OUR STORIES PROPERTIES HISTORY ABOUT US INVESTORS After a century in business, we’re still looking to the future. Catch up on our latest news. Meritex Welcomes Rhett Carlson, Investment Analyst November 22, 2021 Minneapolis, MN Please join us in welcoming our newest hire, Rhett Carlson. Rhett is joining us as an Investment Analyst working out of the Minneapolis office. He will provide analytical support to the Investments team for evaluation, underwriting, due diligence investigation and closing of industrial real estate investments nationally. Additionally, he will tour potential investments, assist in preparation of investment memos, track sale and lease comps, perform financial sensitivity, provide market research from third-party platforms, and assist in special projects. Prior to joining Meritex, Rhett worked for JLL as a financial analyst in the transactions group, specifically for the United Health Care Group account. He analyzed net effective rents and net present values for lease proposals, prepared real estate documentation for approvals, and reviewed and abstracted leases. Rhett also previously worked at the Terrace Group, where he performed financial analysis and underwriting for potential industrial investments, completed due diligence review, and assisted in various landlord representation activities. “During the interview process, Rhett impressed us with his background and enthusiasm for real estate,” said Matt Wagner, Senior Director of Investments at Meritex. “His experience and personality will be a great asset to us.” Welcome to the Meritex family, Rhett! Meritex Begins Construction on Parkers Lake Redevelopment October 28, 2021 Minneapolis, MN Meritex has begun redevelopment of Parkers Lake, a recently acquired 474,669 square foot infill industrial portfolio in Plymouth, Minnesota. The company will invest significant capital into the project to modernize and enhance the buildings to attract local, regional, and international companies to the park. “We’re dedicated to transforming this project into a best-in-class business park,” says Matt Wagner, Senior Director of Investments. “We feel Parkers Lake Commerce Center can capitalize on the need for high clear height warehouse space in this market and are excited to bring it to fruition.” The first phase of the redevelopment will focus on adding modern amenities similar to today’s industrial construction design standards and will include new storefront entrances and façade, new ballasted EPDM roof system, 32’ clear height, LED lighting with motion sensors, clerestory windows, ESFR sprinkler system, new concrete truck court with 24 additional dock-high doors, two drive-in doors, additional parking, new landscaping, and trailer parking. “Parkers Lake was well received in the market from the onset,” says Ben Lieser, Regional Manager. “We’ve had numerous showings with tenants ranging in size from 60,000 square feet to full building users, along with multiple requests for proposals.” Construction is scheduled to be completed by early 2022. Meritex Appoints New President and CFO October 7, 2021 Minneapolis, MN The Meritex Company has elected its next generation of senior leaders. The Meritex Board elected Tom Hotovec president. Tom has worked as CFO at Meritex since 2004, managing the company’s financial condition and refining its capital structure in support of its real estate growth strategy. Mark Spotts will take over Tom’s role as CFO. Mark joined Meritex in June 2020 as vice president of finance and capital markets. For six years prior, Mark worked in senior financial and accounting capacities for a public REIT which is focused on industrial real estate. “Building from within is the pathway to our future and ensures the continuity of critical elements we hold dear: our people, our values, and our culture,” says Harry G. McNeely, III (Paddy), CEO of Meritex. Tom Hotovec and Mark Spotts will assume their new roles effective October 2021. Looking forward in 2023, Paddy McNeely, the third generation of his family to lead the company, will transition to a new role as executive board chair. “Through diligence and planning, we are set up for continued success,” adds McNeely. “Much of this success is attributable to building our organization by developing our people. My goal is to ensure we will continue building and growing our company, our people, and our culture in the decades ahead.” Presently, Meritex leases warehouse space to approximately 450 tenants in nine markets in the U.S. Meritex has a portfolio of 11.5 million square feet in 102 properties. Customer Story: Leader Promotions August 31, 2021 Columbus, OH Excellent companies are defined by their creativity and responsiveness, whether they are