Delta Group Electronics, a perennial member the Journal’s Flying 40 list of fast-growing technology companies, is expanding its local operation with the recent purchase of the 49,500-square-foot warehouse at 4521A Osuna Road NE.
Delta Group bought and will renovate the building, formerly home to a moving company that closed its Albuquerque operation, for manufacturing without tapping government tax breaks or tax-advantaged financing, said president and principal owner Harry Mueller in a news release.
Founded in Albuquerque in 1987, Delta Group Electronics is a full-service electronics manufacturer that has been operating out of a leased 40,000-square-foot facility at 4801 Lincoln NE.
The company offers turnkey services for customers in the aerospace, defense, homeland security and private industries. Employing about 380 people, the company has assembly operations in San Diego, Dallas, Rockledge, Fla., and Fayetteville, Ark., and administrative offices in St. Louis.
Delta Group spent about a year looking for an expansion building, said Keith Bandoni of commercial real estate services firm Colliers International, who represented the company in its site search.
“The quality of the product was what made the search difficult,” Bandoni said. “There’s a very limited supply of existing Class A warehouse space on the market at this time. Their size requirement of 40,000-to-50,000 square feet was also difficult to find.”
Given the slim pickings in the industrial market, Delta Group was considering the build-to-suit route — committing to a long-term lease for a developer to build them a new facility — when the building at 4521A Osuna Road NE became available.
Two of Bandoni’s associates at Colliers, John Ransom and Tim With, got the listing to sell S&M Moving Systems’ roughly 20-year-old building near Conejos Office Park at the northeast corner of Jefferson and Osuna NE. The asking price for the building was $3.5 million.
The purchase of an existing building saved Delta Group about 30 percent off the cost of a build-to-suit facility, Bandoni said.
Delta Group plans to move to the Osuna Road building around the beginning of 2016