MINKA DOUBLING IN SIZE OF LOCAL HUB

Concord, NC - The Minka Group, a nationwide supplier of decorative lighting, will more than double the size of its East Coast distribution hub here, building a 365,000-square-foot facility in The International Business Park at Concord.

The expansion is one of the largest for a Charlotte-area distributor in recent years. And it typifies the trend toward single-tenant-driven industrial growth, in contrast with the large-scale, multitenant speculative development of the 1990s, market watchers say.

"We have not seen a deal as big as (Minka's) in the last two years," says Frank Warren of real estate consulting firm Frank Warren & Associates. "Any time you see a deal over 200,000 or 250,000 square feet, it's a big deal. It's an indication that the industrial market may begin to rebound in 2003."

Minka, a California-based supplier of decorative and residential lighting, has outgrown the 162,000 square feet it occupies at SilverLake industrial park off Westinghouse Boulevard, says Dale Smith, manager of the company's East Coast distribution center, which opened here in August 1998.

The continued health of the residential market is a prime factor in the expansion, Smith says.

The 20-year-old company sells to boutique shops and large, mass-market retailers such as Lowe's Cos. Inc. and The Home Depot Inc. The company employs about 400 workers nationwide, including 43 in Charlotte.

Only one or two new hires are expected with the expansion.

Besides seeking additional local space, Minka decided to move to Concord to be closer to the showroom the company operates at the International Home Furnishings Center in High Point, Smith says. "Lighting is a fashion industry, and we have a very effective design group that is very good at keeping up with what our customers are looking for," he says. "We're going to have 450 new items introduced this year alone."

Says John Tarazona, Minka corporate controller: "The East Coast is a very big market for us and represents more than 50% of our business." Minka also is considering an expansion of its West Coast distribution center at the company's Corona, Calif., headquarters, Tarazona says. "Business has been growing for us, and we need larger facilities."

In moving its East Coast hub to Concord, Minka gains the advantage of being closer to Piedmont Triad International Airport in Greensboro, where air fares are typically less expensive than those at Charlotte/Douglas International Airport, Smith says.

Development costs for the new facility haven't been disclosed. Childress Klein Properties Inc. will own and develop the building, which Minka will lease. At 365,000 square feet, the Minka facility will be the largest operation in the 517-acre International Business Park, Interstate 85 at N.C. Highway 73.

"It's an exciting announcement to open the year," says Michael Schneider, vice president of the park's Boca Raton, Fla.-based developer, The Nolim Group. "It's an indication of the opportunities open not only for the park but for the region as a whole in the new year."

Key park tenants include electrical-wiring component manufacturer Pass & Seymour/Legrand, which operates a 360,000-square-foot plant there, and food distributor Sysco Food Services of Charlotte Inc., which has a 300,000-square-foot regional hub.

"The project fits exactly with the kind of economic development we find important," says Scott Padgett, Concord mayor. "They're going into an established business park. They obviously have good-paying jobs, and it's a clean industry."

Construction of the Minka plant may start by month end, with completion targeted for September. Shelco Inc. has been hired as general contractor, and Wagner Murray Architects is designing the building.

Landon Wyatt and Matt Harper represented Childress Klein in lease negotiations for the Minka relocation. Bob Percival of Transwestern Percival represented Minka.

© 2003 American City Business Journals Inc.