When we launched Flex Real Estate in 2024, one of the goals we set out to accomplish was to expand or locate a new facility for one of our sister companies, Air-tow Trailers. Air-tow Trailers is a privately owned leading provider of innovative ground-level loading trailers, manufactured completely in the USA. We are now about a third of the way through construction and as you get to see more pictures and posts about our new building I wanted to take you through why we are doing this expansion and how we ended up taking the path we did.
Example of an Air-tow Trailer
What Was Driving the Need for Expansion?
When I was still new to Flex and the details of manufacturing as a business, I quickly learned why this expansion of square footage was so critical. Air-tow, a growing company, was trying to manage trailer production and scale from three separate locations. Producing trailers was a multi-step process that required extensive coordination and travel to complete. For example, the enclosed Air-tow trailer would travel up to 100 miles during the production process: first, the metal is cut in Wapakoneta, welded in Botkins, painted in Columbus Grove, then back to Botkins for assembly, then back to Wapakoneta for enclosure assembly, and finally shipped to the final customer location. This amount of travel and coordination takes additional time to manage and source supplies, coordinate scheduling and management to be in multiple different locations at once, which is unrealistic long-term as the demand for trailers increases. The process needed to change if Air-tow was to grow further, and the solution was to consolidate these facilities.
Pre-Expansion Operational Flow
Expansion Solutions
What we sought to accomplish was to build or occupy a facility capable of housing the entire process, including on-site painting. We looked at several options, including buying a large single-tenant manufacturing building, building an additional 45,000-square-foot facility in Botkins, OH, and expanding our existing facility at 625 Commerce. The first possibility of buying a new building was difficult because there are only so many 100,000-square-foot-plus facilities available in this section of the I-75 corridor. There is currently only one modern facility available for purchase within 20 miles of Wapakoneta, and even then, it would not fit the layout and functionality of the production we needed to achieve. Building a new building in Botkins would have maximized the square footage we could achieve. However, we would still have coordination issues without the whole team under one roof, and there would be no contiguous space to support lengthy production lines. We ultimately landed on expanding our existing facility at 625 Commerce in Wapakoneta as the best solution for our production needs.
625 Commerce Expansion
Advantages of the 625 Commerce Expansion
Why did we land on expanding the existing building? The number one reason is the cost, with an existing structure and lot we were able to expand the facility by 76,000 SF, bringing the total square footage to 114,400 square feet. The cost savings with this expansion come from the fact that the Flex entities already own the land; we would not have to run new utilities; we would not be required to go through a lengthy and costly approval process; and we wouldn’t have to build an entire new box with one less wall to build. 625 Commerce also had significant equity in its capital stack, which we can access more easily through a refinance. The property already has 14,000 square feet of office space for our executives, sales, and administrative staff. When you consider that office can be up to $150 PSF to finish within a warehouse, this becomes a cost and time saver to have in place. Finally, location: with this facility in Wapakoneta, directly across from our Flex Machine Tool facility, we can create a campus feel that enables shared employee resources to move quickly between the two companies, fostering a more cohesive culture and helping everyone feel part of a larger team.
625 Commerce Pre-Expansion with 705 Commerce (Flex Machine Tools HQ)
Timeline and Completion
We began working on this project in January of 2024 and closed the refinance of the building and construction loan in April of 2026. We are well on our way to having the building shell fully assembled in the coming weeks and plan to deliver the finished warehouse space in December of 2026. From there, Air-tow will begin moving all operations in Botkins to the new Wapakoneta facility, with the first trailers produced in Wapakoneta in late January of 2027. We are excited to see how Air-tow can grow given the additional production capacity and control it will achieve after this expansion. In addition to the benefits for Air-tow, we are extremely excited to further our commitment to Wapakoneta and its residents by growing a company that will provide desirable jobs and contribute to the town's economy through income and spending.
625 Commerce Expansion Construction Progress
101 Commerce and What's Next for Flex Real Estate
Flex Real Estate will continue to work on this project as the asset managers. In addition to this responsibility, we will be tasked with leasing or selling the 101 Commerce buildings in Botkins, OH. We are hoping to bring a great tenant to Botkins to backfill Air-tow. We have engaged Todd Cochran and Andrew Mullen of Colliers to list these properties for us, and we know they will produce a great result.
This month, we have been working hard through the summer slog of vacations to find our next investment offering for our group of accredited investors. By the end of this week, we plan to have sent four letters of intent for promising flex and industrial deals in Ohio and beyond. We have completed $18,500,000 in transactions to date in 2026 and are highly motivated to maintain that momentum.
Reply to this email and let me know if there are any specific topics you would like to hear about next. Thank you for reading, and stay tuned for the August Focus!
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