Fall River, Mass.-based Millstone Medical Outsourcing LLC is relocating its Memphis operations to a larger Olive Branch facility to broaden services and capacity.
Millstone, an outsourcer to the medical and dental device industry, has signed a 150,000-square-foot lease at 8836 Polk Lane in Industrial Developments International Inc.’s Crossroads Distribution Center.
Privately held Millstone currently operates in a 45,000-square-foot facility at 4800 Shelby Drive, suite 101, in addition to its Massachusetts headquarters. The expansion was precipitated by the growing needs of customers, Millstone Medical Outsourcing CEO Chris Ramsden said in a statement.
The new facility will offer Millstone operational space for mechanical inspection, loaner kit processing, bone/tissue storage, packaging services and distribution.
“Millstone Medical is preparing for explosive growth,” Ramsden said. “The additional operational space will allow Millstone to expand programs for existing customers and to bring on new customers. In addition, the new facility is strategically located near the distribution hubs of the area’s major carrier and continues to enable Millstone to provide extended service hours and expedited shipping.”
Mike Driscoll, vice president of industrial services with Colliers International Memphis, represented the tenant in lease negotiations. Tim Moore, vice president of leasing in IDI’s Memphis office, represented the landlord.
Millstone will occupy more than half of Crossroads’ Building B, a 267,843-square-foot building that IDI began speculatively constructing in April.
“It’s one of the two specs that are going up right now,” Moore said.
The other speculative development in the master-planned, 475-acre industrial park is Building G, which is 869,892 square feet.
Millstone will expand to its additional location in Crossroads by the end of the fourth quarter. A spokeswoman for the company said in the long term, Millstone will leave its East Shelby Drive location, but when is still to be determined.
The company plans to hire employees for an additional 25 positions in light of the expansion.
• In other commercial leasing news, 124 Timber Creek GP, an entity of REI Nation LLC, has bought the 4,800-square-foot office building at 124 Timber Creek in Cordova for $475,000.
The Class B building’s 2012 appraisal from the Shelby County Assessor of Property is $440,300.
REI Nation started four years ago at 130 Timber Creek. About two years ago, the real estate investment company bought 118 Timber Creek.
The company now has three buildings in a row for its corporate headquarters for all of its businesses, said Chris Clothier, REI Naiton partner and director of sales and marketing.
“The key to this building is we are going to turn roughly 1,500 square feet into a state-of-the-art meeting room for our expanding staff and to meet with local contractors and groups about growing in Memphis,” Clothier said. “We doubled in size last year, we see ourselves doubling in size again by the end of next year, and that’s why we went ahead and bought the building now.”
REI Nation, which buys and renovates single-family real estate-owned properties to then sell to and manage for investors, has a staff of 39 and foresees a need for upward of 60 people by 2013.
The firm was one of 13 Memphis-based companies to recently make Inc. Magazine’s annual Inc. 500|5000 list of the fastest-growing businesses in the U.S.
REI Nation has sold 277 properties so far this year, 63 percent of which have gone to existing clients.
“When somebody buys, they don’t just buy once,” Clothier said. “They end up buying a second, a third, a fourth, even a fifth time. That means every single person that comes in is going to exponentially grow down the line. It’s a big reason why we’re growing the way that we’re growing.”
Brian Califf of NAI Saig Co. represented REI Nation. Sam Zalowitz of Zalowitz Commercial Realty LLC represented the seller, A & V Management. Larry Hommel, senior vice president-community bank president at First State Bank, arranged REI Nation’s bank loan.
In addition, Duel Properties LLC has purchased the 2,000-square-foot office building at 7608 Poplar Pike in Germantown for $420,000. The Class B property’s 2012 appraisal is $248,000.
Laura Frazier and Ed Thomas with Colliers represented the buyer and end-user of the building. Duel Properties is an entity related to Michael Duel, a local Allstate agent.
Califf represented the sellers, Kenneth Thorp and Mary Louise Bourne Thorp.