehouse in Orlando's Industrial Regency Park for $3.1 million.

Gulfeagle Supply, which distributes residential and commercial roofing and building products, purchased the space, located at 10705 Rocket Blvd., in January from commercial real estate investor Charles Frazee, who also owns a hotel renovation company. Frazee paid $2.4 million about a year ago for the building.

Gulfeagle relocated its North Orange Blossom Trail store to the larger new space, which now allows the company to service customers as far away as Winter Haven, says President and CEO Jim Resch.

"Everyone needs shelter," says Resch, who founded the company in Tampa in 1973 and now has more than 50 locations in the southeastern United States. "There's a strong demand for the product in Central Florida."

Limited industrial space

Gulfeagle originally wanted to lease space but couldn't find anything suitable, so Resch decided to buy a warehouse. He wasn't looking for such a large building, but there weren't many options available, says Resch: "We purchased more space than we need. We will occupy about half of that and lease out the rest."

The building, located off Central Florida Parkway near Florida's Turnpike, originally was listed by Duke Kroeger & Co. for $3.3 million. Resch's real estate consultant, Russell Rich of Keller Williams Realty, was able to shave $200,000 off the price, but he says the final price was probably still more than his client wanted to pay.

"I'd say it was an OK purchase," Rich says. "There really wasn't a lot out there."

Still, Resch believes the building's value will increase in the future. In fact, Gulfeagle's Orlando branch manager, John Sucin, says the firm plans some minor renovations, such as adding more offices and creating a lobby. He hopes to finish the renovations in two to three weeks.

Tough times for investors

Gulfeagle isn't alone in finding limited options.

Craig Duke, of Duke Kroeger & Co., says developable industrial-zoned property is hard to come by right now.

Another problem is a decrease in new construction of free-standing industrial structures, says Resch. "The high cost of the land makes it more economical to build multitenant warehouses," he says.

Frazee, who now owns five buildings in Regency Park and is under contract to buy another, agrees that when it comes to industrial buildings, the demand is definitely larger than the supply. "It makes it hard for investors," he says. "If you can find a building at a reasonable price, you snap it up."