Johnstone Supply

Challenge

Business was hot for the 11-unit Raleigh-based operator for Johnstone Supply, a wholesale distributor serving professional HVACR (heating, ventilation, air conditioning and refrigeration) contractors. As the Triangle market continued its explosive growth though, competition from other local, national and even global outfits was fierce. While Johnstone had a commanding presence in the market, its real estate limited efficiencies and convenience for customers. in particular. the company lacked a large facility in the population-heavy area of North Raleigh, which hampered its ability to meet its clients' needs.

Action

David Laxton, President and CEO of the local Johnstone business unit, had just acquired a building in East Durham to expand the company's ability to serve the Durham and Chapel Hill markets. For that transaction, Managing Director and Ascend Industrial Team lead Carey Greene was the listing agent. A couple of post-closing discussions ensued, and Carey was soon hired to search for a building in the 50,000-60,000 SF range in North Raleigh on behalf of Johnstone. The market was tight, however, and no appropriately sized buildings were listed for sale in the required geographic area

Result

Through personal relationships developed over the years with other industrial investors, Carey was able to identify a 55,000 SF building in a North Raleigh industrial park that the owner was willing to sell off-market. After a site visit, it was determined that the building could physically work for Johnstone and negotiations began soon thereafter. The building was placed under contract and the deal closed with a smooth transaction. Johnstone will be able to establish a larger and better North Raleigh location in the near future.

Testimonial

Rarely do I write a note thanking a vendor or service provider for their work, so this comes because of the positive impression that Carey has left on me and our organization. I am thankful for the work that he did for us. He was always knowledgeable professional and reachable. We really appreciate his help locating a building in Raleigh.

- David D. Laxton, CPA (President/CEO Johnstone Supply - JTeam Group)