Press 2008

McNeely family, Meritex are the first recipient of Minnesota Family Business of the Year Award

October 22, 2008 - The Harry G. McNeely, Jr. family and their company, Meritex, has been honored as the first recipient of the Minnesota Family Business of the Year Award.

The new award, sponsored by several local businesses including Bremer Bank and Grant Thornton, celebrates and recognizes outstanding family-owned firms in Minnesota.

“Minnesota’s economy is fueled by an unknown number of family-owned firms who quietly do their best, day in and day out, and even across generations, to serve their customers, communities and employees,” said Tom Hubler, president of Hubler Family Business Consultants, a sponsor of the award.

“Even some of the area’s largest firms remain invisible except to their families, clients and friends. We’d like to change that by recognizing excellence in family-owned firms like Meritex and the McNeely family who has owned it through three generations, with a fourth standing in the wings.”

Originally founded in 1916 by Harry McNeely, Sr. as St. Paul Terminal Warehouse Company, the company has evolved into a national real estate company, Meritex, with 9 million square feet of property and 200 tenants in eight markets. Meritex is governed by a third generation CEO (and founder’s grandson) Harry (Paddy) G. McNeeley III, with his father, Harry G. McNeely, Jr. active on the company’s board. 

“We are honored to be recognized by this award,” says Paddy McNeely, who owns the company along with other family members. “It’s good to reflect on where we’ve come from as an organization.” McNeely credits the foresight of his father, Harry G. McNeely, Jr., who encouraged his children to seek family business education, a practice of open communications with shareholders and an active board of both family and non-family members.

“Meritex has earned returns that substantially exceed both our shareholders’ targets and industry benchmarks, thanks to the focused efforts of our board, employees and the multigenerational outlook of our shareholders,” McNeely said.

Candidates for the Minnesota Family Business Award were evaluated in four key areas: family involvement in the business, including history and extent of family member involvement; business success, such as revenue and profitability; community involvement and giving back to the community; and a positive family/business structure, reflecting the family’s ability to maintain a healthy balance between business and family.

Family-owned businesses represent approximately 95 percent of all U.S. companies; they generate more than 50 percent of the gross national product and are the source of most new employment. Even though their success is the backbone of our economy, 70 percent of family businesses fail to maintain themselves as family businesses from the first to the second generation, and only 23 percent make it to the third generation.

“As Meritex and the McNeely family approach their 100th anniversary in 2016, they continue to be an exemplar of family business success and a model for all family businesses,” Hubler said.

Corporate sponsors of the award include Bremer Bank, Grant Thornton, Gray Plant Mooty, Hubler Family Business Consultants, James J. Hill Reference Library, Lilja Inc. and Minnesota Business Magazine. Future plans call for awards to be made annually. 

Meritex Enterprises Announces Multi-Tenant Industrial Development in Noblesville, Indiana

June 24, 2008 – Noblesville, Indiana - Twin Cities based Meritex Enterprises, Inc. announces the purchase of 51.8 acres for a multi-tenant industrial development project in Noblesville, Indiana.  The Noblesville Business Center will consist of seven office/warehouse buildings totaling 537,000 square feet with construction of the first building planned to begin in January, 2009.  “We are excited to be a part of the growth along the 146th Street corridor in the heart of the Noblesville Corporate Campus”

Jeremy Woods of Summit Realty Group represented Meritex in the acquisition and will be responsible for leasing the project. “Meritex has honed its focus to a very specific product type – medium distribution and office/warehouse buildings.  There is no better place to own this product type than the northeast submarket of Indianapolis – and Noblesville Business Center is the most fertile soil within the northeast to grow this type of portfolio,” commented Jeremy Woods.

Meritex Acquires Cumberland Business Center, Atlanta, GA

June 5, 2008 – Atlanta, Georgia - Meritex Enterprises announced the purchase of the Cumberland Business Center, a two-building 168,078 square foot, Class A office/warehouse complex located at 1700 & 1750 Enterprise Way in Marietta (Atlanta), Georgia.

Meritex is committed to expansion in the Atlanta market, and now owns ten buildings totaling over 755,000 square feet.  The purchase is consistent with Meritex’s strategy to build portfolios of multi-tenant industrial properties in targeted markets such as Houston, Atlanta, Indianapolis, Minneapolis and Columbus.  “This acquisition will allow us to continue to better serve our customers and their ever-changing business needs,” commented Dan Ward, director of acquisitions.

Meritex Leases Westbelt Spec Building Ahead of Schedule

April 17, 2008 – Columbus, Ohio – Meritex Enterprises announced today that it signed the final lease for its 52,800 SF speculative development, Exchange Center II, in Westbelt Business Park, achieving 100% occupancy within 14 months of building completion.  Exchange Center II is now serving the needs of five local and national businesses.

Jill Evans, Columbus Portfolio Manager for Meritex stated, “It’s about delivering the right product in the right market at the right price.” Meritex owns 1.7 million SF serving 57 tenants in the greater Columbus area, including Gahanna, Groveport, and Rickenbacker. The leasing success Meritex has achieved in Columbus illustrates its understanding of the unique needs of the smaller user.

RjBoll Realty, LTD. exclusively represented Meritex in leasing Exchange Center II.  Ray Boll commented, “I’m proud to be a part of the success of the first spec building developed in Westbelt since 1980.  Exchange Center II leased even faster than we projected,” to which Jeff Boll added, “If you believe in the building you represent, you can lease it faster to quality tenants. We believe in this product and in the continuing strength of the Westbelt sub-market.”