handling day-to-day business or adapting to unprecedented times. It’s what helps companies stand the test of time and become leaders in their industries. Leader Promotions (Leaderpromos) - a promotional marketing agency that delivers custom products that promote top-of-mind brand awareness - shows their creativity and responsiveness on a daily basis. The company was founded a quarter century ago to fill a key need identified by founder Stephanie Leader. From humble beginnings selling t-shirts to Greek life at Ohio State, the company has grown into the largest, wholly woman-owned promotional products agency in the country. Now, customers can expect a responsive, customized experience to help make their vision a reality. That responsiveness and adaptability was demonstrated over the past year as the company pivoted to address COVID-19. Leaderpromos quickly rearranged their business model, adding manufacturing capabilities, and utilizing their supply chain to import PPE for the community. Even the basic bread and butter of the company – promotional kits for companies – required change. Due to COVID-19, there were no more conferences or large corporate gatherings. Instead, businesses looked for ways to connect with employees they were no longer seeing in person, leading to requests for kits to be mailed to employee’s homes. Leaderpromos became a single-source solution for many looking to engage employees in the new virtual-only environment since the agency possesses the latest technology and resources to activate brands. Even the types of products companies were looking for changed in 2020. Instead of t-shirts or hats, companies wanted branded hand sanitizer. Leaderpromos responded to the demand by directly sourcing industrial sized sanitizer and investing in label machines. Setting up a mini-manufacturing space allowed them to deliver 10,000 units a day with custom labels, making them unique to a client’s brand. Clearly Leaderpromos knows a thing or two about being adaptable and responsive. Well before COVID-19 struck, it was exactly those traits that led them to choose a Meritex warehouse as their base of operations. “Meritex allowed us to make changes to the space and helped us create our vision,” says Joe Rezabek, president of Leaderpromos. “They were very consultative and we had a lot of great dialogue. They were especially great when things went wrong. For example, we had some water leaking into our space, and that same day someone was on the roof to deal with it. Things happen, and it’s how you respond to it that matters. Their response has always been spot-on.” Leaderpromos currently occupies 24,000 sq. ft. in Columbus, Ohio, and is actively looking for more space within their current building or nearby. “We’re strategically working with Meritex to find additional space with them because we trust them as a partner,” adds Rezabek. “We thought about buying our own space, but it’s not a core competency for us. We’d rather pay for the space AND the services from Meritex.” Meritex Acquires Center Park Portfolio Adjacent to Charlotte Douglas International Airport August 4, 2021 Charlotte, NC Meritex is expanding its presence in Charlotte with the recent acquisition of the Center Park Portfolio, which includes two Class A multi-tenant infill industrial properties located adjacent to the Charlotte Douglas International Airport at 900 and 1110 Center Park Drive in Charlotte. “We are extremely excited and proud to invest in Charlotte yet again with the addition of these two infill industrial buildings. It was years in the making with deep relationships that lead to this successful transaction. The project provides immediate synergies and scale to our existing CLT portfolio which will benefit us as well our tenants long-term,” says Matt Wagner, Senior Director of Investments. At 150,190 total square feet, the buildings are in the prominent Airport/West submarket providing immediate access to Charlotte Douglas International Airport (CLT), Charlotte CBD, intermodal facilities, strong labor force, amenities, and major arterial highways such as I 485, I-85, I77, and Billy Graham Parkway. The property is 96% leased to a diverse tenant base of ten international, regional, and local companies. The project has several modern building features including a specialized roof-top solar panel system. “Successful properties like the Center Park Portfolio speak to Charlotte’s economy, which is fueled by diverse industries,” says Mike Malta, Property Manager in Charlotte. The 900 and 1110 buildings, finished in 2001 and 2007 respectively, bring the Meritex portfolio in Charlotte to 1,151,354 square feet serving more than 55 tenants. Justin Smith and Rob Spier with Colliers International