The Earle M. Jorgensen Co. acquired a 100,000-sf headquarters and distribution facility at 6201 Lumberdale Rd. from Reliance Steel and Aluminum Co. and sold its 275,000-sf facility at 5311 Clinton Dr. to Metals Supply Co. Ltd. Jorgensen, one of the largest independent distributors of metal products in the nation, needed to downsize its Houston operations while Metals Supply wanted to consolidate three facilities into one, says Mike Boyd of Boyd Commercial LLC/Corfac International. He and partner Clay Peeples assisted both companies in finding their new locations.
"We had been working with Jorgensen on their relocation and we came across Metals Supply and were able to put them together," Boyd tells GlobeSt.com. "Timing was the key so we didn't end up with one company owning two facilities for an extended period of time."
In addition to Jorgensen's need to downsize, executives wanted to move to the northwest submarket for better access to its customer base. In the heart of the northwest submarket sat a 1980s-era warehouse on 10 acres, vacated several years ago when Reliance Steel shuttered its local operations and now listed with Jeff Everist of CB Richard Ellis Inc.'s local office.
Boyd says the facility was a unique fit for Jorgensen. "Reliance was in a related industry so from a physical standpoint Jorgensen didn't have to change a lot," he adds. The company has started building out office space for the sales staff and expects to move into the building in March. According to the Harris County Appraisal District, the facility is assessed at $1.2 million.
Metals Supply, an importer and distributor of structural steel, was in the market to acquire a building to consolidate three locations in the city. Boyd says the company's executives wanted to stay in the southeast submarket, but also required a facility with heavy crane capacity and good accessibility for trucks. The best fit was Jorgensen's facility at 5311 Clinton Dr., which is assessed at $3.3 million by Harris County. The facility, with 19,000 sf of office area, was built in phases from the mid-1930s to the 1970s. Metals Supply is in the process of moving into the office/warehouse, Boyd says.
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