Tire wholesaler Motostar Tire & Auto Products Inc. has expanded its storage and distribution capacity in New Hampshire by moving to a 150,000-sq.-ft. commercial warehouse in Merrimack, which it purchased earlier this year.
Taking advantage of the ailing real estate market, the distributor bought the warehouse in early 2010 from a plumbing supply company that had moved to a new location. Motostar owner Gene Bova Sr. said the company opted out of its lease of a 58,000-sq.-ft. storage area in Manchester, N.H., to buy the facility, which also serves as the firm's headquarters.
“A couple of winters ago, we had to store our snow tires in 44 rented trailers in order to accommodate everything that we're selling,” Mr. Bova said. “My warehouse guys are happier with me these days.
“The commercial real estate market was in such a good position for people looking for real estate that we couldn't help but buy,” he added. “We ended up really not paying a whole heck of a lot more for what we purchased versus what we were renting.”
Mr. Bova did not disclose the purchase price, but said the acquisition has allowed the company to expand its capacity, which was necessary because “we have such a wide expanse of products” ranging from 4-inch lawnmower tires up to “full blown OTR and everything in between.”
Motostar hosted an open house at the new facility in mid-August with more than 100 customers attending.
In addition to adding capacity, the new warehouse also helps to make running the business more efficient, Mr. Bova said. It's an off-highway, single-story building with 13 bay doors instead of three in the previous facility. The building also provides for faster Internet connection via a network of fiber optic cables.
Mr. Bova also said the building is “completely self-sustaining in the event of a power outage.”
In addition to Merrimack, Motostar operates three other distribution centers: a 25,000-sq.-ft. warehouse in Lisbon Falls, Maine, it bought from Topsham, Maine-based Lee's Tire & Service in April 2007 and has two warehouses in Upstate New York that offer a combined 30,000 square feet of storage space.
Motostar distributes tires throughout Connecticut, Maine, Massachusetts, New Hampshire, New York and Rhode Island.
Founded in 1993, Motostar has grown from a small storage facility and one truck to a regional wholesaler for Best One Retail Dealer Network, Bridgestone Americas' TireStarz, Continental Tire the Americas' Gold, Cooper Tire & Rubber Co.'s Mastercraft Tire Century, Kumho Tire USA Inc.'s Fuel and Yokohama Tire Corp.'s Advantage associate dealer programs.