represented Meritex on the sale of this transaction and will also be retained for leasing. “Colliers is very proud to have now represented Meritex in their fourth off-market transaction locally. This transaction was extremely unique because the traditional paths to the Airport Submarket through capital markets or sourcing land are almost unattainable due to a capital cloud circling Charlotte and these assets being located in a land-constrained submarket. This and future transactions continue to demonstrate Meritex’s commitment to the Charlotte region and their goal of growing their current portfolio well above one million square feet,” says Justin Smith, Senior Vice President of Colliers International. Meritex Acquires Large Infill Industrial Redevelopment Site in Minneapolis July 1, 2021 Minneapolis, MN Meritex recently acquired a 474,669 square foot infill industrial portfolio located in the western metro of Minneapolis at 14600 21st Avenue North in Plymouth, Minnesota. With plans for a major redevelopment this summer, Meritex intends to invest significant capital into the project to modernize and enhance the image of the buildings while simultaneously initiating a rebranding and marketing campaign to attract local, regional, and international companies to the park. “We are very excited to expand into the west metro of Minneapolis and look forward to transforming this project into a best-in-class business park,” says Matt Wagner, Senior Director of Investments. The industrial development will be completed in multiple phases with construction starting immediately for a portion of the site that is currently unoccupied. Meritex is naming the project Parkers Lake Commerce Center. “We plan to continue pursuit of excellent well-located industrial properties and land sites similar to this project in Minneapolis and nationally,” adds Wagner. Parkers Lake Commerce Center was formerly the North American headquarters for Nilfisk International until they relocated years ago. The existing project consists of three interconnected buildings totaling 474,669 square-feet. Meritex will begin construction in the coming months with the first phase of the redevelopment, consisting of approximately 216,275 square feet. The state-of-the-art redevelopment will feature modern amenities similar to today’s industrial construction design standards and will include new storefront entrances and façade, new ballasted EPDM roof system, 32’ clear height, LED lighting with motion sensors, clerestory windows, ESFR sprinkler system, new concrete truck court with 24 additional dock-high doors, two drive-in doors, additional parking, new landscaping, and trailer parking. The first phase of the construction is expected to be completed and available for occupancy by late 2021. Future phases are tentatively scheduled within the next few years. “The portfolio is strategically located in the Northwest submarket and surrounded by amenities, Fortune 500 companies, labor, housing, public transportation, and provides immediate access to major transportation nodes such as I-494, I-394, I-94, and Highway 55,” says Ben Lieser, Regional Manager at Meritex. “We feel Parkers Lake Commerce Center can capitalize on the need for high clear height warehouse space in this market. Over the past couple of years high clear distribution vacancy rates in Plymouth have been sub five percent.” Transwestern and Ten-X assisted in the sale process. Meritex will manage the portfolio and has selected Brent Masica and Jason Meyer of Cushman & Wakefield for leasing services. The design team consists of Pope Architects, BKBM Engineers, and Innovative Structural Solutions. Meritex Expands in Dallas with Acquisition of Gateway 161 Logistics Center June 22, 2021 Dallas, TX Meritex recently increased its real estate footprint in Texas with the purchase of three Class A multi-tenant industrial buildings adjacent located at 4400, 4450 and 4500 West Walnut Hill Lane in Irving. “The demand is strong for quality product close to the DFW airport,” says Ben Lieser, Regional Manager at Meritex, “Gateway 161 checks all the boxes and we’re excited for this addition to our Texas portfolio.” The buildings, completed in 2017 with a combined 259,555 square feet, are 88.8% occupied with nine tenants in place. A lease is nearing finalization on the one remaining vacancy. The property is strategically located between Dallas and Fort Worth adjacent to the Dallas-Fort Worth International Airport. It offers immediate access to George Bush Turnpike, Hwy 183, Hwy 114, Hwy 360, Fedex Airport Cargo, UPS Airport Cargo, I-35E, and I-30. “We are excited to expand again into Dallas and plan to continue to pursue other infill industrial development sites and existing