AUSTIN – December 4, 2009 – Formaspace has signed a lease for 56,700 square feet at an industrial park in Northeast Austin – marking one of the largest industrial transactions in Austin this year.
Formaspace Moves to Austin, Texas
The deal enables Formaspace, which manufacturers custom workbenches, worktables and laboratory furniture, to add both new employees and equipment – and take advantage of a unique taxing designation created for manufacturers. Presently located in approximately 30,000 square feet in Hutto, the company intends to move into Harris Ridge Business Center before its current lease expires in June 2010.
Harris Ridge Business Center is a 395,000 square foot industrial development located on the northeast corner of Howard Lane and Harris Ridge Blvd. Phase I was completed by the project’s developer, Capital City Partners Inc., in the spring of 2008.
“We were able to offer Formaspace a new facility, built out to their exact specifications, at a competitive rate with a timeline that was pinpointed to the last detail,” says Robert Shore, a leasing agent with AQUILA Commercial. Shore, along with AQUILA Principals Mike Murphy and Chad Barrett, represented the landlord in the transaction. Formaspace was represented in-house.
Formaspace Focuses on Industrial Development by Expanding Footprint
In June, when word of Formaspace’s expansion broke, the company reported plans to grow its staff from approximately 42 to 70 employees once it moved the larger space. It also said it would invest in new machinery and new manufacturing methods in an effort to shorten delivery times from a one-to-ten-day window to a one-to-three-day shipping time. Formaspace says the goal behind all three decisions – adding space, employees and new equipment – is to secure larger clients and broaden its current capabilities.
Formaspace’s business strategies appear to be working, or at least garnering media attention. In August, it appeared on Inc. magazine’s official “Inc. 5000” list for the third year in a row. Formaspace achieved a three-year sales growth from 2005 to 2008 of 73.9 percent, with revenues growing to $7.3 million in 2008. It’s Benchmarx ™ was also featured on the Discovery Channel series “Prototype This”, and will soon be featured on ABC’s “Grey’s Anatomy.”
“AQUILA and Capital City Partners shared our vision, understood our needs, and were able to work with us to sign a deal that will help enable Formaspace’s future growth,” says Jeff Turk, CEO of Formaspace. “We are really blessed to have investors, clients and partners who are as focused on opportunities to take advantage of the current challenging economic environment as we are.”
Capital City Partners Principal Chris Whitworth notes Formaspace is in a position to benefit from Harris Ridge’s status as a “triple freeport” tax-exempt property. The designation means tenant businesses don’t have to pay property taxes on inventory that leaves the state within 175 days.
“The freeport tax exemption is designed for companies like Formaspace, and it’s just one more reason the company should flourish in its new location,” Whitworth says.
“From day one our team sought to understand Formaspace’s needs and tailor an option to those exact specifications,” Shore says. “We established a positive rapport and trust that was reaffirmed through every step of process.”
About AQUILA Commercial
Harkening the powerful and noble AQUILA eagle, AQUILA Commercial LLC is a full-service commercial real estate firm based in Austin, Texas. Launched in January 2007, a group of six core founders have a combined total of more than 80 years of direct industry experience working for major national companies from CB Richard Ellis to the Trammell Crow Co.
Recognized by their peers and publications as some of the top producers in their respective disciplines, AQUILA Commercial seeks to emulate the AQUILA eagle’s reputation for flying higher and maintaining the sharpest vision. For more information, please visit: www.aquilacommercial.com.
Formaspace advances the spirit of discovery and creation through the design and manufacture of custom workbenches, workstations, and technical furniture. The company develops elegant, practical, flexible solutions for customers in laboratory, technical, and industrial environments. Formaspace is in Austin, Texas, and can be reached at 1.800.251.1505. The company is majority owned by Council Oak Investors, LLC. For additional information regarding its products, Formaspace can be reached by phone at 1.800.251.1505 or by email at email@example.com.
About Council Oak Investors
Council Oak Investors, LLC is a private equity firm based in Austin, Texas. Council Oak Investors is committed to providing liquidity options and seasoned management to outstanding manufacturers and distribution firms nationwide.
For More Information:
Mary Alice Kaspar
Phone: (512) 963-1096