The American Tire Distributors warehouse in Harrisonburg is up for sale with an asking price of $7.2 million, according to B+E, an investment firm handling the sale.
The approximately 130,000-square-foot distribution center in northern Harrisonburg was built as an ITCO Tire Co. center nearly 25 years ago and sits on more than 12 acres. In 1998, American Tire Distributors merged with ITCO, according to the Securities and Exchange Commission.
“Harrisonburg is a wonderful industrial market and it’s just really well placed,” said Camille Renshaw, the CEO of B+E. “But often the locals don’t realize how valuable a location like this might be.”
The city’s proximity to Interstate 81 allows for access to many markets along the East Coast. The Friendly City’s American Tire Distributors location is the company’s only location in a 100-mile radius and moves about 4,000 tires every day, according to the B+E profile of the business.
Shipping and logistics play a vital role in getting products to consumers, Renshaw said.
“Distribution centers are one of the most popular asset classes, if not the most popular, in the country right now,” she said.
Various markets, such as manufacturing, are under pressure from trade disputes but are still strong, Jerome Powell, the chair of the Federal Reserve, said during a press conference on Wednesday after announcing another reduction in interest rates.
“The consumer-facing companies that we talk to in our vast network of contacts report that consumers are doing well and [are] focused on the good job market and rising incomes,” he said. “That is the thing that’s pushing the economy forward and doesn’t seem to be affected by the weakness in other areas.”
American Tire Distributors has almost seven months left on the lease and regularly generates profit, according to B+E’s profile of the business.
The tire company is based in Huntersville, N.C., and in October 2018, the business entered Chapter 11 bankruptcy. By December, it had emerged from the bankruptcy having reduced its debt by $1.1 billion, according to the Charlotte Business Journal.
Renshaw said B+E only sells properties that have long-term tenants, and the sale will not result in the tire supplier going out of business.
American Tire Distributors “is very committed to staying in the community,” she said.