The deal by Spartan Logistics to acquire the large warehouse and distribution center and a little more than 50 acres from Whirlpool has closed, with Fort Smith Regional Chamber of Commerce President and CEO Tim Allen saying the ownership change should streamline economic development efforts related to the property.
Benton Harbor, Mich.-based Whirlpool Corp. announced in October 2011 it would close the Fort Smith plant, which included around 2 million square foot of manufacturing space with an adjacent large warehouse and distribution operation. The eventual June 2102 closure of the plant marked the end of more than 45 years of Whirlpool operations in Fort Smith. Employment at the refrigerator production plant ranged from a high of 4,600 in early 2006 to around 1,000 when the plant closed.
A Chamber statement issued Monday (Sept. 29) said Spartan, working with R.H. Ghan and Cooper Commercial Properties, has purchased the 619,508 square foot warehouse facility and about 54 acres it occupies. The remaining and vacant 2,191,430 square foot manufacturing building and offices sits on 151 acres and is still owned by Whirlpool.
Officials with Jones Lang LaSalle, the real estate company hired by Whirlpool to market its shuttered Fort Smith facilities, said the warehouse and manufacturing space had a replacement cost of $111.6 million.
Spartan Logistics is a second generation family business with more than 25 years in the business of supply chain solutions. The company employs 300 in and operates 17 locations in four states. The company has more than 3 million square feet of space under management. The company also manages two building in Little Rock for customers, with customer-support operations also in California. Spartan and its associated companies provide “one-stop shopping” to many Fortune 500 companies with a packaging handling, light manufacturing, packaging assembly, inventory controls, shipping and other needs. One of its customers is Owens Corning, which has a manufacturing operation in Fort Smith.
Spartan first landed on the property in October 2013 when it acquired 100,000 square foot of the warehouse space and employed 12 for operations. At the time, Spartan Chairman Ed Harmon said up to 200 could be employed by Spartan and other tenants if the warehouse was fully utilized. Monday’s statement from the Fort Smith Chamber did not discuss job numbers or the sales price.
“We are excited to offer enhanced services to our current clients and believe this facility will enable us to significantly expand our presence in the Fort Smith area,” Harmon, chairman of Spartan Logistics and president of its development company, said in the chamber statement. “We are so pleased with the efforts of Fort Smith city leaders who helped move the approval process forward and get us to the closing table quickly with this purchase.”
Allen said with the deal in the books, the “repurposing of the site” is underway.
“Since Spartan announced their intent to purchase the property in May, we have been getting numerous calls from companies that are interested in leasing sections of the building. We expect that after today’s news, inquiries about the building will increase. It’s great to have an energetic company like Spartan Logistics as the new owner,” said Tim Allen, president of the Fort Smith Chamber, said in the statement.
In a brief interview with The City Wire, Allen said he has shown the property to three different companies, and is now able to work directly with Spartan on putting the property to good use.
“For me, having a new owner of that building really helps us with economic development, because we know we have that speed-to-market factor. The decision-making process is much faster,” Allen said.
Allen said having “a big piece of that property” clear from Whirlpool shows the progress being made to return jobs to the area.
“We’re really getting a lot of interest in that ... and I will really be surprised if we don’t land something else out there,” Allen said.