1,200,000 SF OF WAREHOUSE BUILDINGS, NATIONWIDE
There was a public warehousing company that developed millions of square feet of warehouses, throughout theUSand beyond — The Overmyer Company. In its time,
Overmyer was the equivalent in size of today’s industrial building giant – Pro Logis. Overmyer developed 100,000 + square foot warehouses, in prime locations, at a rate of one building per week, when construction loans were made available to the company.
There was one little problem, Overmyer had no audited financial statements. After years of development activity, most established lenders held as much Overmyer mortgage debt as they were willing to – until such time as Overmyer would provide audited statements. At about this time, there was a flurry of new REITS that were brought public. These were mortgage loan REITS and their problem was that there were few developers that wanted to borrow money from them. Mortgage REITS had to charge rates that were higher
than the rates charged by banks, insurance companies, and savings institutions. Well it didn’t take us long to see the opportunity. We brought the Overmyer deals to these mortgage REITs and explained the situation. The Overmyer buildings were big and well designed and built; they were in great locations; the mortgage loans being sought were very reasonable in terms of dollars per square foot. As for tenancy, Overmyer would lease out as much of the warehouse space as they could, to very reputable companies and then operate the balance of the space as public warehousing, which was the Overmyer operating company’s primary business. We financed the development of twelve warehouses in a one year period. In some instances we acquired ownership interests at attractive prices. Eventually the Overmyer company went out of business but their warehouses were good and all in all things turned out very well for lenders and investors. The lesson learn: Like my mother used to say, “There is a lid for every pot.”