buildings both nationally and within the DFW market” says Matt Wagner, Senior Director of Investments. Meritex recently added Drew Evans, Director of Investments to open a Dallas office with intentions of growing the Dallas and Houston presence significantly over the near term. The diversified tenant base represents local, regional, national, and international companies. Suite sizes range from 5,868 to 66,848 square feet. The acquisition brings Meritex’ portfolio to approximately 569,470 square feet of infill industrial product in the Texas market. The project will be managed by Holt Lunsford Commercial. Meritex Welcomes Eddie Starz, Investments Intern June 15, 2021 Minneapolis, MN Join us in welcoming Eddie Starz, our new Investments Intern. Eddie will provide analytical support to the investments team for evaluation, underwriting, due diligence investigation and closing of real estate investments. Additionally, he will tour potential investments, assist in preparation of investment memos, track sale and lease comps, provide market research, and assist in special projects. “Eddie really impressed us with his passion for real estate,” says Matt Wagner, Senior Director of Investments. “We know he’ll be a great asset for our team, and we look forward to helping him learn and grow.” Eddie is a senior at University of St. Thomas in St. Paul, MN and is expected to graduate this year with a bachelor’s degree in real estate and business. He most recently worked as a real estate and development intern with Big Sky Resort in Montana. He is active in several collegiate sports, is a Real Estate Society board member, and participates in the Big Brother and Big Sister Mentorship Program. Meritex Acquires Franklin Forest Business Park in Atlanta June 15, 2021 Atlanta, GA Meritex continues to increase its industrial real estate portfolio in the Atlanta market with the acquisition of Franklin Forest Business Park, a two building, Class B, multi-tenant industrial park totaling 95,845 square feet, located at 805 and 825 Franklin Court in Marietta. The two buildings are highly flexible and provide immediate access to I-75 and I-285. Suite sizes range from 3,644 to 20,551 square feet. The park is currently 89 percent leased by ten local and regional tenants. “Our newest acquisition gives us fantastic opportunity for future growth,” says Dan Ward, Regional Manager for Meritex in Atlanta. The purchase of Franklin Forest comes immediately on the heels of another development by Meritex. Construction on Cedars Business Center II, a 78,400 square foot industrial building at Gwinnett Progress Center in Lawrenceville, is nearing completion and has already been pre-leased to The Goodwin Company. With this newest acquisition and development, Meritex now owns 24 multi-tenant industrial buildings totaling over 1.6 million square feet of space in the Atlanta marketplace. “We continue to search for well-located development sites or existing infill industrial investment opportunities in Atlanta and other select high growth markets nationally,” says Matt Wagner, Senior Director of Investments at Meritex. Meritex is focused on acquiring and developing shallow-bay and mid-bay multi-tenant industrial properties nationally with long-term ownership in mind. They are actively pursuing speculative ground-up development sites and acquisitions of existing buildings with varying risk levels such as opportunistic, value-add, core-plus and core industrial investment opportunities with a concentration on infill properties located in growth markets within proximity to major transportation nodes, labor, housing, city center, and amenities. Ward adds, “2021 is shaping up to be a strong year for industrial real estate and we’re seeing energetic leasing activity and optimism among our tenants.” In a recent survey of tenants, Meritex found that 87 percent felt their warehouse space needs either increased or remained the same over the past year, 74 percent felt their businesses were not negatively impacted by COVID or expected to be back to normal in 2021, and 52 percent are hiring or planning to hire this year. Meritex Welcomes Samir Omar, Accounting Intern June 4, 2021 Minneapolis, MN Join us in welcoming Samir Omar, our new Accounting Intern! Samir will be assisting with a variety of accounting tasks including general ledger account reconciliations and journal entries, budgeting, financial analysis, and reporting. “Samir’s eagerness to learn and his experience impressed us during the interview process,” says Brad Bowman, Controller at Meritex. “We’re excited to have him join the Meritex family for the summer.” Samir is currently a junior at the University of Minnesota Carlson School of Business. Meritex Sees Strong