Meritex Leases Rogers, Minnesota Building to 100%

March 25, 2008 - Roseville, Minnesota,  – Meritex Enterprises announced today that it has leased 71,148 square feet to Profile Companies, Inc. at the Weber Building located at 13251 George Weber Drive in Rogers, Minnesota, bringing the property to 100% occupancy. 

Profile Companies, started in 1989 by Steven DeJong, specializes in powder coating services for metal, wood and MDF products used in retail displays, office furniture, consumer products and more.  Unlike conventional liquid paint, powder coating does not require toxic solvent to keep the pigment in a liquid suspension form. This eliminates the need for using, storing, and disposing of dangerous, environmentally harmful chemicals.  Steven DeJong commented, “The Meritex Weber Building and management are well suited for our growing business.  Meritex and Profile Companies make a good match.”

Steve Dorff, Property Manager, stated, “Profile’s space in the Weber Building more than doubles their former operation, and Meritex is excited to assist in Profile’s growth in the Rogers market.” Meritex currently owns two properties totaling 386,000 square feet in the Rogers, Minnesota market, as well as an additional 1.1 million square feet in the Minneapolis/St. Paul area.  Meritex is actively seeking to expand its Class A/Class B office/warehouse portfolio in the market.  John Ryden and Tom Lelich of the Minneapolis CBRE office assisted in the transaction.

Meritex Leases 192,000 square feet in Indianapolis

March 12, 2008 – Meritex Enterprises announced today that it has signed leases totaling 192,000 square feet at 9910 North by Northeast in Indianapolis. 

Meritex signed a new lease for 96,000 square feet with a tenant new to the Indianapolis market.  This tenant will take occupancy April 1, 2008. 

Meritex also renewed 96,000 square feet with KHF Holdings.  KHF Holdings is an independent owner and operator of Ashley Furniture Home stores in the Indianapolis and surrounding market area. Shortly after moving into the building three years ago, KHF doubled its size as it continued to grow and add Ashley Furniture Home Stores in the greater Indianapolis area.  KHF now services three stores in Indianapolis.  Steve Wood, Regional Manager for KHF, stated, “9910 is the perfect location for the distribution of Ashley furniture and also works extremely well for customer self pickup.”

Meritex Sells Saint Paul Office Building

January 8, 2008 - Meritex Enterprises, Inc. announces the sale of 444 Lafayette Road, in St Paul, MN for $36.0 million to 444 Lafayette, LLC. The facility is a 250,695 square foot office building and was originally built in 1919 as a multi-story warehouse facility. The structure was converted to an office building in the 1970’s. Meritex recently completed a major remodeling of the office building as part of a ten-year lease renewal with the Minnesota Department of Human Services. Meritex will provide property management services for the new owner going forward. The property sale was marketed for Meritex by the Twin Cities office of CB Richard Ellis.

This transaction is one of four major dispositions that Meritex completed in 2007 which represent some of the final steps of a strategy launched in 2003 by Meritex to reposition its real estate portfolio. Since then, Meritex has disposed of over 4.2 million square feet of office and bulk warehouse real estate and has reinvested into over 4.6 million square feet of institutional grade, multi-tenant industrial properties in the markets of Columbus, Indianapolis, Atlanta, Houston and Minneapolis.

“By executing our strategy, we have created a national platform of institutional grade industrial real estate that generates highly predictable cash flows and offers strong liquidity. We are now well positioned to successfully operate in a wide variety of market conditions,” commented Daniel Williams, Chief Investment Officer.

Meritex Sells Memphis Distribution Center

January 8, 2008 - Meritex Enterprises, Inc. announces the sale of 4836 Hickory Hill Road, in Memphis, TN for $16.1 million to Crown Memphis, LLC. The facility is a 646,000 square foot bulk distribution warehouse and was built in 1985. Meritex’s logistics subsidiary, Meritex Logistics – Memphis, will lease the facility from Crown Memphis Associates, LLC for a term of five years. The property sale was marketed for Meritex by the Memphis office of CB Richard Ellis.

This transaction is one of four major dispositions that Meritex completed in 2007 which represent some of the final steps of a strategy launched in 2003 by Meritex to reposition its real estate portfolio. Since then, Meritex has disposed of over 4.2 million square feet of office and bulk warehouse real estate and has reinvested into over 4.6 million square feet of institutional grade, multi-tenant industrial properties in the markets of Columbus, Indianapolis, Atlanta, Houston and Minneapolis.

“By executing our strategy, we have created a national platform of institutional grade industrial real estate that generates highly predictable cash flows and offers strong liquidity. We are now well positioned to successfully operate in a wide variety of market conditions,” commented Daniel Williams, Chief Investment Officer.

Meritex Sells Columbus Warehouse

January 8, 2008 - Meritex Enterprises, Inc. announces the sale of 1585 Westbelt Drive, in Columbus, OH for $4.85 million to Columbus VP Partners, Ltd. The facility is a 147,000 square foot bulk distribution warehouse building and was built in 1979. The property is 100% leased to Victory Packaging. Meritex had acquired the facility from RREEF in 2003 as part of a 1 million square foot industrial/flex portfolio.

This transaction is one of four major dispositions that Meritex completed in 2007 which represent some of the final steps of a strategy launched in 2003 by Meritex to reposition its real estate portfolio. Since then, Meritex has disposed of over 4.2 million square feet of office and bulk warehouse real estate and has reinvested into over 4.6 million square feet of institutional grade, multi-tenant industrial properties in the markets of Columbus, Indianapolis, Atlanta, Houston and Minneapolis.

“By executing our strategy, we have created a national platform of institutional grade industrial real estate that generates highly predictable cash flows and offers strong liquidity. We are now well positioned to successfully operate in a wide variety of market conditions,” commented Daniel Williams, Chief Investment Officer.