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Business First - May 24, 1996
Work starts on E. Side space geared to small companies
By Brian R. Ball

A Columbus developer of small office-warehouse properties has plans to step up the pace of construction this year.

Westbourne Morrison L.P., an affiliate of Rudolph Construction Co., has started work on four 19,200 square-foot flexible office-warehouse complexes on the East Side to meet strong market demand for smaller industrial space.

The warehouses, expected to cost $2.15 million to build, mark the third and fourth phases of a 23-acre development the partnership owns on Westbourne Avenue between Morrison and Taylor Station roads.

"We feel there are a lot more small businesses than large businesses needing space," said James Havens, general partner of the family owned partnership.

"We'd rather have 16 small tenants because if a large business vacates, you have a large empty space to market," said Havens, a partner with Columbus law firm Havens, Willis Erney Skrobot and Fisher.

Edward R. Sepich, Havens' stepfather, heads the family enterprise, which also consists of the management of nearly 450,000 square feet of office-warehouse projects built by Rudolph Construction.

That portfolio consists of a total of 122,000 square feet on Frank Road and Jackson Pike and 240,000 square feet on Morrison, Zettler and Banwick roads.

Carol Cowdery, one of Havens' three sisters, also is active in the family business.

The partnership completed the two 19,200 square-foot buildings comprising Westbourne's first phase in November 1995. The second phase, completed in December, also consists of two 19,200 square-foot distribution centers.

Havens said he expects the partnership to build out the six remaining phases of the Westbourne development within five years.

Mike Hurd, senior marketing manager of industrial properties for Mathews Click Bauman, Inc., said smaller, start-up companies in Columbus often have difficulty finding space in which to grow their business.

"There's a lot of smaller space out there, but there's just not enough," said Hurd. "If it's a good business, the tenants can double then double again."

Such distribution centers do well in all sections of Franklin County, he said, because the small business owners like to lease space close to their homes.

Hurd said institutional investors tend to shy away from owning such industrial property because of the high turnover; but that has not deterred Havens. He said the first two phases on Westbourne filled up within five months.

"It's really been leasing itself," he said. "There's a real need for this kind of space."

Tenants of the Westbourne development include some retailers, but always ones with a distribution component to their business, Havens said. It also has a light industrial tenant, a cabinet and furniture maker.

Westbourne Morrison L.P. financed the project with two Park National Bank loans for a combined $2.15 million. Havens said the loans will finance the entire construction cost of the project.