Leasing Activity in Twin Cities and Beyond May 17, 2021 Minneapolis, MN The industrial real estate sector continues to see strong growth in the first quarter of 2021. Minneapolis-based Meritex is seeing the demand first-hand in markets across the country, and in the Twin Cities metro area. “The healthy leasing activity we are seeing in the Twin Cities is part of a larger national trend,” says Ben Lieser, Regional Manager at Meritex. “Many of our customer’s businesses are growing, they are feeling optimistic and are ready to commit to more space. We are always excited when we can partner with them to support their needs.” In a recent survey of tenants, Meritex found that 87 percent felt their warehouse space needs either increased or remained the same over the past year, 74 percent felt their businesses were not negatively impacted by COVID or expected to be back to normal in 2021, and 52 percent are hiring or planning to hire this year. Illustrating this trend, CPC (Colder Products Company), a Meritex customer since 2013, recently expanded its footprint in the metro area, leasing additional space in Meritex’s Highcrest Distribution Center facility in Roseville. CPC now occupies 80,000 sq. ft of space across two buildings – 13,623 sq. ft. in 504 Malcom for light assembly and storage of medical goods, and 66,245 sq. ft. in 2280 Walnut for warehousing and distribution of product. CPC is a leading innovator of quick connect / disconnect fluid couplings, fittings and connectors that are used in biolopharma, medical and industrial capacities. “We are pleased with how quickly Meritex responded to our requests regarding an additional site and our plans to build out an existing property,” says Dan Frees, CPC Chief Financial Officer. “CPC is growing rapidly and we need quick action from our vendor partners to support our customers’ demands. Our Meritex team, already familiar with our operations at the Malcolm facility, sought to understand our warehouse needs specifically before proposing solutions.” Frees added, “From first phone call to first shipment, the Walnut warehouse, with its complex requirements, will be operational in just 4-1/2 months.” Meritex’s Highcrest Distribution Center, completed in 2015, is a state-of-the-art 130,000 sq. ft. bulk distribution warehouse with 32-foot clear heights. Centrally located, Highcrest Distribution Center has easy access to I35-W and Highway 280. The expansion was facilitated by Todd Hanson and Chris Weirens with Cushman and Wakefield. “Highcrest Distribution Center was the perfect fit of high image, modern distribution space for a company like Colder Products, which will allow them to expand and continue their success as a world class manufacturer,” Hanson said. Meritex Names Drew Evans Director of Acquisitions for Texas Markets May 11, 2021 Dallas, TX The Meritex Company has hired Drew Evans to serve as Director of Acquisitions for the Texas markets. Drew will source, underwrite, negotiate, verify and close on targeted acquisition and development opportunities in Texas, particularly in the Dallas and Houston areas. He will also manage the sales process of properties identified for disposition. “The economic strength in Texas has led to very robust population and employment growth, creating an incredibly strong industrial real estate sector,” says Ray Kivett, Chief Investment Officer at Meritex. “Knowing how strong the market is, we’re actively looking for acquisition, new development and redevelopment opportunities in both Dallas and Houston. We’re confident that Drew’s experience in the area will be a key asset for us.” Previously, Drew spent almost a decade working with the Covington Group, Inc. in Dallas. While there, he managed the acquisition of more than $300 million and 13.7 million square feet of commercial real estate space, and sourced, underwrote and closed industrial and mixed-use deals across the country. Meritex currently owns and manages 309,915 square feet of industrial real estate space in Texas across five properties, and intends to increase its footprint in the area to at least 2 million square feet in the near term. “2021 is shaping up to be a strong year in terms of acquisitions, leasing, and overall business activity,” adds Kivett. “Our tenants are also telling us they’re feeling confident, and many are even planning to expand this year.” In a recent survey of tenants, Meritex found that 87 percent felt their warehouse space needs either increased or remained the same over the past year, 74 percent felt their businesses were not negatively impacted by COVID or expected to be back to normal in 2021, and 52 percent are hiring or planning to hire this year. 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